quickbooksproadvisor Archives - Merit Account Services

Why is someone referred to as “just a bookkeeper”?

Susan Fisher — Thu, 07 Mar 2024 17:29:42 +0000

Why is someone referred to as “just a bookkeeper”? Is it because there are varying degrees of education, skills, experience and time in this occupation?

For instance, is someone who enters transactions in the general ledger with no knowledge of the principles of accounting or the practice of consistency a bookkeeper or an admin? An office manager may have some accounting knowledge, but bookkeeping is probably not their main responsibility. Does the director of a non-profit have the time to devout to properly manage the financials of the organization?

In other words, why is a true Bookkeeper, with the proper education and experience, so valuable to a business?

They are the connection between

The daily transactions, the general ledger, and the resulting reports

The bookkeeper is responsible to ensure that all transactions have been correctly entered and classified in the general ledger so they result in accurate financials.

The business owner & management and utilization of those reports

The bookkeeper ensures the accuracy and timely delivery of all reports that the owner and/or management need to properly manage the business, forecast growth, and make business decisions.

The business and its accountability to interest parties

The bookkeeper can provide the necessary financials statements as requested by partners, board members, lenders and investors.

The accountant and the documentation needed to complete tax filings and provide advisory services

The bookkeeper will perform the year end review to ensure the accuracy and consistency of the financial records and that details on all transactions are available to allow for seamless tax preparation.

The business owner and their accountant

The bookkeeper will provide the information for a comprehensive review of the business by the accountant in order to provide the best tax advisory services to the business owner.

Without a properly trained, and better yet licensed, bookkeeper involved in a business, there will be gaps in these connections.

Do you have good connections in your business, or does it feel like you are flying on a wing and a prayer? Find out how hiring a Certified Public Bookkeeper can provide solutions that helps your connections work together.

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Welcome to February 1st!

Susan Fisher — Thu, 01 Feb 2024 14:33:57 +0000

Welcome to February 1st – did you get your 1099s filed on time?

If it happened late in the day on the 31st you are probably saying “never again” or “there has to be a better way”. You are not wrong! Most of the delays in filing 1099s come from not having W9s from your contractors. Change your daily workflow to fix this before it becomes a problem again next year.

Get the W9 upfront

The best practice is to ask for a W9 with the signed contract to perform work. Don’t worry about the amount to be paid. Having a W9 allows you to set your contractor up correctly in your accounting software. It also helps to void duplicate entries, and verify the information you may already have is still correct. You want to be sure that when you issue the payment it is made out correctly based on the information provided.

Get the W9 with the invoice

The next best solution is to have the contractor submit their W9 with their invoice to be paid. If you still don’t have one, use some leverage by holding the payment until the form is received. As you may already know, once that payment has changed hands, the chance of receiving the W9 goes down dramatically. You don’t want to be heading down the same road again.

Start looking for missing W9s before year end

Finally, do a 1099 review December 1st each year. This allows plenty of time to follow up with any W9s which have slipped through the cracks. At this point, it is best to focus first on the contractors who meet the 1099 threshold, so they don’t delay your filing.

Making these simple changes to your business’ workflow will save you from having to pay for countless hours of follow-up work. It will also relieve stress for you and/or your accountant when it comes time to file 1099 again.

#bookkeeping #accounting #smallbusinessowners #1099s

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Tax Season is Here!

Susan Fisher — Tue, 16 Jan 2024 14:34:56 +0000

The beginning of tax season is here – are you ready to send your financials to your accountant?

If not, why?

You don’t’ have the organization?

You don’t have the knowledge?

You don’t have the time?

Don’t panic, there is still time to turn this around and get it done

Let me show you ways to have good operational organization, train you in the basics of achieving good and timely financials, or just take the whole bookkeeping task off of your plate and let you get back to your business.

#bookkeeping #accounting #smallbusinessowners #taxtime

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Happy New Year

Susan Fisher — Mon, 01 Jan 2024 14:51:51 +0000

Happy New Year!

You have probably made resolutions to be more health conscious but what about the health of your business? Is it organized, efficient, and timely or are you months behind having any useful data? With the added stress of tax season looming on the horizon, now is the time to get your financial house in order and create a well-managed strategy to guide the overall well-being of your business.

First, you need to review your bookkeeping workflow.

How do you manage daily transactions and their corresponding records?

How are they posted to your accounting program?

Do you know how to make the most of the reporting capabilities of that program?

Properly setting up your workflow and accounting program to take advantage of added applications is key to having organized, efficient, and timely bookkeeping.

Then you can implement these new financial practices to

Increase profitability.

Improve cash flow.

Enhance long-term stability by setting clear financial goals.

Create a detailed budget to guide your business decisions.

Regularly review financial statements to identify areas for improvement.

Allow for better risk management.

Improve the ability to navigate economic uncertainties.

Whether you are catching up with 2023 or making improvements for 2024, now is the time to integrate your business’ financial health into your New Year resolutions!

