Tax Return Filing Deadline October 15, 2012

With only a few days to go to the income tax return filing deadline make sure you contact your tax preparer as soon as possible. The filing deadline for extended 2011 income tax returns, forms 1040, 1040A and 1040EZ is Monday October 15, 2012.

If you miss the deadline you will be charged a late filing penalty of 5% of any unpaid tax for each month the return is late up to a maximum of 25%. So for example if you owe $1,000 tax on the return your late filing penalty will be $50 each month the return is late up to a maximum of $250.

A 1/2% late payment penalty will also be charged on the unpaid tax together with interest. This runs from April 17, 2012.

These penalties can add up making it all the more important to see your tax preparer before the filing deadline.

If you need assistance with the tax preparation and filing of your 2011 income tax return we will be open all day on Saturday October 13, 2012 and Sunday October 14, 2012. To make an appointment call Mark Smith on (480) 363-4808.

Disclaimer – This article does not constitute personal tax advice to the reader and is only offering general information. You should seek professional advice for your own situation as the most appropriate tax planning depends on your personal and unique circumstances.

QuickBooks 2013 Now Available – What’s New

QuickBooks 2013 is now available for purchase.

Continuing the theme of recent updates to QuickBooks most of the changes in QuickBooks 2013 are incremental. This is not surprising as QuickBooks is a mature software product. Also, in a recent interview, Brad Smith the CEO of Intuit, indicated that they are now focusing more on the “Cloud” with the majority of their QuickBooks resources now directed towards QuickBooks Online.

So, should you upgrade to QuickBooks 2013?

If any of the new features discussed below will benefit your business then upgrading would make sense. Also, if you use any of the connected services such as Payroll or Billing Solutions then you need to be aware that support for QuickBooks 2010 will sunset in the summer of 2013. Once the support is finished you will no longer be able to use QuickBooks 2010 with those services and will then need to upgrade to QuickBooks 2013. If none of the above affect you then you can happily continue using your existing version of QuickBooks.

So on to the exciting part of this article, what is new in QuickBooks 2013.

QuickBooks Pro, Premier and Enterprise

  • Cleaner Interface – This is the big change which everybody upgrading from an earlier version of QuickBooks will notice. The interface has been modernized and made more consistent throughout the product. In addition a Ribbon now appears on transaction documents grouping together all the key tasks that can be performed on that transaction and bringing to the fore some actions that were previously hard to find. This should make it easier to complete tasks.
  • Navigation Bar – A new navigation bar now appears on the left hand side of the screen with shortcuts to key parts of the program. It also offers shortcuts to apps that may improve the efficiency of your business.
  • Improved Centers – The customer, vendor and payroll centers have been enhanced with more information brought together in one place making it easier to get a full picture of your customers, vendors or employees.
  • Improved Maximize Forms – There is now a readily identifiable maximize button on transaction forms if you find it easier to work on transaction forms in a maximized view.
  • Time and Expense Preference – It is now possible to set a company preference that makes all time entries or expenses billable.
  • Printing Vendor Bills – It is now possible to print vendor bills.
  • Bill Credits Appear On Check Stubs – If a credit has been applied to a bill that is being paid the credit will now appear on the bill payment stub.
  • Assign Default Online Payment Method – A preference can now be set so that an on-line payment link is entered on all invoices together with a preferred payment method, bank and/or credit card.
  • Cut and Paste Into Search Field – Information can now be pasted directly in to the search box.

QuickBooks Enterprise

  • Reports Preferences For Item Based Reports – It is now possible to choose how much identification information to print for each item such as name, description or both.
  • Default Class Assignment – Items can now be set up with a default class which will then be automatically entered in transactions.
  • Increased List Limits – The number of entries in lists has been significantly increased. Note that the number of items in a Group or Sales Tax item has increased from 20 to 50 and this also applies to QuickBooks Pro and Premier.
  • Available Quantity Now Shown On Reorder Reports – When selecting inventory reorder reports is is now possible to include or exclude the available quantity.
  • Auto Create Purchase Orders – With this new feature purchase orders can be automatically created by clicking the Create Auto POs button on inventory status reports.
  • Bin Location Tracking – This new feature creates inventory bins that are effectively sub sites of the main site.
  • Barcode Scanning – With a bar code scanner it is now possible to speed up data entry.
  • FIFO Lot Cost History Report – A new report that allows the user to see how the FIFO inventory valuation is being calculated.

