CenterForProductivity.com

Category: Financial Management

Managing your finances

  • Best accounting software for MAC

    “What is the best accounting software to use for the MAC?”  

    I was asked this question this week. The person has a small business, uses a MAC and wants to use the best accounting software on the market. They want to make a smart buying decision, since face it, you live in your accounting software. They don’t want to run any Windows-based software in a parallel mode. Their small business, while simple now, is poised for grow this year. Intuit products (QuickBooks for small businesses and Quicken for personal finances) are the leader in the PC world. My criteria for “best accounting software” is well supported by a stable company, been in the market for a while and appears near the top of the list in purchases.

    While I am familiar with Quicken Essential for the MAC to handle personal finances, I am not quite so familiar with small business accounting software for the MAC. So…I did some quick research. I put the question out to my colleagues at AADMM (American Association of Daily Money Managers) and the Financial Organizing Special Interest Group for NAPO (National Association of Professional Organizers). I also did some quick searches on Google and looked to see what was selling best in MAC accounting software at Amazon.

    The answer came back…QuickBooks for MAC! (As of this writing the current version is QuickBooks 2011).

    Boy was I both surprised and happy. Surprised that someone else isn’t giving Intuit a run for their money in the Apple world and happy because I can work QuickBooks in my sleep. I like when I can refer something I know. It’s a great product for the price and can do (or be made to do) just about everything a small business needs. So, my recommendation for the best accounting software on the MAC is QuickBooks.

    Amazon has the best price, beating out the QuickBooks website. Here is the link to save you time.

    If you have other thoughts or feedback, I’d love to hear them! Post your comment.

  • Higher Gas Prices: What Can a Small Business Do?

    On September 1st, the IRS increased the mileage rate allowance to 48½ cents a mile from 40½ cents a mile. This 8-cent increase was prompted by soaring gas prices.

    At the same time Amtrak raised its fares, citing fuel costs have risen 40% from a year ago and are expected to continue climbing. Amtrak is in the transportation industry so we just accept this. But what should a small service business do? First, like Amtrak, be aware of how the cost is affecting your profit margin. Then, decide how you should handle it.

    Some options are:

    • Do nothing. Yes, you are making less money but your margins are still acceptable.
    • Increase your rates. (Typically your rates are to cover expenses like gas.)
    • Charge your clients for mileage.
    • Schedule jobs more geographically, rather than on client demand. (Clients may have to wait a few days longer to see you or charge them extra.)
    • Re-evaluate the way you deliver your services. Can you do more support via the phone or computer?
    • Refer work to other businesses in areas too far to drive.
    • Hire staff that lives farther from the office who could service those clients. Organize work so they don’t have to come into the office as often.

    Now is the time to assess your profitability. If you have to raise your rates, now is the time. Clients never like it but they will understand, especially if driving to the client site is the way they are serviced. Be clear with your clients why you’ve had to do this. When we hear that fuel costs have gone up by 40% for Amtrak, we can understand the price increase, even though we don’t have to like it.

    (This was orginally posted in 2005. While the specifc rate has changed, the issue has not. The suggestions still apply today!)

    Creative Commons License photo credit: futureatlas.com

  • QuickBooks Tip #16: Change Sales Tax Rate

    PROBLEM:

    The sales tax rate in your area is changing. You are a current user of QuickBooks® software and you need to ensure the proper rate will be applied to all sales.
     
    SOLUTION:
     
    To ensure everything flows smoothly and accurately be sure to execute all three steps!

     1.      Add the new Sales Tax Item to the Item List (Lists > Item List).

    • The Item Name will have to be different than what you are currently using. Consider putting the sales tax % on the Item Name. An example is “Sales Tax-OC (8.75%)”.
    • This can be done in advance of the date your sales tax will change.
    • If you use more than one sales tax item, be sure to add them all in.
    • You cannot delete or change the rate on your existing Sales Tax Items because you need the Item to properly calculate your sales tax return.

     
    2.      Change your Sales Tax Preferences to use the new Item.

    • Go to Edit > Preferences > Sales Tax > Company Preferences tab.
    • When you create any sale (Invoice, Sales Receipt) or credit memo, this Sales Tax Item will now be used as the default.
    • This can be done in advance of the date your sales tax will change ONLY if you will remember to change the Sales Tax Item on any sale. If you won’t, write a reminder to yourself to change this on the date the sales tax rate is effective.

     
    3.      Make the old Sales Tax Item inactive on the Item List.

    • Go to the Item List. Double click the old Sales Tax item and click the box ‘Item is Inactive’.
    • Do this on the date the new Sales tax is effective!

     

    Don’t forget to change any shopping cart systems you may also be using!

    Want more QuickBooks tips and techniques? Check out our Effective Results Club.

    (This was originally posted in 2009.)

    Creative Commons License photo credit: Horia Varlan

  • Year end checklist for a small business

    Because many of you have asked, here are some things every small business should look at as the year end approaches and also to close out the year.

    Things to do before December 31

    • Look at your Profit & Loss report. Where do you stand? If you have a larger than expected profit, are there any major purchases you should make now that can be depreciated? Make sure you have the cash. Talk to your accountant if you are not clear of the depreciation rules. 
    • Verify loan accounts and cleanup them up if necessary.
    • Verify your 1099 information is setup properly in your accounting system. If you don’t have proper information from each vendor, ask for it now, then create a form to use every year. Need help making this happen in QuickBooks? Just ask us.
    • Begin to think about year end bonuses or special gifts. Will you give these this year or in January? It depends when you write the check.
    • Look for fringe benefits you should report on W-2’s. Some of these could include health & life insurance, transportation subsidies, moving expense reimbursements, educational reimbursement programs, and employee loans you’ve forgiven.
    • Take a physical inventory of your products and make adjustments in your accounting system as necessary.
    • Write a list of all the company’s major accomplishments for the year. Be prepared to share this with your staff, they will appreciate it.
    • Write out your goals and plans for the next year.
    • Create budgets for the next year if you work on a calendar year fiscal basis.
    • Check all of the links on your website to make sure they are active.

    After January 1st

    • Reconcile all accounts – bank and credit cards – in your accounting system.
    • Verify you’ve made all entries in Petty Cash. If you made the purchases last year, make sure to use that date.
    • Verify you’ve made all entries for items you’ve paid for with personal funds.
    • Print year end reports. At a minimum you should have a Profit & Loss Statement and a Balance Sheet. I also like to see Customer Sales figures sorted by total dollars so I know who my largest customers were.
    • Make depreciation entries (may need help from your accountant). You should have the following information on each item: date of purchase, purchase price, make, model, serial number, year, and whether it is new or used.
    • Make any adjusting entries for accruals of payroll tax liabilities or pre-paid expenses (get help from your accountant).
    • Print and mail payroll forms if you do it yourself (W-2, W-3, 940, 941).
    • Print and mail 1099’s to independent contractors (by 1/31). Don’t wait in case there is an error.
    • Print and mail 1096 to IRS (by 2/28).

    See, not so hard when you have a list!

    (This article was first posted in 2005.)

    Creative Commons Licensephoto credit: Jacob Bøtter