Tax season: Precaution is better than cure

The biggest misconception regarding the tax season is that all the work of filing taxes is done only during the tax season. With such a blurred vision of the tax season, most of the people find this period quite irritating, hardworking and complex.

The tax season brings a lot of chaos, dealing with numbers, finding ways to save taxes and meeting the deadlines. While many businesses pass this time period like any other season of the month, others consider it as the biggest hurdle of their business life.

Every year, new rules and laws are brought into the world of tax filing and you need to be updated to all such changes. There are changes in the limits of saving taxes, things which can be considered as expenses, and lots of other things. If you are not updated with all these changes, then you can miss out on some of the most precious benefits offered by the current tax season.

IRS is the body behind the tax and you should keep an eye on its website for the latest updates. From the deadline to the new changes, everything is made available on the website of the IRS first and then on any other platform. So when the tax season is around the corner, you should start checking the IRS frequently or save it as a bookmark or make it as your homepage in your browser.

But tax season is not about starting your tax filing process when the deadline is knocking at your door. In such situations, you may find yourself in a situation where you will no other option that undergoing the penalty otherwise; filing wrong taxes can put you in serious trouble.

The preparation for the tax season begins as soon as the last season ends. Regular and accurate bookkeeping by using cloud accounting solutions such as QuickBooks hosting, reconciliation of bank accounts, timely completion of all your accounting operations and regular cross-check, these are the things which you have to practice throughout the year in order to pass the tax season like any other period of the year.

With such ideal accounting practices, you will be prepared with an ideal book when the tax season starts, and if you want to save money on consulting tax experts then you can use tax software solutions in the cloud like the ATX hosting or the Lacerte hosting.

Another thing to keep in mind during the tax season is to use the cloud accounting solution in order to make things easy for you. No one likes to deal with numbers and therefore they want to get rid of it. The cloud accounting solutions such as QuickBooks hosting and ATX tax hosting can help you to minimize the hassle during the tax season as all the forms in these software solutions are updated and requires minimal manual entry. This way you can also be sure about the accuracy of your taxes while eliminating the chances of not being able to meet the deadline.

Let’s understand the reports of QuickBooks desktop in detail

QuickBooks is a smorgasbord of advantages and benefits. If you are using QuickBooks in your company then you are on the right path to making the most of the latest technology. Every year, the QB is updated with improvements, additions and new features, which keep it in the race of technological advancement.

Out of the wide array of benefits offered by the QB, the reports generated in it are very useful for a business. In addition to being in-depth and a single point for your different data, they are also very much easy to understand.

So, in this blog post, we will be looking at the reports in QuickBooks in detail.

How are reports generated?

The reports in QuickBooks are generated on the basis of a particular set of instructions known as a Report set. QB uses this set of instructions for extracting the information from the data file which is then presented as a set of transaction lines.

The report set includes the following things:-

• Default filters
• The Display and Filter tab’s settings
• The hard-coded structure of reports in QuickBooks
• And, the embedded filters

A concept of source and target is also used by QuickBooks in order to generate reports. The concept of source and target is used for applying accounting principles and processes.

Some report groups available in the QuickBooks desktop

• Sales reports
• Customers and Receivables
• Inventory reports
• Banking reports
• List
• Vendors and Payables
• Company and financial 
• Jobs, Time and Mileage

How to set preferences in reports?

By using the flexibility of setting preferences, you will be able to customize the reports and make it a perfect fit your business. Here is the step by step guide for setting up preferences in QuickBooks.

• First of all, click on Preference from the Edit menu.
• Now in the preference window, choose Reports, and Graphs located on the left side and then click on My Preference tab or the Company preference tab.
• By choosing the My Preference tab, you will be able to customize how QB will work for you. The changes which you will make on this account will be applicable to your account only. 
• By using the Company Preference tab, you can set a default report preference for all the users in QuickBooks. But if you want to make changes in the Company Preference then you need to be the QuickBooks Desktop administrator. 

How to customize a report?

You can easily customize all the reports generated in QuickBooks to match your need. You can customize the data, add or delete columns, add or remove the information on the footer/header, and do lots of other things. In order to customize a report, you need to follow the below- mentioned steps:-

• First of all, run a report
• Then click on the Customize Report in the Report window
• Now, on the modify report window, move to the tabs which you are planning to update and then click on OK when you are done. 