QuickBooks Accountant and Enterprise Accountant

  • Send Journal Entries – With this new feature an accountant can email to their client journal entries which the client can then easily enter in to their system.
  • Batch Enter Transactions – This new feature enables accountants and bookkeepers to process bank and credit transaction more efficiently.
  • Write Off Invoices in Client Data Review – This has been improved so that the write off is done as a credit memo and can use items. This will make sure that sales tax is now accounted for correctly on write offs.

QuickBooks For Mac 2013

  • Data Import – Customer and service or product details can now be imported from the address book or spreadsheets to speed up the setting up of a new file.
  • Improved User Guidance – More helpful tips, video how-tos and tutorials help the new and existing make the most of the software.
  • Document Attach – It is now possible to attach documents to related transactions.
  • Batch Invoicing – With this new feature an invoice for the same service can be set up as template and used to simultaneously invoice multiple customers.
  • Intuit Payment Network – This allows customers to pay invoices on-line.
  • Improved Bank Reconciliation – Users can now view previous reconciliations.

Over the next few weeks I will publish more articles going in to more detail on some of the new and improved features in QuickBooks 2013.

In the mean time if you want to discuss how QuickBooks 2013 might help your business call me on (480) 363-4808.

Key Tax Deadlines – October 2012

The usual employer tax deadlines continue through the month for paying over tax payments to the IRS. If you have been paying quarterly remember to check each quarter that you are still eligible to do so. The test only goes back one quarter.

Other tax deadlines this month include:

October 10 – Employees must report to their employer all tips for September if they total more than $20.

October 15 – Individuals who filed an extension must file their 2011 tax returns, forms 1040, 1040A or 1040EZ.

October 31 – Employers must file form 941 Employer’s Quarterly Federal Tax Return for the third quarter of 2012.

The big one this month is the 1040 filing deadline. Make sure that you get the information to your tax preparer well in advance of the October 15, 2012 deadline.

We will be open all weekend October 13 and 14, 2012 so call us on (480) 363-4808 if you need any assistance filing your 2011 tax return by the deadline.

Posted by Mark Smith an accountant and tax preparer with over 29 years accounting and tax experience. He is the owner of Cranmere Accounting and Tax Services LLC. He can be contacted on (480) 363-4808 or by email at info@cranmereaccountingandtax.com if you need assistance with any of the above.

Disclaimer – This article does not constitute personal tax advice to the reader and is only offering general information. You should seek professional advice for your own situation as the most appropriate tax planning depends on your personal and unique circumstances.

Key Tax Deadlines – September 2012

The usual employer tax deadlines continue through the month for paying over tax payments to the IRS. If you have been paying quarterly remember to check each quarter that you are still eligible to do so. The test only goes back one quarter.

Other tax deadlines this month include:

September 10 – Employees must report to their employer all tips for August if they total more than $20.

September 17 – Individuals pay third estimated tax payment for 2012. If you have had a big change in your circumstances this year such as a big increase in income or change in deductions or exemptions it may be worth getting your tax preparer to check if you need to start making estimated tax payments.

September 17 – Partnerships must file their 2011 tax return form 1065 if they have an extension. There are heavy penalties for late filing of the form 1065. If the return is filed late the late filing penalty is $195 per partner per month the return is late, up to 12 months late. It doesn’t take long for this penalty to build up.

September 17 – Corporations and S-Corporations must file their 2011 tax return forms 1120 and 1120S if they have an extension. The late filing penalty for form 1120 corporation tax returns is tax related like it is for individuals. It is 5% of the unpaid tax for each month the return is late up to a maximum of 25%. For S Corporations filing form 1120S the late filing penalty is the same as for partnerships at $195 per member per month the return is late, up to 12 months late.

