Microsoft’s Halloween Trick

After providing the technology world with a potential treat earlier this month with the debut of Windows 7, Microsoft closed out the month with a pretty slick trick for their Office Accounting users. According to an e-mail that I got early Friday morning, Microsoft will be discontinuing their Office Accounting product on November 16th of the coming month. This only gives many OA 2009 customers a few days to move their files to another small business accounting software title and that can be quite an expensive and labor intensive task. For me, however I can’t say that I did not see the writing on the wall especially since they stopped selling their MS Money product earlier this year.

Microsoft will still offer support for their product as per the support guide lines in their policy. Add on services that came along with Office Accounting (EBay, Equifax credit profile, tax mappings, and online banking) will be discontinued by December 15th, 2009. For many small business owners this change could be an indication that the time to look into another way of performing your accounting function is in order. There are other small businesses off the shelf software titles that can be used; however there is still the issue of yearly upgrades, costly “advisors” to help you setup the software, and the risk of downtime during the transition and bug fixes. Another option would be to use an online-based, on-demand accounting system that works collaboratively with your accountant. Either way, if you are a small business that uses Microsoft’s Office Accounting product your days are limited. Happy Halloween!!

B. N. S.

QuickBooks Problem….Solved??

Recently I did a post announcing the newest release of QuickBooks 2010 and according to a news article I came across today, this may be a good time to upgrade your software if you have not done so already. According to the article there is a security issue with older version of QuickBooks (2006 and Enterprise 6.0) that is related to Microsoft’s Active X technology. According to Intuit, the makers of QuickBooks, the security issue has been fixed (even though older versions of QB’s are not supported by Intuit) and the 2010 product has been updated also. Kind of makes a person wonder if there is a better way of keeping your small business books? If there are security problems with off the shelf software, I wonder if using an on-demand internet based accounting solution would be more efficient.

With an on-demand accounting solution gone are the days of upgrading your software every year (or three years) because the software maker no longer supports your version, gone are the countless software updates that have to be completed so that your software can operate efficiently. Also gone are the days of working around your accountant’s schedule so that they can make their adjustments to your books and then send them back to you. An on-demand solution may be in your future if you are ready to make the change to the newest technology available with possibly a lower cost of ownership. Be sure to find out the pros and cons of the new technology for yourself with the following article. Enjoy.

B. N. S.

Weekend Shopping

I was in the store this weekend picking up some snacks for the Sunday football games and could not help but notice that some of the sizes of my favorite snacks had been reduced considerably. A 16oz size of snack crackers has been reduced to a 13.4oz and the price is the same or at many times more than what it had been before. I thought to myself that I would have to pass on those snacks and decided to make my own.

When I get into the office this morning and check the newswires, I couldn’t help be click on the following article that essentially deals with my weekend experience. I guess the lesson to be learned from the story and my own experience is to be a more cost conscious consumer.

B. N. S.

Debt Forgiven but not Forgotten

As we continue down the road toward recession or recovery (depending on one’s point of view), there still continues to be a great deal of people who are having problems paying off their debts. Whether it is a house, car, or some other type of property, the process of paying off one’s debts can become quite stressful especially in a cash strapped economy like the one today. From a tax standpoint, the cancellation of a debt can become a bit tricky, but hopefully after reading this post, you will have a little more insight into how the process works.

According to the IRS via Publication 4681, a debt can include any indebtedness for which you are liable or which is attached to property that you hold. In regards to property, cancellation of debt occurs when foreclosure proceeding occurs on the property, the property is repossessed, the property is returned to the lender, or you abandon the property. When debt is canceled by a federal agency or a financial institution amounting to more than $600, you will receive a Form 1099-C showing the amount for the cancelation in Box 2. Typically the amount is taxable as income.

There are additional exceptions and exclusions of debt that would not be taxable, the most major one being the exclusion for principal residence indebtedness. Taxpayers can now exclude up to $2 million in qualified personal residence indebtedness. Be careful, if you used property to secure a debt and the lender takes all or part of the property to satisfy the debt, the transaction can be treated as a sale which could make you have a taxable gain. Be sure to speak to a professional tax advisor before making any decisions regarding the cancellation of debt.

B. N. S.

Looking Thru Windows 7

Well the week is finally upon us. The release of Microsoft’s Windows 7 product will be in stores on October 22 and is sure to bring a great deal of curious shoppers out to see what all the software can do. Windows 7 comes in three different versions (Home, Professional, and Ultimate) and consumers can also purchase the system in laptops and desktops pre-loaded.

So for those out there who hated Windows Vista and/or were still using XP (because you could not use some of the older software), now may be a time to step up into the new technology millennium at upgrade your operating system and your additional software titles to ensure your computer systems keep you productive.

