Documenting is easy as 1-2-3
Many small businesses get caught in the whirlwind of falling behind in their paperwork because they have not discovered or utilized automation to make their bookkeeping process easier. Believe it or not, many feel that as long as they have the bookkeeping software in place (ie Quick Books), they have fully automated. This is not the case. Having software to track entries is one of the steps to full automation. Still, there is the process of organizing and categorizing your data before entering it into the system. This is where human error happens if you don’t have a basic knowledge of bookkeeping. For those who are still learning, there is an easier way. Automating various bookkeeping tasks will not only keep you up to date in your paperwork, it will also streamline your entire process and save you valuable time, which can be fully utilized in other revenue producing areas of your business.
There are various products on the market that aid in automating the documentation process and are able to be fully integrated with your current bookkeeping system. With these products, you will be able to scan, organize, and in some cases attach them to your bookkeeping transactions.
Smart Vault - this on-line document management system is available for a monthly subscription fee as low as $15. Being able to access this system anywhere anytime is a major plus for e-businesses. You will be able to scan, attach, share and store your documents all within Quick Books. There is no per user charge with this product, so you are only subject to the one low monthly fee. It is currently being offered with a 30 day no risk free trial.
PaperSave® - this document management system is a standalone module that must be installed on your system. Although it’s a little pricier, $195 for a single user, you will have the ability to integrate your records directly with MS Office products Excel, Word, Outlook, & PowerPoint. Having the same ability to scan, attach, share and store documents, the software holds it own by electronically storing over 200,000 documents.
Ultimate AppendIT - this software is unique in that it creates Windows folders on your PC in directories organized the same as QuickBooks lists. All documents, images, desktop shortcuts and web pages, which are placed in a folder, are easily linked to your QuickBooks entry. You maintain full control over what’s linked and how automated you want it to be. This is a standalone program that’s easy to install and only cost $24.95 to $49.95.
Managing your small business is very time consuming, so make sure you have the tools necessary to keep you ahead of the game. Automate wherever you can to give your company the competitive edge it needs in time management and document storage and retrieval.
Partnering for your success,
Jacqueline E. Williams
Financial Strategist
Now that you’ve issued 1099s and W2s, what’s next?
I’m sure by now, that your business has issued all of its 1099s and W2s by the February 2nd deadline, right? Well, the fun isn’t over. You also have to send copies of these forms along with a summary or transmittal sheet to the Social Security Administration and the IRS. To do this you’ll be using forms W-3 and 1096.
What is form W-3?
Commonly known as “Transmittal of wage and tax statements”, this form summarizes the total amounts reported on forms W2 issued to employees. It includes wages, federal and state taxes, Medicare, and other miscellaneous payments made to employees. You have the option of filing this form electronically or mailing it directly to the Social Security Administration. If you choose to mail the form, you need to include Copy A of the W2 statement for each employee that it was issued for. When filing electronically, you need only to send form W3. The deadline for filing this form is March 2, 2009
What is form 1096?
Commonly known as “Annual Summary and Transmittal of U.S. Information Returns”, this form summarizes various types of miscellaneous payments from forms 1098, 1099, W2-G, & 5498. You are required to file form W-3 electronically if you have more than 250 returns of any one type. If mailing the form, you need to include copies of all submitted 1099, 1098, W2-G & 5498. The deadline for filing this form is March 2, 2009 with forms 1098, 1099 & W2-G, or June 1, 2009 with form 5498.
In addition to federal submittal forms, each state has its own requirements for submission of employee and contractor statements. You must check with your local state taxing authority for specified instructions, or notify a bookkeeper for assistance.
Partnering for your success
Jacqueline E. Williams
Financial Strategist
TAXES DON’T HAVE TO BE SO TAXING
Tax season is here. Most believe that it only occurs once a year, but actually the season lasts all year. Whether for businesses or individual, events continually occur all year long that represent potential tax benefits or blunders, depending upon how they are handled. Although the major events occur from January through April, the remainder of the year should be utilized as the planning phase or preparation phase for the next filing period.
Just recently I had a discussion with a colleague about performing tax services. She proceeded to tell me what I should do during the busy season from January to April, in order to file taxes properly for clients. First she talked about how unfair the tax code is to the average citizen, and then she proceeded to explain how necessary it is to receive a refund. She viewed it as some sort of payback from the government for taking her hard earned money all year. She also talked about maximizing deductions, tax credits, and exemptions. As I listened intently, I waited patiently for her to come to the part about her role as a taxpayer and what she was willing to do to educate herself on the process. As the conversation concluded, I expressed my frustration with trying to educate individuals, who were only concerned with the size of their refund instead of overall planning. My colleague finally admitted that she fell into that category, and that her only concern was that she wanted a refund, the bigger the better. Anything that occurred outside of that reason was to be challenged. In conclusion, we both determined that we want to have the best experience possible. I want clients to be properly prepared throughout the year, and she wants to have a better overall financial experience. At this point I realized to achieve this will take a great coordination of efforts.
There appears to be a great divide that exists between tax preparers and tax clients. Why? For many reasons. The average tax client feels challenged by the complexity of the US tax code, and therefore has created a barrier of distrust concerning this system. They believe the majority who pay into the system are low to mid level wage earners, while the wealthy take advantage of laws written in their favor.
The tax preparers goal is to complete the tax form as accurately as possible, which allows the client to take advantage of all deductions and credits to their benefit. The tax preparer is committed to portraying the information based on the requirements of the US tax code.
How can we collaborate efforts so that everyone comes out on top?
The first course of action should be to clear our minds of what previously existed by way of action plans. It’s clear that what has happened has not worked very well for either of side. A shift in our mindset must occur. Change only comes from within.
