How to use QuickBooks bank rules in QuickBooks Online.

1/31/2017

How to use QuickBooks bank rules in QuickBooks Online.

You asked and we listened: introducing bank rules in QuickBooks Online!
Today, QuickBooks categorizes transactions based on businesses like yours or on similar transactions you’ve already categorized.
Rules go beyond that automatic categorizing to give you a finer level of control, letting you further customize and automate the bank transactions you accept into QuickBooks. This helps save you time and minimizes errors!
How to create a rule

From the left navbar, select Transactions > Banking.
In the upper right corner, click the ▼ to the right of Update and select Manage rules.
Click New rule.
Name the rule and select the accounts it should apply to, select the transaction criteria, and then set the actions that should be taken. You can assign specific payees, categories, classes1, and locations2.
You can even split items between categories and classes1.
Click Save.

Examples of rules

Categorize expenses at A Rental more than $1000 as Equipment Rental (shown above)
Categorize expenses from Office Manor more than $500 as Capital Expenditure
If the description is Gardening at Bob’s, assign Bob Waldron as the payee
Split income from Lakeside Law Firm as 30% Services and 70% Products
Split expenses from Hillside Cellular as $45 Telephone and the remainder as Internet
If the description is Amazon or AMZN, set the payee to Amazon and category to Office Expenses
If the description is Burger King or McDonalds or Taco Bell, set the payee to Fast Food Vendor and category to Meals and Entertainment
If the description is Shell or Chevron, set the payee to Gas Vendors and category to Automobile:Fuel
If the description is USPS or FedEx, set category to Shipping

Mike McVay, Certified QuickBooks ProAdvisor 850-725-5696
www.PensacolaFLTax.com

Notes

To turn on classes (QuickBooks Plus only): Gear > Company Settings > Company > Track classes. (If you don’t see that, try Gear > Company Settings > Categories > Class tracking.)
To turn on locations (QuickBooks Plus only): Gear > Company Settings > Company > Track locations. (If you don’t see that, try Gear > Company Settings > Categories > Location tracking.)
Want to try bank rules using sample data? Check out the QuickBooks test drive.

Managing your business finances does not have to be eat-your-spinach drudgery when you have QuickBooks Online. Certified QuickBooks ProAdvisor in Pensacola, Florida.

1/29/2017

The key, of course, is to create a realistic plan with a budget, record your transactions correctly, review your results regularly and always keep good records. Your comfort level with the three basic financial reports that evaluate your fiscal health is also essential: the balance sheet, income statement and cash flow statement. When is it time to do what?

The following checklist lays out a recommended timeline to take care of the accounting functions that will keep you attuned to the state of your business and streamline your tax preparation. Read through for in-depth coverage of your required tasks. McVay Business Services will customize these task for your business to reach ultimate productivity.

Daily Accounting Tasks

1. Check Cash Position Since cash is the fuel for your business, you never want to be running near empty. Start your day by checking how much cash you have on hand. Knowing how much you expect to receive and how much you expect to pay during the upcoming week/month is important, too—but it is not gas in your tank.

Weekly Accounting Tasks

2. Record Transactions Record each transaction (billing customers, receiving cash from customers, paying vendors, etc.) in the proper account daily or weekly, depending on volume. Although recording transactions manually or in Excel sheets is acceptable, it is probably easier to use accounting software like QuickBooks. The benefits and control far outweigh the cost.

3. Document and File Receipts Keep copies of all invoices sent, all cash receipts (cash, check and credit card deposits) and all cash payments (cash, check, credit card statements, etc.). Start a vendors file, sorted alphabetically, (Staples under “S”, Costco under “C,”etc.) for easy access. Create a payroll file sorted by payroll date and a bank statement file sorted by month. A common habit is to toss all paper receipts into a box and try to decipher them at tax time, but unless you have a small volume of transactions, it’s better to have separate files for assorted receipts kept organized as they come in. Many accounting software systems let you scan paper receipts and avoid physical files altogether.

4. Review Unpaid Bills From Vendors Every business should have an “unpaid vendors” folder. Keep a record of each of your vendors that includes billing dates, amounts due and payment due date. If vendors offer discounts for early payment, you may want to take advantage of that if you have the cash available.

5. Pay Vendors, Sign Checks Track your accounts payable and have funds earmarked to pay your suppliers on time to avoid any late fees and maintain favorable relationships with them. If you are able to extend payment dates to net 60 or net 90, all the better. Whether you make payments online or drop a check in the mail, keep copies of invoices sent and received.

6. Prepare and Send Invoices Be sure to include payment terms. Most invoices are due within 30 days, noted as “Net 30” at the bottom of your invoice. Without a due date, you will have more trouble forecasting revenue for the month. To make sure you get paid on time, always use an invoice template the contains the right details such as payment terms, itemized charges, and your payment address. For a complete guide to creating invoices, managing vendors and ensuring you get paid on time, check out our Ins and Outs of Invoices.