You get the following four tabs in the customization option:-

·         Display Tab

·         Filters Tab

·         Header/Footer Tab

·         Fonts and Numbers Tab

Other than the above-mentioned functions of the report in QuickBooks, you can also add comments to the reports, create, access and modify memorized reports, setup and modify scheduled reports and combine reports from two or more company data files. 

Important things to consider while choosing a QuickBooks hosting provider

The decision of moving QuickBooks from your local desktop to cloud can prove to be one of the biggest steps towards matching your pace with the technological evolution. Although, the QuickBooks on your local desktop is not less than a one-stop shop for all your accounting needs but hosting it in cloud can convert this one-stop shop into a  magic wand for your firm. With limitless benefits of cloud, like anywhere, anytime accessibility, multi-user function, automatic updates and backups, you also get an ultra-secure environment to work in.

But big steps and changes in a firm should always be backed up by a well-informed decision and that’s why choosing the best QuickBooks hosting company is as much important as your decision of moving to cloud is. A service provider will not only help you to unleash the power of cloud but it will also allow you to work seamlessly on your software while on the other side, a bad hosting provider can turn your dream of moving to cloud into a nightmare.

That’s why in this article, we will be looking at the important points which you need to consider while choosing a QuickBooks hosting provider.

Data Security

Data security is one of the most important concerns for businesses which are going for the cloud.   That’s why, before putting your accounting software and vital data into the cloud, make sure that your chosen service provider follows security standards like SAS 70. It is also important to ensure both physical and virtual level of security maintained by the service provider. A safe and secure hosting environment will allow you to work without worrying about data loss, data theft, data breach, etc.

Price

There are several hosting providers in the market and all have different pricing and packages. Although the hosting solution itself is a cost-effective step but choosing the most economical hosting solution is also your responsibility. You can easily search for various QuickBooks hosting providers on the internet and then compare their prices and packages which are clearly mentioned on their website.

High Uptime

One of the most advantageous features of cloud hosting is anywhere, anytime accessibility, but if there is degraded server performance, then it can lead to no access to your QuickBooks data. That’s why a high uptime by your service provider is very much necessary for working seamlessly on your files in cloud. You should make sure that your service provider houses technically upgraded and advanced servers in the data center.

Customer Support

While choosing a hosting service, you should always check their quality of customer support as it is one of the most important parameters to analyze a service provider. There should be 24/7 customer support with quick fixes to issues and fast handling of queries. If your chosen service provider has all these things, then it is ideal to go for it.

Data Backup

You should make sure that your hosting provider maintains routine backups of your file and folders at a remote server so that in case of any miss happening, your data can be recovered easily.

Online review and ratings

You can also check the genuine reviews and ratings given by actual users on various websites. These reviews and ratings will give you an overall idea about the performance and quality of service provided by the hosting provider.

With great powers, comes great responsibility and that’s why with so many QuickBooks hosting providers, it becomes your responsibility to choose the best one. You can use the above-mentioned parameters to analyze the available hosting providers and then choose the best one.

How can you make your accounting life easy with QuickBooks Pro?

Many businesses consider accounting as a burden for them while others don’t even consider this vital part of a business in their list of important tasks. While there is nothing much can be done for the businesses who take accounting lightly, but for all those businesses that consider accounting as a burden, the very famous QuickBooks Pro can act as a savior for them.

In the world of accounting software, you will find many players as the accounting market is very competitive but if you will look through the eyes of an expert then you will see a clear winner in this tough race of competition and that is QuickBooks Pro.

While QuickBooks Pro hosting is the best solution for the business, but even if you are using the desktop version, it will furnish many advantages for you and will make your accounting life very easy and smooth.

So, let’s quickly jump on to the advantages of the very popular and used accounting software QuickBooks Pro and see how it can make your life easy.

Easy Expense management

QuickBooks Pro offers various tools which can be used for managing the expenditure of a business. The very fruitful software includes tools for keeping an accurate track of outstanding bills and payments like using the software for printing checks from your software. There are other different tools like payroll management, which includes taxes as well. Besides, you can also track your inventory, regardless of its location.  

Proper Documentation

The automated documentation is a very useful and beneficial tool for business as it keeps things managed and with proof. The most commonly used document types like reports, invoice, and business plans are offered as a template in the QuickBooks Pro software. The customizable templates of the software can also come in handy for business with an option to use the default templates which fit perfectly according to various businesses or edit it to match your specific needs.