Secondly we must take on new habits of behavior. The ultimate goal is to have each person financially solvent and to minimize their tax liability, while taking advantage of any credits or deductions. One must remember that every financial event that happens in our life has a potential direct impact on our tax situation. Start with educating yourself on simple processes like properly filing your W-4.
Third, we must take the necessary steps to plan in advance. Planning alleviates the stress of having to figure out important information months after it occurred. One procedure I’ve trained myself to do is to make a folder at the beginning of each year labeled “Tax File 200_”. As items occur throughout the year, such as donating clothes to Goodwill, or attending tax deductible fund raising events, I keep a copy of the notice or receipt, or whatever evidence is provided, as documentation of the possible deduction. I also make small notations or notes about what occurred and for what purpose. At the end of the year I just refer back to my folder and categorize all the information based on the type of expenditure. This process has helped numerous clients be better prepared for reporting special tax events. But still the trick here is you have to do it yourself.
Once we all make the decision to join efforts, we can all have a better tax experience!
Jacqueline E. Williams
Financial Strategist
Top 10 Reasons to Use a Virtual Bookkeeper
How much is your time worth?
Having a virtual bookkeeper is fast becoming an essential need for the busy entrepreneur, small business owner and person on the run. With the advent of new technologies and ways of doing business, the VB is here to help you along your way. Below are ten reasons to hire a Virtual Bookkeeper.
1. Focus on the business of making money.
Having a VB allows you the freedom to create more profitability for your company by allowing you to concentrate solely on your business, not the mundane tasks that are inherent in business. Making money is what business people do and the more time they have to concentrate on their business, the more money and opportunity they will create.
2. Saves you money.
Why invest in payroll, benefits, insurance, etc., when you could be delegating that money to building your business. Why worry about personnel calling in sick or taking vacations? There is no need to hire in-house personnel when a Vb can be there when you need them to perform the duties that you need in running your business.
3. Freedom to pursue pleasurable activities.
Having a VB work with you frees you up to pursue the activities that help keep your creative juices flowing. When you are bogged down wondering if the bills are paid, you are not thinking about new and exciting ways in which your business could be growing.
4. One-stop shopping.
A VB can perform duties that range from QuickBooks support & training, complete data entry & journal entries, accounts receivables/payables, reconciliations, financial statements, complete payroll, taxes, notary services, & sales & use tax reporting. There is no records management duty that a VB cannot perform or would be willing to learn.
5. Tailored to fit your needs.
Whether you need in-house training & support or would like to outsource completely, a VB can perform these duties. They are structured to fit each individual client’s needs. Fees are arranged for monthly pricing packages to hourly consultant rates. Whatever your needs are, the VB and you create your own individual working partnership.
6. Freedom to work from any location.
Whether you are in your office, your home or on vacation in Tahiti, a VB is always accessible to you. Contact is maintained through telephone, fax, E-mail, and online messaging.
7. Delegate time-consuming responsibilities.
Let a VB take care of those responsibilities so that you may pursue (worry-free) the business of living your life and running your business.
8. Highly trained personnel.
VBs are professionals that have training in the corporate, small business and professional world and have tailored their skills to meet with the needs of the modern day business professional. They have found that every professional has varying needs and offer their expertise in caring for these needs.
9. Individual service provided.
For the entrepreneur, freelancer or small business, it is important that your particular needs are seen as unique. A VB is the person who will oversee your records management system. They can train & develop your staff, maintain your general ledger, pay your vendors, invoice your clients, pay employees & payroll taxes, generate periodic reports for management review, or reconcile your accounts monthly. They act as your partner in caring for those tasks personally.
10. Let their strengths be your strength.
Why waste time on tasks that are not your primary objective? Being a successful business owner entails hiring the right people for the right job. By hiring a VB, you are partnering with the professional that has the knowledge of the inner workings of the financial and corporate fields.
JANUARY SPECIAL: Save 20% on bookkeeping services. Contact us today for details!
Jacqueline Williams
Financial Strategist
NEW YEAR’S FINANCIAL RESOLUTIONS
The holiday season is finally over and it’s time for us to get back to what we call the “grindstone of life.” The beginning of the year brings new hopes, new possibilities, new ideas, new dreams, and new ambitions. We generally take this as a time to reflect on what has happened, and look for ways to make our experiences better than ever before. One of the most common practices is to make a new year’s resolution. From health goals, to relationship goals, to financial goals, we challenge ourselves every January 1st to come up with bigger and better ideas on how to live our lives more prosperous. Goal setting is a necessity if you expect to achieve anything. I’ve asked a few colleagues about their feelings on their financial goals for the New Year.
My News Years Resolution is the affirmation I repeat to myself everyday….
“I am the Center of Abundance, all of my needs, wants and desires are fulfilled”
and
“The Universe supplies all of my needs with unlimited possibilities”
Linda Slack, Creative Director
African American Family Connections
http://www.africanamericanfamilyconnection.com
I don’t really do resolutions I set goals instead. My financial goal for 2009 is doesn’t have $ value because I find I achieve more when I’m not focused on the money but instead focus on my passion which is helping women who want to operate a business online from home. So my financial goal for 2009 is help 5000 women enjoy their life by developing and improving their skills and resources to generate revenue continuously by operating a business online from home.
Beryl Powell
Business Advisor
OperateItRight (www.OperateItRight.com)
My goal is very simple; to save more money by making sure that I pay myself first.
Richard Williams, III, PhD
Assistant Professor, Morgan State University
My position on New Year’s resolutions is that every day is a new opportunity to make a better choice. New Year’s can occur daily, giving new hope, new faith, and a new found purpose of having the best experience possible. What’s your position on this most famous method of goal setting? Share your belief by leaving us a comment.
Jacqueline (Ford) Williams
Financial Strategist