7. Review Projected Cash Flow Managing your cash flow is critical, especially in the first year of your business. Forecasting how much cash you will need in the coming weeks/months will help you reserve enough money to pay bills, including your employees and suppliers. Plus, you can make more informed business decisions about how to spend it. All you need is a simple statement showing your current cash position, expected cash receipts during the next week/month and expected cash payments during the next week/month. To download a free customizable cash flow statement template, click here.

Monthly Accounting Tasks

8. Balance Your Business Checkbook Just as you reconcile your personal checking account, you need to know that your cash business transaction entries are accurate each month and that you are working with the correct cash position. Reconciling your cash makes it easier to discover and correct any errors or omissions—either by you or by the bank—in time to correct them. Checkbook reconciliations in Pensacola, FL is a breeze with help from QuickBooks Online and McVay Business Services.

9. Review Past-Due (“Aged”) Receivables Be sure to include an “aging” column to separate “open invoices” with the number of days a bill is past due. This gives you a quick view of outstanding customer payments. The beginning of the month is a good time to send out overdue reminder statements to customers, clients and anyone else who owes you money. At the end of your fiscal year, you will be looking at this account again to determine what receivables you will need to send to collections or write off for a deduction.

10. Analyze Inventory Status If you have inventory, set aside time to reorder products that sell quickly and identify others that are moving slowly and may have to be marked down or, ultimately, written off. By checking regularly (and comparing to prior months’ numbers), it’s easier to make adjustments so you are neither short nor overloaded.

11. Process or Review Payroll and Approve Tax Payments While you have an established schedule to pay your employees (usually semi-monthly), you need to meet payroll tax requirements based on federal, state and local laws at different times, so be sure to withhold, report and deposit the applicable income tax, social security, Medicare and disability taxes to the appropriate agencies on the required dates. Review the payroll summary before payments are disbursed to avoid having to make corrections during the next payroll period. A payroll service provider can do all this to save you time and ensure accuracy at a reasonable cost. You can also use our free paycheck calculator to figure out what you need to withhold from each paycheck.

12. Review Actual Profit and Loss vs. Budget and vs. Prior Years Your profit and loss statement (also known as an income statement), both for the current month and year to date, tells you how much you earned and how much you spent. Measure it against your budget every month (or quarter). Comparing your actual numbers to your planned numbers highlights where you may be spending too much or not enough, so that you can make changes. If you have not prepared a budget, compare your current year-to-date P&L with the same prior-period year-to-date P&L to identify variances and make adjustments. Check out our guides to download a free customizable budget template and profit and loss statement.

13. Review Month-End Balance Sheet vs. Prior Period By comparing your balance sheet at one date—June 30, 2015, for example—to a balance sheet from an earlier date (December 31, 2014), you get a picture of how you are managing assets and liabilities. The key is to look for what is significantly up and/or down and understand why. For example, if your accounts receivable are up, is it due to increased recent sales or because of slower payments from customers? Click here for a free customizable balance sheet template.

Quarterly Accounting Tasks

14. Prepare/Review Revised Annual P&L Estimate It’s time to evaluate how much money you are actually making, whether your net assets are going up or down, the difference between revenues and expenses, what caused those changes, how you are spending profits, as well as identifying trouble spots, and making adjustments to improve sales and margins.

15. Review Quarterly Payroll Reports and Make Payments You have been reviewing your semi-monthly payroll reports. However, the IRS and most states require quarterly payroll reports and any remaining quarterly payments. Again, it’s best if your payroll service provider completes these reports and files them. Your job is to review to make sure they appear reasonable. Pensacola PEO and Payroll companies such as McVay Business Services can set-up all your payroll needs.

16. Review Sales Tax and Make Quarterly Payments If your company operates in a state that requires sales tax, make sure you comply to avoid serious penalties. The U.S. Small Business Administration (SBA) in Pensacola can help you determine your state tax obligations.

17. Compute Estimated Income Tax and Make Payment The IRS and states that have income taxes require you to pay estimated income taxes. Review your year-to-date P&L to see if you owe any estimated taxes for that quarter. Mike McVay, Tax Accountant in Pensacola can assist if necessary.

Annual Accounting Tasks

18. Review Past-Due Receivables Now it’s time to check significant past due receivables and decide whether you think customers will eventually pay, whether to send past due bills to a collection agency or whether to write them off for a deduction.

19. Review Your Inventory Review your current inventory to determine the value of items not sold. Any write-down of inventory translates to a deduction on your year-end taxes. If you do not write down unsellable inventory, you are overstating your inventory balance and paying additional taxes that you don’t owe.

