Household Accounting

Household accounting can be overwhelming. But neglecting it can cost you financially and cause unnecessary stress. We are honored to offer household bookkeeping services to our clients. We don’t take for granted that our clients invite us into their home and entrust us with their personal finances. Our goal is take the stress out of household accounting and provide peace of mind. 

We ensure all bills are accounted for and paid timely. In doing this, we also review the bills for any inconsistency or mistakes. We make sure all bills have arrived and call to request any expected bills if they do not arrive on time. All supporting documents are organized and filed correctly for accurate record keeping. We review bank and credit card statements for any unusual activity.

Some of our clients may use an accounting software such as Quicken or Mint to track their finances. We are proficient with the major accounting software platforms. Utilizing these tools can be a great help. We take care of importing and coding all transactions. This information can help track budgets and produce helpful reports. With this information we can answer such questions as, “How am I spending my money?” and “Could I be saving and investing more?”.

We are also available to advise on matters.  Especially as our clients grow older, their needs may change and they can relay on our years of expertise to help guide them. For instance, they might need to change insurance plans or take an additional plan to meet their current needs and anticipate what they will need the coming years.

We work closely with CPA’s and financial advisors to form a cohesive team with our client’s best interest at the forefront. Since we are carefully tracking expenses and organizing documents throughout the year, we make the process of gathering information for tax returns seamless. 

So let’s take the pain and stress out of your household accounting by utilizing our services. We truly believe our services are a gamechanger for our clients.

Remote vs. Onsite Bookkeeping

One of the top questions we are asked when meeting with a new client is “Do you work onsite?” There is usually a note of uncertainty in their voice when they ask. This is because many bookkeepers prefer remote service. And who wouldn’t? Most of us love the idea of working comfortably at home. And with the serge of cloud based software, this is more and more possible. 

But is this best for the client? The answer is it just depends on the situation. Think about the responsibilities of the bookkeeper and whether they need to access any files, mail, checks, etc. at your office. Then consider how you work best. Do you respond well to emails and calls  or do you prefer in person meetings?

As a company, we are committed to flexibility so we can accommodate all the needs of our clients. So as a business owner, you must be honest with yourself about what is best for you. A bookkeeper should make your life easier, not harder. So decide if onsite, remote or a combination is best for you. And make sure to choose a bookkeeper who is flexible with the working situation that is best for you. As your business grows and changes over time, you will be glad you chose a bookkeeper who is accommodating and puts your interest first. 

Mid-Year Check In

As we’re approaching the mid-year mark, this is an ideal time to check in on your books. It’s very easy to be so involved in the day to day, that we ignore the big picture until yearend. By taking a look now, it’s easy to see where something might be off and avoid regrets at yearend. Below are a few things that are helpful to review.

-1099 contractors. Do you have all of their information?

-P&L Report. Is a category much different than you would expect? It’s possible you’re overspending now or perhaps categorizing an expense to the wrong account.

-Accounts Receivable. Are there any open invoices you didn’t expect?

-Net Revenue and Projections. Are you on track to hit your projections? If not, get to the bottom of why. 

Look at reducing expenses, raising revenue or adjusting your projections to a more reasonable number.

By taking a look at these areas now, you will stay in sync with your business, keep your books in order and reduce the pain out of tax prep. 

www.myatlbookkeeping.com

Hiring a Bookkeeping Service-The Perfect New Year’s Resolution!

Perhaps you are a business owner who knows it’s time to bring in a bookkeeper but you just aren't sure when to pull the trigger. The perfect time is right now! The start of a new year is the ideal time to hire a bookkeeping service. Being able to start at the beginning of the year means there isn't an up front time commitment to catch up prior months. It’s also a great time for the bookkeeper to assist setting up accounts payable and receivable systems. As business owners, the start of a new year is also when we commit to growing our business and expanding. What better way to do this than by freeing up the time you've spent doing your own bookkeeping?  Let the experts take care of the books, while you take your company to new levels.  So while you’re pondering how to improve it 2014, make hiring a bookkeeping service (and if you’re in Atlanta, specifically BBW Bookkeeping) your top resolution!

Who Gets a 1099?

