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Multicurrency Transactions in QuickBooks

October 22, 2012 • Jeff Cecchini • Comments Off on Multicurrency Transactions in QuickBooks

You have a few options regarding multi-currency transactions in QuickBooks.

First, Q/B does have a multicurrency feature that you may want to check out. Thoroughly research before implementing as you can’t reverse it (http://community.intuit.com/quickbooks/library/resource_centers/multicurrency). This is best implemented if you have frequent multi-currency transactions.

However, if you create the occasional invoice that gets paid in to you in foreign funds (for example Canadian dollars) into a US dollars bank account, then you can simply do this:

When you create an invoice in USD (US dollars), use one of the invoice lines to specify the conversion rate to CAD (Canadian dollars) and the converted amount of CAD that is due at the time of the sale. Specifiy as long as the customer pays the specified CAD amount within the invoice terms, they will have satisfied payment for the invoice regardless of the exchange rate. This makes things less complicated.

When you get the check for the specified CAD amount, receive payment on the invoice for the full amount of the invoice in USD, and allocate to Undeposited Funds account.

Then go to, Banking>Make Deposits and select the USD payment, then add a line to the Make Deposits screen to balance the amount that the bank actually deposited into your bank account based on their exchange rate at the time of deposit.

If it is a negative amount: allocate to a Expense account called Currency Conversion Expense. If it is a positive amount: allocate to an Income account called Currency Conversion Income.

In QuickBooks Tips & How-to's

FBI warns users of malicious mobile malware #Android

October 15, 2012 • Jeff Cecchini • Comments Off on FBI warns users of malicious mobile malware #Android

In a warning issued by a government task force, mobile users are told to beware of malware that is especially lured to Android’s operating system and ways to avoid it.

http://news.cnet.com/8301-1009_3-57532937-83/fbi-warns-users-of-malicious-mobile-malware/

In Mobile

How to change which programs Windows uses by default

October 10, 2012 • Jeff Cecchini • Comments Off on How to change which programs Windows uses by default

How to change which programs Windows uses by default

http://windows.microsoft.com/is-IS/windows-vista/Change-which-programs-Windows-uses-by-default

In Windows

The basics of S corporation stock basis

October 5, 2012 • Jeff Cecchini • Comments Off on The basics of S corporation stock basis

This is a great article about the basics of S-Corporation shareholder stock basis.

http://www.journalofaccountancy.com/issues/2012/jan/20114319.htm

In Business Management, IRS Tax Info, Personal Finance

Preparing for a new mortgage or re-finance

October 2, 2012 • Jeff Cecchini • Comments Off on Preparing for a new mortgage or re-finance

If you prepare ahead of time for a obtaining a mortgage loan, it can make a big difference to make your deal go smoother and get a better rate.

  1. Do you have the required Income?
    Two ratios are commonly used in the mortgage industry to determine if a borrower can afford the loan payments. Run these calculation ahead of time to know where you need to be before visiting with a loan officer.

    a.) Front-end ratio (aka Maximum housing expense ratio)= annual earnings x 0.28 / 12 months
    As a general rule, your monthly mortgage payment including principal, interest, real estate taxes, and homeowners’ insurance should not exceed 28% of your gross income. The formula above calculates what this maximum mortgage payment can be.

    b.) Back-end ratio (aka Maximum allowable debt-to-income ratio) = annual earnings x 0.36 /12 months.
    As a general rule, your total monthly debt obligation (mortgage, minimum payment on credit cards, car payments, child support, alimony, student loans, etc.) should not exceed 36% of your monthly gross income. The formula above calculated what this maximum monthly debt payment amount should be.

  2. Do you have the required funds in your bank account?
    Lenders require borrowers to typically submit the most recent 3 months of bank statement to verify that the borrower has the funds needed at various stages of the process, such as funds needed to pay off certain debts to get the maximum allowable debt to income ratio where it needs to be, or pay off liens, and pay off any other funds due at close of escrow such as a down payment.

    Bank statements are also used to determine if the borrower has demonstrated the ability to manage finances, accrue savings, and probably make the future mortgage payments.

    If you plan to use cash on hand or proceeds from the sale of personal items, get those funds in your bank account at least 4 months in advance so those transactions do not appear on the bank statements that you will submit to the lender. This demonstrates that they are your existing funds.

