Setting up reminders in Quick Books
With our busy lives it’s hard to remember everything we have to do or every place we need to be. This can be especially true for small business. You have to wear many hats in your profession and sometimes it can be a bit overwhelming. Thank God for technology! Today, many businesses, including individuals, rely on technology to help keep them organized and focused. With items such as Palm, MS Office, and other technology oriented personal assistants, we are able to stay on top of our busy schedules.
In the realm of bookkeeping, many software programs have tools and add-ons to help keep you organized. For instance, Quick Books has a wonderful feature called “Reminders” which helps you to keep track of all the tasks you perform in the software. It shows pending items such as outstanding bills and customer invoices, items you need to act on, and also, as the name states, items you need to be reminded of. This feature will also posts notices or alerts about any QuickBooks business services that need your attention, such as software updates. This is an excellent tool for making sure that certain repetitive tasks are handled.
Setting up this feature is very simple to do.
Log into QuickBooks and open your company file
- Go to the Edit menu and click Preferences.
- In the Preferences window, click Reminders in the list on the left.
- Click the Company Preferences tab.
- For each type of task listed, choose a preference: Show summary, Show list or Don’t remind me.
- For date-driven events, enter the number of days in advance that you want QuickBooks to add a reminder to the list.
- To have the reminders window open every time you start QuickBooks, click the My Preferences tab and select the Show Reminders when opening a company file checkbox.
- Click OK.
At this point you are ready to use the list. On the company menu, choose “reminders”. Once here you can view, add, or modify existing reminders. Keep in mind, this feature is only as useful as the information you place in it. It would be a good practice to set this up at the start of your file, and each time a new event occurs, update it accordingly.
There we have it! Another Bookkeeping Success profile to help you manage your records effectively!
Partnering for your Success
Jacqueline Williams
Financial Strategist
Family financial season of change
Life’s cycles are wonderful & mysterious. Throughout each season we experience the changes that the earth brings us in all its wonderment & splendor. With great expectation we prepare our households. Gathering and storing throughout the fall to prepare for the winter. Clearing and planting in preparation for the spring & summer. The understanding of these events will determine our mode of preparation for them.
Spring is a time of renewal. As we clear the clutter in our home we should also clear the clutter in our financial lives. With tax season fast approaching, this is the opportune time to review & organize all records. Set up categories for all your expenditures & file your receipts based on these categories in a tickler file. The best approach is to automate your process. There are various programs, such as Quicken, Peachtree, & Microsoft Accounting, which are very user friendly and require minimum to no accounting knowledge. To manage the input of your receipts even further, utilize software for expense management such as Neat Receipts. This product will streamline the entire process and is easily integrated with other programs.
Another important financial area to review would be insurance policies & retirement accounts. For your homeowner’s /renter’s policy, spring is a good time to take inventory, especially after the Christmas holiday purchases. If your policy does not provide a manual inventory spreadsheet, create one in Excel. It’s a good idea to update your inventory sheet quarterly, to cover purchases made throughout the year. Let’s not forget auto insurance. With summer fast approaching, this is the time to consider major repairs, in preparation for summer travel. Check your policy to make sure you have adequate coverage. If your vehicle is financed and will be paid off this year, you may consider changing from full coverage to only liability coverage. Consider factors such as the overall condition of your vehicle, listed drivers, & total mileage. A change in your premium could have a significant impact on your monthly budget. As for your retirement investments, the best practice is to review your investments monthly for performance, but try not to make changes to your portfolio more than on a quarterly basis. However, expect an annual review from your insurance agent or financial advisor. As experts in their fields, your Advisor will determine the best possible balance of securities in their corresponding industries. Your investment style & history, which is generally gathered prior to you initiating the account, is the basis of all decisions made by your Investment Advisor. A good Advisor will operate under your discretion and comfort level.
What about your taxes? Because this subject can be very expansive, I will only mention briefly some important points to help you manage the “mayhem” during this period. Most people operate under the mindset to file their taxes in a manner to produce the largest refund. This is not necessarily a good idea. Don’t depend on your tax refund to cover living expenses. That’s what a savings account is for. The IRS does not pay you interest for the money it refunds to you. Technically, you are giving the IRS an interest free loan throughout the year. Wouldn’t you rather have those funds available to use at your discretion? Maintaining an effective budget will help to alleviate the stress of unwelcomed financial disasters. So, here are some simple guidelines to follow that can minimize your refund. Monitor your exemptions claimed on your W-4. The more exemptions you claim, the less taxes your pay into the system, and vise versa. If you decide to claim more than required exemptions for your situation, only do it for 6 months. Therefore, every six months you should be reviewing your W-4 exemptions. This may help to level the playing field a little. Also, be sure to maximize your deductions & tax credits. Most people miss out on common items such as educational deductions, capital losses on investments, retirement contributions, etc. The best way to gain a little knowledge and insight into taxes is to purchase a tax manual from your local book store, such as the “Dummies” series. These guides are an easy read, and clearly break down all categories of deductions & tax credits possibly available.