Better income management

Most of the data that makes up to your software is generated automatically, regardless of the industry in which your business is dealing with. Through QuickBooks Pro, you can easily automate your Point of Sales and manage different transactions like credit and debit card payment which will also include sales tax and invoicing. You can also easily integrate your QuickBooks Pro with the mode of your payment acceptance in order to capture the payment data and use it in the accounting analysis and reports.

Accurate preparation and planning

If you are considering QuickBooks Pro as just an accounting software for solving your accounting problems, then you need to reconsider its feature as it can play a central role in your business planning and preparation. All the data stored in the software holds great value and it uses these data for generating in-depth reports which can be fed into your long-term plans and goals.

So, if you are confused while choosing the best accounting software from the long list available in the market, then you should blindly go for the QuickBooks Pro hosting as it serves the accounting need of all size and type of businesses.

How to use the QuickBooks Multi–currency Feature?

QuickBooks provides the most effective accounting solution as it has some of the most useful tools which make the life of accountants easier. And one such feature of QuickBooks which is unique and acts as a savior for especially online business is the multi-currency feature of QuickBooks.

The multi-currency feature was introduced in QuickBooks in the year 2009 and it is really helpful for online businesses that have to deal with various forms of currencies as they are present all over the globe.

So, in the blog post, we will be looking at how to use QuickBooks Multi-use feature.

What is the benefit of multi-currency feature of QuickBooks?

With the help of multi-currency feature, you can easily track all the income and expenses of multiple currencies of various countries and you can also track previous exchange rates.

How to enable multi-currency in QuickBooks?

• Choose Preferences from the Edit menu of QuickBooks
• From the left side click on Multiple Currencies
• After that click on Company Preferences and click on Yes, use more than one currency
• Then from the drop down choose your Home Currency 

How to add foreign customers and vendors?

• Go to the Customer/Vendor center to create foreign customers and vendors. If there is already a name present then assign a bit different name to the foreign customers and vendors which you have created.
• Move to the Customer Menu and choose Customer Center
• Now from the drop-down, choose New Customer 
• Appoint a Customer name and Currency 
• Click ok

Important Notes

ü  After turning on this feature, your existing customers and vendors will be allotted to your home currency

ü  For the names which have already recorded transactions, the currency can’t be changed

How to add foreign currency?

• Choose Chart of Accounts to the list menu
• Right click anywhere and choose New
• After that choose the suitable Account type and assign a name
• Then click on Save and then Close 

Important Notes

ü  Currencies which are assigned for the accounts such as Credit Card accounts, Vendors, Bank Accounts, Customers, Accounts Receivable, Accounts Payable.

How to update your exchange rate?

• Move to the list menu and choose Currency List
• Then choose Activities button and select Download New Exchange Rates

How to manually enter exchange rates?

• Choose Currency List from the List Menu
• Now Double Click to choose the Currency 
• Then, you can update the Currency Exchange Rates for particular dates in the Edit Currency Window

 Important thing to know before using the multi-currency feature

ü  The feature of multi-currency feature is not reversible. So once it is turned on then you can’t reverse the process

ü  You should firstly make a backup of the files in case you want to turn back to the single currency feature

ü  After turning on the multiple currency preferences choose the other currency which you want to track

So, use the above-mentioned easy to implement process for enabling the multi-currency feature of QuickBooks which can prove to be very fruitful for you and especially if you are dealing with online business.

   

How can accounting firms tackle competition?

Due to the increasing number of players and widening services, accounting firms are now facing a cutthroat competition, which on one side is resulting in the enhancement of services for the clients while on the other side, is leading to a very strenuous life for accounting firm owners.

The increasing competition has now made the accounting firm industry a very low margin, a high lawsuit involving place where every dollar decided your number of clients. But problems itself comes with a solution and if you have the attitude of finding solutions in every situation, then you will succeed, otherwise, even an opportunity will look like a problem to you.

So, in this blog post, we will look at some tips which can help accounting firms to tackle the highly competitive market and stay ahead of all the players.

1. Embrace the software era

Accounting firms are no more restricted to carrying out lengthy and cumbersome accounting operations on paper and pen for various reasons like, increase in cost, difficulty in management, damaging environment, the risk of loss.

The era of software for business is in existence for long and if you are still not using it, then you have a long road to cover in order to overcome the obstacles of competition but better late than never. So adopt accounting software like QuickBooks in order to make your accounting quick, accurate and automated.