If you need assistance with preparing your 2011 Partnership Tax Return form 1065, 2011 Corporation Tax Return form 1120 or 2011 S-Corporation Tax Return form 1120S we would be pleased to help you. More details about our business tax preparation services are available on our business tax page.

A heads up for October 2012. Individuals who filed an extension must file their 2011 tax returns, forms 1040, 1040A or 1040EZ by October 15, 2012. So, now is a good time to set an appointment with your tax preparer to get your return prepared and filed by the deadline.

Posted by Mark Smith an accountant and tax preparer with over 28 years accounting and tax experience. He is the owner of Cranmere Accounting and Tax Services LLC. He can be contacted on (480) 363-4808 or by email at info@cranmereaccountingandtax.com if you need assistance with any of the above.

Disclaimer – This article does not constitute personal tax advice to the reader and is only offering general information. You should seek professional advice for your own situation as the most appropriate tax planning depends on your personal and unique circumstances.

Key Tax Deadlines – August 2012

The usual employer tax deadlines continue through the month for paying over tax payments to the IRS.

Other tax deadlines this month include:
August 10 – Employees must report to their employer all tips for July if they total more than $20.

As this is a quiet month for tax deadlines you may want to start preparing for some September deadlines. These include:

  • Individuals paying third estimated tax payment for 2012
  • Partnerships filing form 1065 if they have an extension
  • Corporations and S-Corporations filing forms 1120 and 1120S if they have an extension

For the Partnership tax return 1065 and the Corporation tax returns 1120 and 1120S you may wish to start making arrangements with your tax preparer or accountant so that these returns can be completed before the deadlines.

For individuals who have had a big change in their circumstances this year such as big increase in income or change in deductions or exemptions it may be worth getting your tax preparer to check if you need to start making estimated tax payments.

Posted by Mark Smith an accountant and tax preparer with over 28 years accounting and tax experience. He is the owner of Cranmere Accounting and Tax Services LLC. He can be contacted on (480) 363-4808 or by email at info@cranmereaccountingandtax.com if you need assistance with any of the above.

Disclaimer – This article does not constitute personal tax advice to the reader and is only offering general information. You should seek professional advice for your own situation as the most appropriate tax planning depends on your personal and unique circumstances.

Mark Smith Achieves QuickBooks Enterprise Solutions Certification

We are pleased to announce that Mark Smith has achieved his QuickBooks Enterprise Solutions® Certification.

Certified QuickBooks Enterprise Solutions ProAdvisorAs a Certified QuickBooks Enterprise Solutions ProAdvisor® Mark is able to offer a full range of services to mid market clients who wish to operate their businesses more efficiently and effectively. Our QuickBooks Enterprise Solutions services page provides more details of these services, including purchase, setup, training and support.

QuickBooks Enterprise Solutions is designed for mid market businesses who have either outgrown QuickBooks Pro and Premier or wish to transfer from another mid market accounting solution. It is a cost effective and robust accounting product that scales as a business grows.

To make an appointment with Mark call (480) 363-4808, email us, or book an appointment using the appointment manager on our web site.

Mark Smith Achieves QuickBooks Point Of Sale Certification

We are pleased to announce that Mark Smith has achieved his QuickBooks Point Of Sale® Certification.

Certified QuickBooks Point Of Sale ProAdvisorAs a Certified QuickBooks Point Of Sale ProAdvisor® Mark is able to offer a full range of services to retail clients who wish to operate their businesses more efficiently and effectively. Our QuickBooks Point Of Sale services page provides more details of these services, including purchase, setup, training and support.

QuickBooks Point Of Sale is designed for retail businesses to help them comprehensively manage their sales process. From inventory control through ringing up sales and managing customers the software helps retail businesses make better business decisions that help them grow.

To make an appointment with Mark call (480) 363-4808, email us, or book an appointment using the appointment manager on our web site.

Just Launched – Intuit Snap Payroll

UPDATE – Intuit discontinued this app on December 31, 2014.

Intuit has just launched Intuit Snap Payroll. It is a free simple app for the iPhone and iPad for calculating the payroll for your employees.