    Deposits (other than those that match the regular earnings reported) showing on bank statements that are provided to the lender will generate questions and require explanations by you, some of which they may not allow, even though the funds are legitimate. If this happens you can be stuck if the lender states that you do not have enough verifiable funds even though your bank balances reflect the required balance. Their concern is that you are not borrowing funds from other sources, so verifiable funds are what they want.

    Lenders don’t like cash, as they cannot determine its source. Unnecessary problems and explanations can be avoided if you plan ahead with regards to these types of funds and get them into your account prior to the statements that you will submit. Gifts require the giver to submit a bank statement proving the funds were the giver’s at the time the gift was made as well as a signed form testifying the funds are in fact a gift, not a loan requiring repayment.So be prepared for that level of documentation if gifts are involved.

  3. Credit Score.
    Generally a higher score gets better terms. Pay attention to these things that you can do to change your score:
    a.) Pay your bills on time.
    b.)If you carry a balance greater than 50% of an account’s credit line, can you pay down the balance or transfer part of the balance to another card?
    c.) If you carry balances that combined use over 50% of the total of all of your credit lines’ limits, can you pay down the balances, or open an additional line of credit to increase your total available credit to get the utilization percentage below 50%.
  4. Gather up the required documentation.
    While the requirements vary a bit among lenders and whether you are self-employed or not, generally, at least you’ll need the following documentation. Gather it up before contacting the loan officer so you are ready to go with the bulk of the documentation.
    a.) Last 2 year’s tax return
    b.) Last 2 years of Form W-2 & Form 1099’s, and Sch K-1’s, if any.
    c.) Most current pay stub. Last pay stub from from prior employers within current year, if any.
    d.) Most recent 3 months of bank statements (all bank accounts) and brokerage statements.
    e.) Most recent mortgage statement, if applicable.
    f.) Most recent homeowner’s insurance bill and insurance agent’s name and phone number.
In Personal Finance

Getting Ready to Sell You Business – High Level Overview

October 1, 2012 • Jeff Cecchini • Comments Off on Getting Ready to Sell You Business – High Level Overview

This is a good article on a high level overview of getting ready to sell your business.

QBPros can help you structure your company for a future sale. The earlier you plan and get things in proper order, typically the greater benefit. Buyers and their representatives typically look back 3 to 5 years to the financials and key performance indicators as valuation factors. We can help get things presented in the best light for you and help faciliate a safe, sucessful sale.

http://blog.intuit.com/money/getting-ready-to-sell-your-small-business-infographic/?cid=sf6240657

 

In Business Management

Tax Court: Itemized receipts required to substantiate deductions.

September 6, 2012 • Jeff Cecchini • Comments Off on Tax Court: Itemized receipts required to substantiate deductions.

A recent court case (Gorokhovsky v. Commissioner, T.C. Memo. 2012-206) disallowed deductions because the taxpayer lacked itemized receipts necessary to substatiate deductions.

Main Issue: Credit card statements and cancelled checks while are important to prove payment, do not contain the detail and itemization necessary to substantiate a deductable business expense, nor do self-generated expense records. Third-party vendor receipts are needed.

Some of the case highlights that the tax court uphelad for the Commissioner:

  • Generally, the Commissioner’s determination of a deficiency is presumed correct, and the taxpayer has the burden of proving it incorrect. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
  • Deductions are a matter of legislative grace, and taxpayers generally bear the burden of proving their entitlement to the deductions they claim. Sec. 6001; INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992).
  • To be deductible, such expenses generally must be substantiated. See Hradesky v. Commissioner, 65 T.C. 87 (1975), aff’d per curiam, 540 F.2d 821 (5th Cir. 1976); see also sec. 6001; sec. 1.6001-1(a), Income Tax Regs. A taxpayer must keep records sufficient to establish the amounts of the expenses reported on his return. Sec. 6001; sec. 1.6001-1(a), (e), Income Tax Regs.
  • In other cases we have repeatedly concluded that self-generated or nonitemized receipts or expense records are insufficient to substantiate expenses. See, e.g., Robinson v. Commissioner, T.C. Memo. 2011-99 (holding that the taxpayer’s self-generated expense logs, nonitemized receipts, and nonitemized credit card statements were insufficient to substantiate claimed expenses); Good v. Commissioner, T.C. Memo. 2008-245 (holding that the taxpayers’ self-generated computer records and testimony were insufficient to substantiate claimed expenses); Gaylord v. Commissioner, T.C. Memo. 2003-273 (holding that the taxpayer’s nonitemized receipts and self-generated receipts were insufficient to substantiate claimed expenses).
  • We conclude that the self-generated, handwritten records petitioner submitted are insufficient to show either that petitioner paid the claimed expenses or that those expenses are deductible business expenses.
  • With respect to petitioner’s bad debt expenses, that even had petitioner established that he had uncollected receivables, he failed to establish that he took steps to enforce collection or that taking such steps would have been futile. Without such evidence, a debt generally is not regarded as wholly worthless. Perry v. Commissioner, 22 T.C. 968, 974 (1954); John v. Commissioner, T.C. Memo. 2004-257.
  • Finally, we consider whether petitioner is liable for the accuracy-related penalty pursuant to section 6662 with respect to his 2004 tax liability. Section 6662(a) imposes an accuracy-related penalty of 20% of any underpayment that is attributable to causes specified in subsection (b), including a “substantial understatement of income tax” or “[n]egligence or disregard of rules or regulations.” There is a “substantial understatement” of income tax for any tax year where the amount of the understatement exceeds the greater of 10% of the tax required to be shown on the return for the tax year or $5,000. Sec. 6662(d)(1)(A).