20. Fill Out IRS Forms W-2 and 1099-MISC The IRS has a February 1 deadline that requires you to report the annual earnings of your full-time employees (W-2s) and independent contractors (1099s). This deadline includes mailing copies of the tax forms to the people who worked for you. You must also file with the IRS no later than February 28. Note: A 1099 form is not required for any contractors who earned less than $600. Consider saving time and avoiding errors with an e-filing service. For help determining whether your worker is an independent contractor or an employee, call McVay Business Services in Pensacola, FL. Pensacola tax and payroll services. Also see our W-2 vs. 1099 Wizard. If you employ independent contractors, check out our guide to filing 1099s.

21. Review and Approve Full-Year Financial Reports and Tax Returns At tax time, carefully review your company’s full-year financial reports before giving them to your accountant. Before you sign your return, be sure to review it for accuracy based on your full-year financial reports. If the IRS audits your company and finds any underpayment of taxes, it will come to you, not your accountant, for any additional taxes, penalty and interest. Accounting software like QuickBooks can help you generate financial reports and manage taxes, but for more guidance, see our guide to financial reporting. McVay Business Services in Pensacola, FL handles all your business P&L reporting, Income Tax, Payroll, I.R.S. reporting requirements. CPA in pensacola is available. Business start-up services for LLC, S-Corp, Sole Proprietor and Non-Profit and Not-for-Profit entities.

McVay Tax Services in Pensacola
1720 W Fairfield Dr Ste 506 Pensacola, FL 32501
850-725-5696
www.PensacolaFLTax.com
bestvirtualbookkeepers@gmail.com

TAX REFUND ADVANCES FOR 2017 - Don't let the I.R.S. Delays Affect You !

1/26/2017

TAX REFUND ADVANCE from McVay Tax Services Pensacola

Where's your refund? You can get your tax refund instantly by signing up for a tax refund advance.

IRS Refund CycleThe IRS website states that “The IRS issued more than 9 out of 10 refunds to taxpayers in less than 21 days last year. The same results are expected in 2017.” This means that you will probably receive your federal tax refund within three weeks of e-filing your tax return.

With McVay's Income Tax Advance you can pick up a check for a portion of your tax return the same day. Call is at 850-725-5696 or email for an appointment at Mike@MikeMcVay.com

If you file a paper tax return by postal mail, however, the IRS will likely issue your tax refund within six to eight weeks after receiving your return. If you file your tax return electronically online (also known as “e-file”), it will be processed faster in the IRS system, which means you can expect to receive your tax refund faster as well — usually within three weeks.

Expect delays if you filed your tax return late or if the IRS finds mistakes on your tax forms. But keep in mind that the IRS has millions of tax returns to process, therefore some delays may just be a result of high volume.

With A Tax Refund Advance You can receive an immediate tax refund by getting a tax refund advance. This is also sometimes referred to as an "instant refund". A tax refund advance is essentially a loan that you get from the tax preparation service you use to file your income tax return. Many taxpayers like to request a tax refund advance because it's fast — you can receive the money as soon as your tax return is accepted by the IRS. Afterwards, you don't really have to do any work in repaying the loan because the IRS will send your actual tax refund check to the tax preparation service that gave you the tax refund advance.

Mike McVay, Tax Accountant - 1720 W Fairfield Dr Ste 506 Pensacola, FL 32507
Mike@MikeMcVay.com - 850-725-5696

UNDERSTANDING YOUR DEDUCTIBLES IN THE HEALTH INSURANCE MARKETPLACE - Make the most of your tax refund.

1/18/2017

There are many factors to consider when choosing the Health Insurance Marketplace plan for you and your family such as your annual deductible, the premium, and services that are offered. Of these considerations, your annual deductible is one of the most critical factors to understand.

What is a Deductible?
A deductible is the amount you owe for your health coverage services before your health insurance plan starts to pay. Below are the 5 things you should know about your annual deductible.

Preventative services like cancer screening, immunizations, and well-child visits will always be covered without any costs to you.
Without a deductible, services such as specialist visits, mental health outpatient services, and brand name drugs are often covered, however you’ll still be responsible for copayment or coinsurance.
When you purchase a health coverage plan in the Marketplace, be sure that you’re familiar with what it covers. You can see a detailed explanation under a plan’s "Summary of Benefits and Coverage".
Consider your plan’s total out-of-pocket costs, including deductibles and copayments, to help make the correct decision on your health insurance services for you and your family. Review the Marketplace plans for 2016 and be sure you understand all of the details before choosing.
Check to see if you qualify for cost sharing reductions. Most individuals that purchase through the Marketplace usually save more if they choose the Silver plan. If you qualify, your yearly out-of-pocket costs and your deductible could be lowered. Check to see if you qualify for these savings.