The best way to achieve those goals is to have someone guide you with comprehensive bookkeeping solutions, support, and services. Contact me to get started and let me be your partner in financial excellence.

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Signs You May Be Ready to Hire a Bookkeeper

Susan Fisher — Tue, 17 Oct 2023 16:02:46 +0000

Signs you may be ready to hire a Bookkeeper –

1. You are spending too much time keeping track of your business’ finances:

A Bookkeeper can take that work off your plate and give you a better work/life balance.

2. You are losing control of deposits, invoices, and receipts:

A Bookkeeper can create organization from chaos by showing you how to implement systems, workflows, and best practices to properly record, categorize, and store your financial information.

3. You are confused by transactions and categories:

A Bookkeeper can help you understand debits & credits, payables & receivables, payroll, taxes and personal vs business expenses and how they should be recorded.

4. You are overwhelmed by your financials:

A Bookkeeper will help you understand your financial statements and how to use that information to run your business.

5. You need help planning for the future:

A Bookkeeper can provide accurate, reliable, and timely information to help you and your accountant chart the proper path for your business’ success.

And even if you still want to do the day-to-day bookkeeping yourself, a Bookkeeper can provide the training, support, and supervision to reduce the time you spend, increase the accuracy of your work, provide monthly oversight, and help improve the management of your finances.

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Take the time to know how to use QuickBooks

Susan Fisher — Tue, 19 Sep 2023 16:14:36 +0000

I cannot emphasize enough the importance of having a firm grasp of QuickBooks and maintaining consistency in its use.

QuickBooks provides a comprehensive platform for recording financial transactions. With proper knowledge and consistency, you can ensure that every detail is accurately captured and reported but the quality of those reports will only be as good as the quality of what is entered.

QuickBooks is like driving a car. At first it is overwhelming, but by learning not only how to drive it and its operations under the hood, but the rules of the road you take it on, it becomes second nature.

Understanding all the processes of QuickBooks is crucial but having a working knowledge of the basis of accounting can help you understand what is happening in the background. This will guide the data entry process in a correct direction to achieve comprehensive reporting and accounting compliance.

To bring your use of QuickBooks to its full potential consider

1. Investing in formal QuickBooks training to enhance your knowledge and skills. Many of the processes and features you will learn will save time and help to reduce errors which will more than pay for itself.

2. Make it a routine to enter financial data promptly and consistently to ensure up-to-date records. If more than one person in your organization uses QuickBooks, develop a workflow so that everyone is on the same page. Don’t allow too many cooks in the kitchen as this will only cause confusion and errors.

3. Consult with a bookkeeper or an accountant for professional guidance and to address any complex financial situations. A monthly review will spot errors and issues and allow them to be addressed promptly to avoid recurrence in the future.

Your knowledge of and consistency in using QuickBooks will allow you to utilize this powerful tool effectively, make informed decisions, improve efficiency, and ensure financial compliance. If you need further assistance or have questions, please don’t hesitate to reach out – I am happy to be your partner in financial excellence.

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The Davis-Bacon Wage Act

Susan Fisher — Tue, 22 Aug 2023 16:19:05 +0000

Understanding the Davis-Bacon Wage Act and prevailing wage requirements is crucial for contractors venturing into government-funded projects. The Act mandates that contractors pay prevailing wages and benefits to laborers and mechanics on federal construction contracts.

Davis-Bacon Wage Act: This federal law ensures fair wages for construction workers on public works projects. It applies to federal, state, and local government contracts exceeding $2,000.

Prevailing Wages: This is the predetermined wage to be paid the workers in a specific trade within the locality where the project is located. It aims to prevent unfair wage competition and ensure a level playing field for contractors.

Certified Payrolls: Contractors must submit detailed records of workers’ hours, wages, and benefits paid. This transparency ensures compliance and prevents underpayment.

Key considerations for contractors on these projects are:

Research and Understand: Thoroughly research the prevailing wage rates for your trade and location prior to bid submission. The U.S. Department of Labor (DOL) provides valuable resources, including Wage Determinations Online.

Accurate Record-Keeping: Maintain accurate records for each worker, including hours worked, wages paid, and benefits provided. Use DOL-prescribed forms or certified payroll software.

Classification Accuracy: Correctly classify workers based on their trade to determine the appropriate wage rates. Misclassification can lead to penalties.

Compliance with Reporting: Timely submission of certified payrolls is crucial. Late or inaccurate submissions can result in penalties and project delays.

DOL Resources: Utilize DOL guidance and resources to navigate compliance. Consider reaching out to local Wage and Hour Division offices for clarification.

Prevailing wage requirements ensure fairness in government projects so for contractors new to this program, diligent research, accurate record-keeping, and adherence to reporting guidelines are essential. Compliance is a must to avoid penalties and establish a reputation for quality work in this specialized sector. Researching DOL resources and seeking expert advice can prove beneficial for a successful venture into government-funded projects.

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