Before you know it, January will be here and that means it will be time to issue 1099s. As a refresher, below are some general guidelines on who to issue 1099s to:

• All sole-proprietors/independent contractors paid more than $600 in fees (Not Employees)
• LLCs paid over $600 with the exception of LLCs who are taxed as a C or S Corp
• Attorney Fees
• Rent over $600

A few other reminders include:

• Make sure to buy 1099s for the current year. The year is printed on the forms and previous years are not accepted by the IRS.
• Buy 1099 forms early. You can buy them from any office supply store but they tend to run out quickly.
• Complete the form per the instructions. There are separate boxes for rent, attorney fees and contractor fees.

We suggest looking through your books now to make sure you have W-9s for everyone you are required to submit 1099s for. If any information is missing, request it as soon as you can. In case of an audit, you are fined per 1099 not filed. As a good rule of thumb, request a W-9 for everyone you write a check to just to be safe. 

The Start-Up Part 1

We often get calls from start-ups who have no idea where to begin with their finances. One of the common mistakes we see are not properly setting up the business and not opening a business checking account. We’ll discuss the business set up later and today will focus on the importance of setting up business checking.
Setting up a separate business account is vital. Tracking income, expense and owner’s draws are a nightmare when mixed in your personal account. This makes understanding if your business is profitable almost impossible. And when your bookkeeper does need to set up your books, it will much more time-consuming (read as costly to you unfortunately). Your best bet is setting up a business account from the get-go. If cost is the deterrent, many banks offer a free account for the first few months and some are completely free. Below are a few we like for the cost:

1.       1. Fidelity-Free checking with an opening balance of $50. https://www.lionbank.com/banking/business/checking

2.      2.  PNC-Free checking with up to 200 items a month and $100 to open.
https://www.pnc.com/webapp/unsec/Solutions.do?siteArea=/pnccorp/pnc/home/small+business/checking/free+business+checking

If you are using their merchant services, some banks such as Wells Fargo (https://www.wellsfargo.com/biz/products/accounts/checking/0 and Bank of America (https://www.bankofamerica.com/smallbusiness/checking-accounts.go waive the fees.

Of course, it might be easier for you to open a bank where you already have accounts even if there is a fee. But the important thing is to open one! It will make your bookkeeping much cleaner even if you don’t engage a bookkeeper until later. Many bookkeeping software such as QuickBooks offer bank download which is a real timesaver. But this only works if your accounts are separate. 

Choosing a Bookkeeping Software

Many times when we start working with startups, they have a lot of questions on choosing the best bookkeeping software. There are obviously a lot on the market and there are pros and cons on all of them. It really boils down to your business. While we use a variety of industry specific software, QuickBooks is still our go to for most situations. But even QuickBooks has several options to choose from. There are the desktop versions which include Pro, Premiere and Enterprise. Most small business can get by with Pro which covers all of your basic bookkeeping needs. Premiere can be customized for your specific industry which can also be helpful. A good example of this is construction companies that deal with a lot of purchase orders and change orders. If you’re dealing with a lot of inventory to track, Enterprise might be a good option. But be aware that the more sophisticated versions come with a higher price tag. An option we really like is QuickBooks Online. It’s a great option when you want your books at your fingertips at home, the office or while traveling. It’s also great for a remote bookkeeper or a bookkeeper that only comes in a limited amount of time. This allows your bookkeeper to get you any information you need without a trip to the office or having to wait until your next appointment. This also helps several members of your team to be able to work together on your books without dealing with servers or logging in remotely which can be cumbersome. We’re also big fans of the automatic download from your bank and credit cards. But be aware we’re still seeing some kinks from time to time with this function. But the time savings makes it worth it. Check for discounts on the monthly fees that come with many warehouse memberships such as Costco and Sam’s. Another great bonus with QuickBooks is that many versions import from one to another so they can accommodate your business changes.

Of course your bookkeeper can be a great help in helping you choose the best option.

They have an app for that!