If you haven’t already heard, the income tax deadlines look a little different in 2017

1/16/2017

Those who have filed business tax returns before will notice what’s been causing a bit of a buzz in the CPA universe. Starting in 2017, partnerships, who used to submit tax returns by mid- April (at the same time as individuals filed their returns), will now file in mid-March with other businesses. Conversely, C corporations who used to submit tax returns by mid- March will now file in mid- April.
January 31, 2017

All businesses must file payroll forms: Mail in payroll forms for all employees (W-2s, W-3s, 940, 941) and any contractors who you paid $600.00 or more (1099-MISC).

February 28 or 29, 2017

All businesses must submit an annual returns summary to the IRS using Form 1096.
Companies incorporated in California with locations/employees in San Francisco county file San Francisco Payroll Tax Report

March 1, 2017

Companies incorporated in Delaware file annual Delaware report and pay the franchise tax.

March 15, 2017

Partnerships and S Corporation pay and file their federal and state tax returns using Form 1065 and 1120S, respectively, or pay and file for the extension.
Last day to pay employee bonuses for 2016 performance (for business who use the accrual method of accounting).

April 17, 2017

C Corporation and Sole Proprietorships pay and file their federal and state tax returns using Form 1120 or Schedule C of Form 1040, respectively, or pay and file for the extension.

Last day to make a 2016 contribution to a traditional or Roth IRA.

May 17, 2017

Tax-exempt organizations file an informational tax return using Form 990, or file for the extension.
Companies incorporated in Texas file annual report and pay the franchise tax.

June 15, 2017

Companies, partnerships, and individuals that have a foreign financial account with more than $10,000 must file an FBAR (Foreign Bank Account Report) report.

September 15, 2017

The final deadline for extended Partnership, C Corporation and S corporation to file tax returns.

October 16, 2017

The final deadline for extended individual returns.

These dates are based on the use of the calendar year (starting January 1 and ending December 31) as a business’s fiscal year. If your business does not use the calendar year, consult this article to learn which ways an alternative fiscal year can affect your business taxes, and how you can adjust your tax return calendar.
Why did they switch the partnership and C Corporation due dates? And why does this help?This change to the partnership tax return deadline ultimate helps the partners of that company the most. Because partnerships must take care of their filing responsibilities in March, there’s a whole extra month left for them to distribute information their partners may need for their individual returns in April. In a partnership, every partner must receive a Schedule K-1 disclosing their earnings for the year—similar to a W-2 for an employee. In turn, the partner must claim those earnings as income or lack thereof as losses on their tax return.
There’s still time to save time and money on business taxes, with the right strategy It’s probably not shocking that most of the questions we get from small business owners revolve around saving money on taxes. And fortunately for them there are many ways small businesses can lower their income tax liability.

Mike McVay, Tax Accountant 850-725-5696 - www.PensacolaFLTax.com

2017 Standard Mileage Rates Released

1/11/2017

Attention drivers, the 2017 standard mileage rates have been released. The IRS announced the rates today, which are used for determining the deduction for the costs of operating a vehicle for various business, charitable, moving, or medical reasons.
What are the changes for 2017?
Starting January 1st 2017, the standard mileage rates (for use of a car, van, pickup or panel truck) are:

53.5 cents for business miles driven (down from 54 cents per mile in 2016)
17 cents per mile driven for medical or moving purposes (down from 19 cents per mile in 2016)
14 cents per mile driven in service of charitable organizations (no change from 2016)

How are the rates calculated?
There are various factors that influence the standard mileage rates, including:

Gas and oil prices (declining as of late)
Insurance costs (rising as of late)
The state of the economy
The expected cost of typical wear and tear on a vehicle

Hence the rates are purposed to go over and above the amounts a consumer pays solely for gas.
How can I reduce my fuel consumption?
Looking for ways to save money and reduce fuel consumption? There are a few things you can do to make the most out of a tank of gas:

Make a concerted effort to maintain a constant speed, as speeding up and slowing down frequently can severely lower your gas mileage. Cruise control can help!
Stop speeding. For every 5 miles you drive over 60 miles per hour, you are reducing your fuel economy by potentially 7%.
Though tempting, letting your car warm up for 10 minutes during the heart of winter can cost you $0.04 per minute ($2.80 per week of wasted gas).
Consider a tune up—it can increase your mileage by 4%.
Consider cleaning your car and removing extra cargo from both the vehicle and the roof rack. Extra weight can reduce your fuel economy as well.

Is the standard mileage rate the only way to gauge deductions?
No, taxpayers always have the option to claim deductions based on the actual costs of using a vehicle, as an alternative to using the standard mileage rates.

Call Mike McVay you have any questions about the 2017 standard mileage rate in Pensacola,FL at 850-725-5696

1720 W Fairfield Dr, Ste 506 Pensacola, FL 32501

How to use QuickBooks bank rules in QuickBooks Online.