We are advising our clients to upgrade to QuickBooks 2012. Here are three of the most important reasons why.

1.  Calendar View. The Calendar View enables businesses to see what they need to do today, and into the future, including tasks, invoices and bill payment deadlines, and transactions posted.

QuickBooks 2012 Calendar View

This calendar does NOT sync with Outlook or any other calendaring software. This was intentional. According to Intuit, many users in the beta program indicated they wanted a confined place for their financial information and to-dos. This is a limitation in our view since many of our clients would like to see that information at any time, anywhere. That said having a more usable task function within QuickBooks, one allowing you to attach a transaction to the task, is incredibly beneficial.

2. Document Center: With Document Center, businesses can attach receipts, invoices, estimates and virtually any other document to a transaction. These documents are locally stored. We love this! In previous editions a user could store documents in the subscription based QuickBooks cloud storage service. Most hated this option. We did.

QuickBooks 2012 Document Center

Now you can get more of your work done in a paperless environment – no more searching files for a paid invoice on a piece of equipment, for instance. And attaching files is easy, just drag and drop. Very nice.

Warning: there are some real limitations. Attachments are stored in a separate folder. Meaning when you create a backup of your QuickBooks file, the attachments do not come along. So you will also need to backup the attachments folder. In addition, the attachments folder is “in the clear”. In other words, not secure. So attaching documents with personal or sensitive information, like credit card, social security or driver’s license numbers, is not advised.

3. Lead Center: The Lead Center allows businesses to track sales leads and prospect information, thus functioning as mini-CRM (customer relationship management) tool. You can attach tasks to any entry within the Lead Center. So if you want to make sure you follow up with this lead, you can assign a task to it to remind you to do so. Fabulous! No more lost leads! And when that lead becomes a customer, with a couple of clicks of the mouse that entry transfers from the Lead Center to the Customer Center. Sweet!

QuickBooks 2012 Lead Center

Bottomline: Despite some limitations, QuickBooks 2012 is well worth the upgrade. Another reason to upgrade: if your QuickBooks software is more than three years old, Intuit will no longer support it.

For a complete list of what’s new in QuickBooks 2012 go here.

QuickBooks Online comes in three flavors: Online Simple Start, Online Essentials, and Online Plus, each with their own features, limitations and subscription price point. For more specific information: QuickBooks Online Options

So what’s the biggest advantage to shifting accounting functions online? Some of the biggest pluses include the ability to work on your books from any internet-connected computer regardless of platform (PC or Mac with any newer browser), no software upgrades to buy, and data availability on mobile devices.

You have to know that not all options available in the desktop version of QuickBooks are available in the online version. But hey, there’s always a trade-off when it comes to convenience. Some of the trade-off biggies include limited inventory functionality, the ability to record only basic customer and vendor data, minimal integration, and no point of sale.

So, all that said, who would find QuickBooks Online useful? Primarily service-based small businesses with few or no employees are the best candidates. Being able to access your data from home, the office and road via mobile device doesn’t hurt either.

Want more info? Click here to read an in-depth review of QuickBooks Online Plus 2012 from ChooseWhat

1. KEEP YOUR MONEY. Without proper record keeping a company may not track all its expenses fully and accurately, leaving tax deductions on the table. In addition, the IRS may disallow claimed deductions without proper supporting documentation.
2. INFORMATION IS POWER. Can the company afford a new piece of equipment? Is it spending too much on overtime? Which customers are slow paying and need new terms negotiated? How does cash flow compare to net income? Keeping a solid set of books is essential to providing an accurate picture of a company’s financial standing and allows a business owner to make more informed business decisions.
3. FRAUD PREVENTION. Carefully monitoring bank and credit cards accounts. Comparing receipts and checks against statements. Manually reconciling on a monthly basis. These are all steps to prevent fraud, from both internal and external sources.
4. SAVE YOUR MONEY. Keeping a clean set of books, as well as complete and accurate financial records, will go a long way in containing costs related to tax preparation. CPA fees are high. The more groundwork the business owner or company does up front, the less time a CPA needs to prepare a tax return. In addition, accounting and billing errors are more apt to be caught which can translate to a lot of savings over the long run.
5. FINANCING. When it is time to purchase a new piece of equipment, apply for a working capital line of credit, even to lease some machinery, banks and companies look to financial statements to determine whether a company qualifies. While only a CPA can prepare Financial Statements required in some instances, often only internal financial statements are necessary for certain loan or lease applications. Preparing these is a breeze if a company is properly maintaining its books and financials documentation.