Note that this is a very basic payroll calculation app so will only be suitable if you have a limited number of employees and those employees have very straightforward payroll situations. Anything more complicated will require a different payroll solution.

As of the date of this posting the app is available for payrolls operating in 12 states with more to follow. To see if your state is included go to the Intuit Snap Payroll web site.

Charlie Russell at the Sleeter Group has posted a good overview of the app together with screen shots.

Key Tax Dates – July 2012

A little bit late posting this but July is a quiet month for tax deadlines.

The usual employer tax deadlines continue through the month for paying over tax payments to the IRS.

Other deadlines this month include:
July 10 – Employees must report all tips for June if they total more than $20.
July 31 – Employers file 2011 forms 5500 or 5500-EZ for calendar year employee benefit plans.
July 31 – If FUTA owed for period to June is more than $500 deposit amount due with the IRS.

Posted by Mark Smith an accountant and tax preparer with over 28 years accounting and tax experience. He is the owner of Cranmere Accounting and Tax Services LLC. He can be contacted on (480) 363-4808 or by email at info@cranmereaccountingandtax.com if you need assistance with any of the above.

Disclaimer – This article does not constitute personal tax advice to the reader and is only offering general information. You should seek professional advice for your own situation as the most appropriate tax planning depends on your personal and unique circumstances.

Why Do You Need Accounting Records?

Accounting RecordsYou may well be asking do I really need to maintain accounting records for my business? Surely at the end of the year I can just give my accountant a big shoe box full of receipts and invoices.

Well, you could do that, but here are some good reasons for maintaining accounting records.

Monitor Your Financial Performance
This should be the number one reason for maintaining accounting records. Without regular financial updates from management accounts it becomes difficult if not impossible to monitor the performance of your business.

One of the top reasons businesses fail is poor accounting. Without knowing how well the business is doing the owners will often not discover until it is too late they have a problem. This can often be the case where the owners of the business concentrate on only one performance measure such as sales. It is no good having rising sales if those are not converting in to profits and cash.

How often you monitor your financial performance will depend on the complexity of your business. For some very small businesses it may only be quarterly but for most it will be at least monthly.

If you don’t have the skills yourself to monitor the financial performance of your business talk to your accountant. The relatively modest investment in their time and skills will go a long way to improving the financial performance of your business.

Satisfy IRS Record Keeping Rules
The IRS expects you to keep accounting records to support the entries on your income tax return. Without reasonable accounting records it is going to be difficult to do effective tax planning so that you get the best tax position for your circumstances.

Apart from supporting your income entries, good accounting records provide the support for the deductions you claim. So keep all those receipts for expenses that you claim and make sure they are correctly analyzed in your accounting records.

If you are not sure what information to keep and record to help with the preparation of your tax return talk to your accountant or tax preparer. You can also read our article on a tax year end accounting checklist.

Budgeting and Forecasting
This ties in with monitoring your financial performance. Without up to date financial information you will not be able to properly budget or forecast for the future.

As noted above many businesses fail due to poor accounting and that includes not making sensible if any profit and loss or cash flow forecasts for the future.

Obtaining Funds For The Business
Most lenders or investors are going to want to see up to date financial statements as well as budgets or forecasts. Don’t expect to get a favorable response if you approach them with your shoe box of receipts.

Although maintaining accounting records can be tedious and often gets relegated to the bottom of the pile it is a very key part of running a business. Don’t fall in to the trap of putting it to one side. Start today at getting your accounting records up to date and if you need help talk sooner rather than later to your accountant.

Posted by Mark Smith an accountant and tax preparer with over 28 years accounting experience helping clients to maintain effective accounting records. He is the owner of Cranmere Accounting and Tax Services LLC. Although Mark would be happy to deal with your shoe box of receipts he would much prefer to see your business succeed by maintaining good records. Contact Mark on (480) 363-4808 or by email at info@cranmereaccountingandtax.com.

Disclaimer – This article does not constitute personal accounting or tax advice to the reader and is only offering general information. You should seek professional advice for your own situation as the most appropriate accounting and tax planning depends on your personal and unique circumstances.

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