Most business owners will tell you there just isn’t enough time in the day. And while we can’t create more time, we can work smarter. One way to do this is to utilize some great apps to help you organize your business’s books. Here are a few that are helping us make the most of the day:

Harvest-This is a great time tracking app for when you’re working on various clients or projects. With the simple click of a button you can track your time throughout the day. It allows you to bill from the program or sync with QuickBooks. A great tool to help your cash flow by billing as much as you can! (http://www.getharvest.com/)

Intuit GoPayment-With a small unobtrusive plugin to your smart phone, you can accept credit card payments on the go. Great for employees who are out of the office for sales. And this easily syncs with QuickBooks. (http://gopayment.com/)

Mileage Tracker-Whether you’re a contractor or business owner, there are huge tax savings in your mileage. But keeping a log can be a challenge. This handy app comes with a GPS and allows you to track based on itinerary or time. You can add multiple cars and track by client or job. At the end of the year or quarter, simply export to an excel spreadsheet. It’s also handy for expense reports. (https://play.google.com/store/apps/details?id=com.softmimo.android.mileagetracker&hl=en)

LogMeIn-Stay on top of your business with this app that lets you access your computer from your smart phone or Ipad. Allows you to access all the applications on your computer and save to both the computer and your device. Puts an end to that sinking realization that you left that file at the office. (https://secure.logmein.com/products/ios/)

Credit Card Statements Aren't Enough

So often when we begin working with a new client, they’re surprised to hear that the IRS does not accept credit card statements as proof of expenses. And to be honest, even some very educated and experienced financial professionals also assume statements are considered proof of expense. But statements alone do not provide the details needed in case of an audit. Receipts or invoices will prove the full business name, business address and details on what was purchased. The IRS must confirm that the purchase was necessary for your business. And honestly, you could have bought anything from Costco. The IRS will not take your word for it.

This can be a labor intensive task to keep up with especially when several employees have a credit card. The best method I’ve used is to have a designated folder for each employee’s credit card. Then decide whether you should sit down with the statement monthly or weekly. If you have a lot of charges, weekly might be best. Confirm that you have a receipt for each transaction and hunt down any missing receipts as soon as possible. In the case of restaurant receipts, it’s also a good idea to keep a record of who was present and the purpose of the meal (Ex. John Smith (CEO) and Jane Jones (CFO) lunch meeting to discuss Q3 financial goals). Once cardholders realize that you’re very serious about this, they become more cooperative. Once all receipts are gathered, securely attached them to the statements and file. The hard work is all well worth it in comparison to losing all your deductions. And as always, look to your bookkeeper for guidance on processes and best practices!

Petty Cash

Petty cash is often viewed as random cash with no real procedures. But shrewd business owners need to have as much control over petty cash as they do over the rest of their financials. A few simple rules will help you keep control of your petty cash. First, set an amount to be kept. For every withdrawal, fill out a voucher with the amount taken and attach a receipt of the expense. The amount of vouchers and cash should always equal the original set amount. It’s also a good idea to have one person in control of the cash, usually the bookkeeper, and keep it in a secure place. Make sure employees know what qualifies as a petty cash expense and require receipts for all withdrawals. Petty cash should never be used as personal loans to employees. Use a separate register in your books to account for petty cash and use JE’s to update them regularly. With a few simple steps, you can put into place a great system to protect every penny of your business’s funds.   

The Economy vs. Small Business

It may seem like an unfair battle. Looming increases in interest rates and lack of credit are an especially fierce opponent for small business owners. But there are some tactics that will put you at an advantage. One of the best ways to protect your business is to take a close look at your cash flow which will be key in navigating the tumultuous economic climate.  Now is the time to go through your bills and take an honest look at what you may be able to cut or lower. Even if some things are necessary for your business to function, it’s worth your time to get new quotes from competitors or call your current provider to see what they can do for you. Be aware of vendors that might have lured you in with low introductory rates and plans and gradually increase the fees. Business credit cards are exempt from the credit card laws that keep your interest rate from rising without notice so be aware of your interest rate at all times. Also take advantage of useful sites like www.billshrink.com  where you can plug in your information find the best options on services such as credit cards, cable providers and wireless plans.  It may take a few minutes, but you can find major savings which just may be what your business needs to prevail against the economy.  

Contractor vs. Employee?

Most small businesses are better off with contractors instead of employees since the overhead cost is lower. But beware of misclassifying. The IRS has rules that stipulate when a contractor has crossed the line into employee territory. This can be a costly mistake and also land you into quite a bit of trouble with Department of Labor. There are certain general guidelines, such as how much the company controls scheduling and compensation, which weigh in on the decision. But even the IRS will admit every situation varies. If in doubt, you can file a form SS8 with the IRS to have an official ruling. But be advised that this can take up to six months. If nothing else, a good rule of thumb is to document your relationship through signed written agreements and make sure all compensation is documented. And of course, rely on a well-trained bookkeeper for guidance!