Source: http://scholar.google.com/scholar_case?case=8009074048903068020&q=Gorokhovsky+v.+Commissioner&hl=en&as_sdt=2,42&as_vis=1

 

 

In IRS Tax Info

Turning off things that auto start in Windows

August 31, 2012 • Jeff Cecchini • Comments Off on Turning off things that auto start in Windows

Turning off things that auto start in Windows

In WinXP or Windows Server 2003, there are at least four areas to look:

  1. Does the offending application have a setting to disable automatically starting, perhaps in a system tray icon, the application itself, or antoher config application in the start menu group?
  2. Look in C:\Documents and Settings\[User Name] or [All Users]\Start Menu\Programs\Startup. Delete the icon(s) whose applications that you do not want tostart up. Alternatively you can copy and paste into other users. Look in both of these locations path locations.
  3. In the Run box, type msconfig. Click Startup tab and un-click those items you do not want to start automatically.
  4. Things that autostart without being present in the startup folder are often found in registry under:
    HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Run (all user on the server) HKCU\SOFTWARE\Microsoft\Windows\CurrentVersion\Run (current user)
    Look for a key and if found delete it. I often do an Alt+Print Screen to take a picture of the setting before I delete it in case the deletion causes some other problems.

 

In Windows

Turning off #Facebook notifications when you think you have!

July 28, 2012 • Jeff Cecchini • Comments Off on Turning off #Facebook notifications when you think you have!

When  you think you’ve turned off Facebook notifications in your settings but still get some, this is what you can do:

Unfollow a Facebook post from the new notification box.

  1. Click the globe icon
  2. Hover your mouse over the notification you want to stop seeing and click the X that appears
  3. Click Turn off (or unfollow).

 

“Close friends” can generate a notification.

When you add one of your friends to your Close Friends list, you’ll automatically receive notifications about what that friend posts on Facebook. You can adjust the settings for these notifications:

  1. From your news feed (Home button), click Friends in the left column. You might have to click More to see the Friends section.
  2. Click Close Friends to view the list.
  3. Click the Notifications dropdown in the top-right corner.
  4. Choose whether you want to turn off these extra notifications.

Alternatively, you can keep notifications on for close friends, but remove people from the close friends list that you don’t want to receive notifications for.

Source: http://howto.cnet.com/8301-11310_39-57437395-285/easily-unfollow-a-facebook-post-from-the-new-notification-box/
Source: https://www.facebook.com/help/?faq=390022341057202&in_context

In Social Media & Networking

Andriod Tasks App that Syncs with Google Apps’ Tasks

July 28, 2012 • Jeff Cecchini • Comments Off on Andriod Tasks App that Syncs with Google Apps’ Tasks

Just learned about a great Tasks app for Andriod devices that syncs with Google Apps’ Tasks.

You can download for free from Google Play. The free version is sponsored by ads but is advertising free for 10 day evaluabtion. $0.99 after that gets no ad version.

https://play.google.com/store/apps/details?id=ch.teamtasks.tasks.paid

https://www.youtube.com/watch?v=n5JOeEWbsGM

Source: http://productforums.google.com/forum/#!topic/mobile/qVlYdbJUQsU

In Mobile