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Less Taxing Services | Accounting and Tax Preparation Naples, FL https://lesstaxingservices.com We Make Your Financial Life Less Taxing! Fri, 01 Sep 2017 00:52:10 +0000 en-US hourly 1 https://wordpress.org/?v=5.8.2 https://lesstaxingservices.com/wp-content/uploads/2017/07/cropped-LessTaxingServices_favicon-32x32.png Less Taxing Services | Accounting and Tax Preparation Naples, FL https://lesstaxingservices.com 32 32 What To Know Before Giving To A Thrift Store https://lesstaxingservices.com/what-to-know-before-giving-to-a-thrift-store/ https://lesstaxingservices.com/what-to-know-before-giving-to-a-thrift-store/#respond Thu, 31 Aug 2017 01:20:36 +0000 https://lesstaxingservices.com/?p=2563

What To Know Before Giving To A Thrift Store

Have you noticed, when making a donation to places like Goodwill, Salvation Army, etc, the donation voucher they give you is blank?  Every year, we get tons of these blank slips as no one ever knows what to do with them.

When you donate stuff (called a non-cash charitable contribution in tax speak) it falls on YOU to value the items.  But, how do you place a value on stuff you’re about to give away?  There are actually a few acceptable options, but using “thrift store value” is the easiest.

This guide gives you a range of values for the most often donated items.  So, the next time you clean out the closet, value everything up and fill out the voucher so you’ve got a solid tax deduction!

Download the Guide Here

Charitable Donation Guide

 

Mike Russo

Less Taxing Services, LLC

Taxes – Bookkeeping – Accounting | Naples, FL

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Quickbooks Online – Add vs Match https://lesstaxingservices.com/quickbooks-online-add-vs-match/ Wed, 30 Aug 2017 01:49:00 +0000 https://lesstaxingservices.com/?p=2552

Quickbooks Online –
Add vs Match

Add vs MatchQuickbooks Online’s most important feature is the ability to download transactions from your bank and credit card accounts.  Once the transactions are downloaded, QBO needs to know if it matches what’s already in the system or if it needs to be added. This simple sorting can save tons of data entry time when used correctly, but can also create a whole new level of mess when used wrong!

 

What’s The Difference?

  • When you click add, you’re telling QBO this transaction isn’t already in the system.  The vendor and account you set are how you want it recorded in your general ledger.  You aren’t trying to tell QBO this expense matches bills you’ve already entered or that this deposit is the combination of multiple invoices getting paid and deposited.
  • When you click match, QBO is confirming this item from your bank feed matches something else you’ve already entered.

 

Why Does It Matter?

QBO MenuLet’s say you’ve invoiced Mrs. Jones for $500 and Mr. Smith for $600.  Both paid you with a check.  When you go to your bank, you’ll make one deposit for $1,100.  If you correctly received payment for both invoices then did a bank deposit, when the $1,100 comes through the bank feed, it will match.  If you completed only some of the steps above, the payment won’t match.  If you click add at that point, you might have just duplicated income!

 

Duplicated Income Means Paying More Taxes!!!

 

write checkAnother example.  If you wrote a check to a vendor for $327.26 but the bank thought your 6 looked like an 8 so they cashed the check for $327.28 you wouldn’t have a match.  If you don’t enter checks into QBO as you write them…or better yet, print the checks right from QBO…you’d never catch this mistake.  While a mistake of $.02 may not seem like a big deal, what if the check was for $627.23?  A $200 dollar mistake could be a really big deal!

 

How Should Things Work?

In a perfect world, you’d never use the add function.  Every transaction would be entered into QBO as you spent the money and when transactions come through the bank feed, you just match them up.  In reality, we need to meet in the middle.

I believe you should never add income if you are creating invoices and/or sales receipts in QBO.  Income should always be a match.  Expenses, I don’t mind using add for items that were done electronically such as swiping the debit or credit card, but for checks where a human could make an error, I want to match.

Ultimately, you need to develop a system for your business that is consistent.  Having a consistent approach can prevent many problems that could become very costly to fix.

Mike Russo

Less Taxing Services, LLC

Taxes – Bookkeeping – Accounting | Naples, FL

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Quick(books) Review https://lesstaxingservices.com/quickbooks-review/ Thu, 20 Jul 2017 01:31:34 +0000 https://lesstaxingservices.com/?p=2506

Quick(books) Review

Our Quick(books) Review sessions are back in full swing.  These sessions were very popular last summer and made tax time much Less Taxing for so many people.  During this one hour session, we’ll:

  • Balance SheetReview your Balance Sheet line by line to ensure accuracy
  • Explain what the balance sheet is telling you about the health of your business
  • Review your Chart of Accounts providing feedback on ways to generate more meaningful reports
  • Review your Profit and Loss statement for proper COGS vs expense categorization
  • Compare monthly reports for inconsistencies in data entry
  • Review Accounts Receivable so you know exactly what money is due to the business
  • Review Accounts Payable so you know who is waiting to get paid
  • Discuss Tax Law changes that might affect the deductible status of certain expenses

When our session is over, you’ll receive a written action plan outlining any changes, adjustments or fixes needed to get your books in tip top shape.