2. Move to the cloud

Cloud has now become a very powerful tool for all the business and it can really become your best partner in your journey to being on the top of your industry. Being an accounting firm, you must be aware of the challenges faced by firms using software on the desktop like the risk of safety, downtime, restriction on access, but all these hurdles can be easily wiped out with the help of cloud accounting solution like

3. Utilize Networking

If you think that by being dependent on geographical location, you can expand your business, then you need to upgrade your strategy. You must be having a strategic plan which you can easily implement on the entire firm and considering networking as a big part of that strategic plan is always an ideal approach.

In today’s era, accounting services are not just limited to bookkeeping and filing taxes as the clients demand much more than that and for satisfying your clients with your services, networking can prove to be a powerful tool.  Go to networking events, try to connect with people, look for the challenges faced by them and try to summarize the perfect solutions.

4.  Focus on satisfied clients rather than the number of clients

One of the biggest gaffes made by accounting firms is that they concentrate only on enhancing the list of their number of clients and that’s why they miss out on making their existing clients satisfied. If you have a small pool of satisfied clients then it will be much more instrumental in comparison to a firm which is having a large number of unsatisfied clients.

5. Subsume technology

If you are not able to embrace the latest technological updated in your industry, then you must give up on your dream of being on the top as utilizing the latest technology is a major part of growth for most of the businesses. So use the latest technological advancements and let your company flourish in the best possible way.

Being an accounting firm is not an easy task as it puts you in cutthroat competition, low margin industry and high demand from clients. So in order to survive in such a challenging industry, you must go through the unique way and in this way, you can use the tips mentioned in this articles.

Collaborative accounting: An exemplary form of accounting for small businesses

Evolution is a part of nature. Even after shaping a concept or thing to perfection, it keeps on evolving with time and technology, and accounting is no exception to it. From paperwork in the form of hard copy to accounting software, accounting has gone through a journey of drastic changes, modification and evolution. And still, with the passage of time, new and improved features, concepts and technologies are being introduced in the accounting industry and one such addition to accounting is collaborative accounting.

So let’s go through the concept of collaborative accounting through this article in detail, so that you can know what this form of accounting has to offer for your business.

What is collaborative accounting?

Collaborative accounting is simply the activity of one or more than one person involving in the accounting function. But with this definition of collaborative accounting, you might be thinking that the above-mentioned practice of accounting is not new as all the firms have one or more than one  person involved in their accounting function but the new breed lies in taking the concept of collaborative accounting by using internet and making it a backbone of collaboration.  

One of the best examples of collaborative accounting is the working of CPAs and their client on a real-time basis, even if they are not at the same location. Whenever an entry is made by the client, their CPAs are able to see the changes on a real time basis and thus they make the required changes to it.

What are the benefits of collaborative accounting?

Real-time collaboration

The real-time collaboration allows the users to minimize the need for sequential processes and thus multiple users can work on the same file, sitting at a different location. This leads the users to be updated with the latest changes which result in timely reporting and analysis.

Cost Saving

This form of accounting also helps the firm to save cost in two different ways. First, since the collaborative accounting is all cloud-based, there is no need to install IT infrastructure in your premise and even the cost of hiring IT staffs to maintain and manage the hardware and software is wiped out. The next form of cost saving comes with improved efficiency. With real time updates, no user has to wait for the information and they also skip the cumbersome process of moving the information to another user. This result in improved efficiency and with more productivity within the same time, a great amount of money is saved.

Enhanced accounting and reporting process

Small businesses have limited resources and thus increasing the efficiency of  any department within those limited resources becomes a tough challenge for them. But with the help of collaborative accounting, small business can easily enhance their accounting and reporting process which will add a great value to their overall productivity of the business.

How to build a collaborative accounting environment?

One of the ideal ways to build a collaborative accounting environment is through QuickBooksHosting. This fully-functional accounting software offers a wide variety of accounting tools which are user-friendly in nature and the software can be hosted on the cloud server also. For example, if you go for QuickBooks Enterprise Hosting, then all your data and the software will be stored on the cloud server.

After hosting the software, you need to set QuickBooks multi-user mode, through which different users will be able to work on the same file at the same time with real-time updates.

QuickBookshosting for small business is the best form of collaborative accounting. Through the fully-functional software and with the power of cloud, SMEs will be able to shape their accounting tasks in a perfect way.