Bottomline: Take the time up front or pay later.

1.    RECONCILE MONTHLY. Review bank and credit card statements upon receipt. If an error exists, you can address it immediately. If you wait, often nothing can be done. Reconcile accounts monthly. This is the first line of defense against fraud.

2.    SETUP ONLINE BANKING. Online banking is invaluable. Check balances, transfer funds and pay bills all from your computer, day or night. Tracking your books on QuickBooks? Downloading transactions makes reconciling a snap.

3.    GO MOBILE. Many banks and credit cards have mobile apps enabling online banking from your phone. Some banks even take mobile check deposits. Talk about convenient!

4.    DEDICATE A CREDIT CARD. Use one credit card for business expenses only, simplifying bookkeeping and saving time and money, especially in tax preparation. Also, unlike debit cards, personal exposure is limited in cases of fraud. Pay it off monthly!

5.    INVOICE REGULARLY. Schedule it. Getting paid is important all the time, not just when you need cash.

Have any tips that have made your business financial management easier? Let us know about them!

With the start of school a couple of weeks away (for some of you even sooner than that), here are some tips to help give your wallet a break while back to school shopping.

1. Shop at Home First. We all have supplies for arts and craft projects at home, purchased throughout the year. Before you go out shopping, check for extra school supplies around your house. Bets are you have extra packages of markers, crayons, pencils, pens, unused notebooks or boxes Kleenex. Reuse last year’s book bag if it’s not too beat up. We have an every other year rule at our house

2. Research Local Newspapers and Online Sources for Discounts. Different stores will have discounts on different items. But remember: traveling to multiple stores, running all over town chasing a deal, can wipe out savings pretty quickly with gas prices as high as they are, not to mention if you include the “cost” of your time. Map out your travel and shopping schedule to eliminate this problem. If you plan to shop online for back to school clothes, many stores have free shipping, alongside discounts, if you order early and can wait for delivery. All with a few clicks of a mouse from your home or office!

3. Social Media. Become a fan or “like” your favorite stores, such as Target or Gap, on Facebook or follow them on Twitter. Many stores will notify their most loyal customers of special promotions they are running or have deals specifically targeted to their followers.

4. Discount Warehouses. Costco and Sam’s often run deals on school supplies and clothes this time of year. These stores are terrific when shopping for multiple children. Buy supplies in bulk and keep leftover supplies in a Rubbermade™ airtight tub for other projects during the year. Shop this “store” the following school year.

5. Tax Free Weekend. In Texas, tax-free weekend starts Friday, August 19^th and lasts through Sunday, August 21^st. There is a $100 threshold, so bigger ticket items are excluded. The average sales tax is 8%. That’s quite a savings if you can handle the crowds.

6. Shop the List (and only the list). Stay on point. It is very easy to stray especially with kids in tow. If you can, leave them at home. If they want something not on the list, suggest that they use their allowance or perform extra chores around the house to get it. If they balk, then they didn’t really want it, did they?!