 

We do these sessions with screen share software so you can talk to us from the comfort of your own home or office with no need to drive across town!

This professional review costs $100.00 and can be set up at the link below.

Schedule your Quick(books) Review NOW!

Mike Russo

Less Taxing Services, LLC

Taxes – Bookkeeping – Accounting | Naples, FL

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12 Days of Tax Planning https://lesstaxingservices.com/12-days-of-tax-planning/ Thu, 01 Dec 2016 01:52:29 +0000 https://lesstaxingservices.com/?p=2408

12 Days of Tax Planning

  1. Organize Receipts/Paperwork – The more organized you are now, the better information you’ll have for tax planning.
  2. Defer Income (end of year bonus, etc.) – Pushing income from this year to next could result in paying less overall tax on that money.
  3. Bunch/Accelerate Deductions (charitable, Medical, etc.) – Never spend money in January, February, and March that you could have spent in November or December. Pushing medical spending into one year helps with deductibles and gives you a better chance to cross the threshold for tax deductibility.  Likewise, giving to a charity early and late in the same year rather than every year increases your ability to itemize deductions.
  4. Maximize Retirement Plan Contributions (especially if there is an employer match) – If your employer matches any of your retirement plan contributions, ensuring you get the maximum match is an easy way to put more money toward your retirement. If you’re self-employed, deferring income in a retirement account such as an IRA, SEP IRA, SIMPLE, etc can lower current year tax significantly.  However, you’ll be hedging your bets that in future years you’ll be in a lower tax bracket.
  5. Contribute to an HSA – Contributions to an HSA can be a great way to save a little on the costs of health care, but it can also become a supplement to an overall retirement plan strategy.
  6. Harvest Investment Losses – If you’ve got some loser stocks, use them to offset income. You can use up to $3,000 a year to offset other income.
  7. Make 529 plan contributions – The contributions made to a 529 plan won’t lower any current tax, but the funds grow tax free. This can mean significant extra money is available when it comes time for the little ones to go to college.
  8. Convert IRA funds to Roth IRA – When a year presents itself where income is lower than expected, converting IRA funds to a Roth IRA could be a way to allow that money to grow tax free. (This can be very tricky though….don’t attempt this on your own!)
  9. Get rid of PMI – There is a really good chance the deduction for Private Mortgage Insurance will go away. If you’re close to the 20% equity mark, get there as soon as you can and then get the PMI removed.
  10. Adjust withholdings/Make Estimated Tax Payments – Look at how much is going toward taxes from your paycheck and make adjustments so you don’t owe anything or get much of a refund at tax time. You can do better things with your money than the government can.  Likewise, if you’re self-employed, get your estimates in so there won’t be any surprises at tax time.
  11. Make Gifts – Gifts up to $14,000 can be given with no tax effect to you or the recipient.
  12. Have a Kid! – Right now, kids can be worth a minimum of $4,000!

Mike Russo

Less Taxing Services, LLC

Taxes – Bookkeeping – Accounting | Naples, FL

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The Importance of Undeposited Funds in Quickbooks https://lesstaxingservices.com/the-importance-of-undeposited-funds-in-quickbooks/ Thu, 24 Dec 2015 15:32:49 +0000 https://lesstaxingservices.com/?p=2213

The Importance of Undeposited Funds in Quickbooks

The single biggest mistake seen when reviewing Quickbooks or Quickbooks Online files is the mess created when the undeposited funds account is not used correctly.

Undeposited Funds is an option in the Deposit to drop down on the Sales Receipt and Receive Payment screens.

Undeposited Funds

When Quickbooks is told to use Undeposited Funds, it knows to hold the deposits in a separate account until they are grouped together to match exactly what is deposited into the bank.  This grouping process makes the books match reality.

As an example:

There are 10 sales in a day and each customer pays with a check.  At the end of the day, the cash box has 10 checks in it that are waiting to go to the bank, but one of the customers asked for their check to be cashed next week.  To accommodate that request, 9 checks would be deposited in the bank, with one left behind to get deposited the following trip.

In the example above, the only way to accomplish this in Quickbooks is with Undeposited Funds.  If the Deposit to field was set to the bank account, then Quickbooks would record each check as it’s own deposit.  This won’t accurately match the single deposit of 9 checks and would lead to a nightmare when it’s time to reconcile the bank account.

With Undeposited Funds is in use, there is one more step to the process.  Go to Bank Deposit and check off the items that are being deposited that day.Bank Deposit for Undeposited Funds

Undeposited Funds Bank Deposit
This step becomes especially important when different types of payments are taken.  Some merchant services (credit card processors) will group everything in one deposit, others will group Visa and MasterCard together while depositing American Express separably.  Of course, cash and checks will go to the bank a different way than the credit cards, so they need to be separated out to match the bank deposit slip.

In other words, Quickbooks needs to match reality!

When deposits are grouped together correctly, reconciling is a piece of cake.  Since everyone likes cake, everyone should like Undeposited Funds.

Go group your deposits, have some cake and call or email us if you run into problems.

Mike Russo

Less Taxing Services, LLC

Taxes – Bookkeeping – Accounting | Naples, FL

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