Well, now that we’ve cleaned out the ember s of our attics, let’s get to work on our financial success!
Partnering for your success
Jacqueline E. Williams
Financial Strategist
Knowing your customer: Get a handle on collecting receivables
From time to time in the course of conducting business, I have come across clients who refuse to pay on time, even if they have the funds available. Let’s face it, especially now, with the so called cash crunch going on, people are holding onto their funds more tightly. They find unique ways to pay on their time line instead of yours. Not only does this disrupt your cash flow, but it also strains the relationship between you and your customer. There are ways in which you can get a handle on your cash flow while still maintaining a good relationship with the customer. For instance, stress to the client to keep the lines of communication open. We know that things can be forgotten, especially in the course of business, however, it shows integrity when a client calls because they anticipate not being able to make their scheduled payment. I have the practice of reinforcing to the client how much I value their business and that I’m willing to negotiate terms during extreme circumstances. This shows dedication and that I’m not only chasing the money. Even in the beginning, when I first sign on a client, I’ll ask them certain questions to get a feel for what ideas they have about handling money. Or, if the company is established I’ll check their credit rating at Dunn & Bradstreet. Just like when you open a credit account, the creditor has checks and balances in place to make sure that you are credit worthy, the same should exist when soliciting clients for your business. If at all possible, find a way to become familiar with their payment history. Ask to contact their former provider. Find out why they changed providers, and make sure that they don’t have any outstanding invoices with that former provider. It pays to do your homework and learn the payment behavior pattern, if at all possible, of your clients.
Partnering for your success
Jacqueline E. Williams
Financial Strategist
BEST PRACTICES FOR MANAGING YOUR CUSTOMER RECEIVABLES
The best part of being in business is when your customers pay you and on time. The important thing to remember is to make sure that you are managing the receipt of these payments promptly or they will get away from you. Cash management is one of the most important functions of the financial process. The flow of money in and out of your company must be properly documented in order to have a clear precise profile of the company’s revenue stream. Managing receivables, or simply put, billing your customers and collecting the payments, should be handled daily. Although its time consuming, processing your receivables daily is necessary in order to accurately reflect your company’s financial standing.
What are receivables? Basically put, receivables represent the amounts owed to your company for goods sold or services rendered. Time and time again, I have come across businesses that don’t have a system for tracking their receivables. They know that they exist but have no idea of how much or when they are due. What typically happens is that the owner will suddenly become a bill collector when funds become scarce. To prevent this scenario from happening, it’s important to set up and maintain a proper Cash management system. How does one do this? It’s preferred to use an automated or software package to track all your financial data. Generally, when using software, the program will have well defined modules that step you through the entire process. With that said, I firmly believe that it’s just as important to know the basic theory behind what you’re doing. To educate you further, let’s take a look at some of the key components of an effective cash management system.
PROCESSING RECEIPTS
In this phase of the system, customer receipts are delivered in several manners; by check, by credit card, or direct funds transfer into the company’s bank account. Regardless of the method, to maintain internal controls, or to make sure that no one person has complete control over the entire process, this ametask can be designated to a person other than the accountant or bookkeeper. As the items are received, they should be recorded in some sort of log or journal.
DEPOSITING FUNDS
Preparing checks for deposit into the company’s bank account will involve endorsing the back of the check. The company should have a rubber stamp with the words “for deposit only” along with the bank account number, name and location. Once the back of the check is endorsed, a deposit slip should be prepared with the following information: customer name, invoice #, and amount received in payment. This should correspond with the same information that was logged in when received. If payments are received directly into the company bank account, such as credit card purchases or direct funds transfer, still the amount should be compared to what’s expected in the customer file. Once all payments have been deposited into the company bank account, a copy of the deposit slip should be maintained as evidence of receipt and attached to the customers invoice. This process is best handled by someone other than who processed the receipts. Once completed, at this point the information is forwarded to the bookkeeper for posting.
POSTING TRANSACTIONS
The bookkeeper, at this point will apply the information from the deposit directly into the appropriate journals and ledgers for the customer account. It’s important that these entries are recorded accurately, otherwise the integrity of the accounts receivable will be jeopardized.
Although the entire cash management process can be more complex, this is just a brief overview. The point is to get started and get organized.
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