• Income tax rates will remain that the same levels as 2009.  Itemized deductions will remain for high-income taxpayers.
• The amount of income that is exempt from AMT increases to $47,450 for individuals and $72,450 for couples.  The bill will allow taxpayers to apply non-refundable credits to their tax liability, whether under the AMT or the regular tax code.
• There will be a decrease in social security taxes withheld for payroll in 2011 from 6.2% to 4.2% of wages up to $106,800.  This replaces the Making Work Pay Credit.  So, workers will receive an increase in take home pay in 2011 instead of a credit on your 2010 return.
• The $1,000 child tax credit will remain.  It will also remain a refundable tax credit.
• Estate tax in 2011 and 2012 will be reinstated at an exemption level of $1 million at a top rate or 55%.  The exemptions level has been raised to $5 million and the top rate lowered to 35%.  “Step up in basis” will be reinstated for those who die in 2010, 2011 or 2012.  These means those that died in 2010 will be allowed to choose which estate tax rules to follow-2010 or 2011.  There is no estate tax for 2010, but there is also no step-up rules.  There is only the option to exempt $1.3 million worth of capital gains from tax.
• Qualified capital gains and dividends will continue to be taxed at 15%.  Filers in the 10% or 15% will continue to enjoy 0% on capital gains or dividends.
• Standard deduction for couples will remain at twice that for single filers as well the 15% bracket will be twice the income as single filers.
• The American Opportunity tax credit will remain for 2011 and 2012.  It is worth $2,500 and it may be claimed for four years’ worth of college for those with modified AGI below $90,000 single filer and $180,000 for filing jointly.
• Local sales tax deduction for those who itemize will remain.
• Teachers’ deduction for up to $250 in classroom expenses will remain.

For more information about these or other items covered in the Tax Hike Prevention Act of 2010 go to www.irs.gov.

THE GOOD

1)    The ability to “use” Facebook as your Page identity, creating even more separation between personal and professional purpose. Switching between personal and professional use is easy, just a click of a link. On the right-hand side of your Page Wall is the phrase “Use Facebook as Your Page Name”. With a click of this link, an admin can now “become” the Page and use Facebook as that Page. Sweet!

2)    Pages can “like” other pages and now have distinct News Feeds. This is especially useful. Prior to the update, an admin may have become a fan of a number of Facebook pages solely for professional reasons. Now an admin doesn’t have to clutter up her own News Feed with work-related posts (unless she wants to).

3)    Pages can “share” links, pictures, etc. Makes sharing content on your Page much easier. Works well in conjunction with the new Page News Feed and the ability for a Page to like a Page.

4)    Notifications of likes, posts and new “fans”. This is probably one of the most significant upgrades to the new Facebook format. While there were already alternative methods allowing admins to see these, it is now automatic. Just like profile notifications, a red flag of the notification will present itself on Facebook when using an admin is using it as a Page. Notifications are also sent via e-mail to admins. Great if immediate response is necessary. No more days of scrolling down to see if someone posted a new comment. YAY!

5)    The ability to communicate (like and post) with other Pages. For instance, PermaSource can now comment on a client or vendor Page if it wants. There are some drawbacks to this in theory (See “The Bad” list below), but when used properly and ethically, this feature can really benefit a company by reinforcing already established relationships.

6)    The ability to change your Page name. Previously this was not possible. Now the name of your Page can be updated through the Edit Info function at the top of your Page.

THE BAD

1)       Posts are not chronological. Well, sometimes they are, but mostly they aren’t since that is the current default. The same annoying thing happens on Facebook Profiles and the workaround is now the same – thanks to some very vocal folks. Click on Most Recent at the top of Page’s Home. The News Feed then reorders chronologically.

2)       The ability to communicate (like and post) with other pages. Like with many things, there is a dark side to an otherwise fantastic feature. In this case, the ability to communicate with other Pages may lead to increased spam. Posting as a Page is anonymous, allowing anyone to hide behind a generic logo or avatar. The rule here is: only communicate with those you know and have an existing relationship. Otherwise, you may be lumped in with the spammers. We haven’t seen any abuse of this yet, but this definitely has the potential to become ugly.

THE UGLY

So far we haven’t seen anything truly ugly, other than perhaps just the time it takes to become familiar with the new format. Some of you may disagree. What do you like about the new format? What don’t you like? We welcome your comments about your experience.