B. N. S.

The Last Minute

So today has been a rather hectic day around the office since the personal tax extension deadline is tomorrow. Couple that with all the tax changes (i.e. first time home buyers, new auto deductions and more) that will expire in the next month, there are a lot of last minute planning strategies many taxpayers are trying to implement. I did however get to take some time out to read my daily tax and accounting e-mails and the one that caught my attention the most was an article regarding changes that will limit the deductions of many sole proprietors (Sch. C filers). According to the article, there may be some changes in the coming years on the amount of deductions that Sch. C filers and the IRS has a few options how they will do it. Be sure to check out the article and let us know your thoughts.

Well back to the tax mines, happy last minute tax filing everyone.

B. N. S.

Tech Updates This Week

There have been quite a few updates in the technology world this week and here are the one’s that caught my attention:

• Find Out if Windows 7 is right for your business
• Sage Software Offers a Free version of Peachtree Accounting to Atlanta flood victims
• Finally I came across a whitepaper detailing how cloud computing will cost small business owners less than off the shelf accounting packages. For more information regarding the whitepaper, feel free to contact us via our website
Enjoy

B. N. S.

Telling Signs of the Economy

The economy may be turning many honest taxpayers into tattle tells according to a recent article I came across. The Tax Relief and Health Care Act of 2006 created the Whistleblower Office and the office has seen a significant upswing in the amount of anonymous tips from law abiding taxpayers of those who shall we say like to live on the wild side of the tax law. Recent changes to the law have increased the payments from 15% to 30% maximum and the increase is certainly making taxpayers feel compelled to tell on those who want to evade taxes. The only problems with the new Whistleblower system is the time it takes for a claim to be processed and protection for employees who turn in their employers for evading taxes. All in all the systems appears to be a new option for many taxpayers to find additional money in this tough economy.

B. N. S.

New Product or New Way of Working

There were two events that happened this past week that are really the driving force behind this blog post, one is the introduction of Intuit’s newest QuickBooks 2010 offering. The marketing e-mails that I have received have promised that the QB2010 version is the best yet and it will save accountants more time when working with their clients due to the enhanced features. For small business owners that are interested in how QB2010 will make them work faster and smarter be sure to take a look at this web review of the product. At the end of the review there is also a way for QB2009 purchasers who bought their software 60 days before the QB2010 release to upgrade their product to the newer version for free.

A free webinar (for my CPE credits) is the other driving force that provided me with a viable option and a new (possibly better) way of performing accounting functions for clients, that allows accountants and small businesses both to work collaboratively. The webinar was titled “How to Transform Your Client Accounting Services Practice through Cloud Computing and On-Demand Accounting” and it explained how accountants and small business owners can use online accounting services instead of boxed software that would allow each to work virtually anywhere, have instant access to current numbers, and the piece of mind that the data is secure. Although the webinar was geared for accountants, small business owners may gain some insight into how cloud computing/on-demand accounting is different (and maybe better) than boxed software or a hosted box software solution.

So as a small business owner which strategy fits your business model? Feel free to post your comments.

B. N. S.

A Flood of Assistance

As many of you have heard on the news, in the past week the Atlanta area received a historic amount of rain that left many of the metro counties flooded. Many of the roads in the local area have been washed away and people’s houses are total losses. The vast majority of these individuals did not have flood insurance and are in great need of support and assistance. Representatives from FEMA, GEMA and the Red Cross are frantically assisting these individuals but more help is needed. I would ask anyone who is able in these trying times to please donate to your Red Cross for victims of the flood and if you are in the local Atlanta area, maybe go out and help in the cleanup efforts.

Additionally for those individuals (or businesses located in the flood areas) that are on tax filing extensions, the IRS is moving the tax filing deadline to Dec. 17th. The postponement is for return filing, tax payment and certain other time-sensitive acts otherwise due between Sept. 18 and Dec. 17. The IRS will also waive the future deposit penalties for employment and excise taxes due on or after Sept. 18th. For more information speak to your tax advisor or stop by the IRS website and put “Georgia Flood” into the search box at the top right hand corner.

B. N. S.

SMB’s Speak Up

This morning I was able to read a pretty revealing survey report sponsored by Netsuite regarding business leaders’ outlook on the economy and the direction they would be taking their firms to survive in the “new economy”. Survey respondents represented over 600 small to mid-sized businesses (SMB’s) and were from all different types of industries. The interesting thing is that the majority of their answers were the same. SMB’s were focused on cutting cost in conjunction with increasing revenue and these strategies are sure to help improve their cash flow.

Specifically SMB’s cost cutting strategies were reducing overhead, improving productivity and streamlining operations. Revenue generating activities included broaden product offerings and increasing revenue from current customers. SMB’s also showed an increased interest in software as a service (SaaS) and cloud computing as a way to improve productivity and reduce overhead.

Can some of these strategies work for you? More than likely yes, so be sure to stop by Netsuite and download the survey report yourself.

B. N. S.

Changes to Tax Filing…Coming Soon

While going through my moring e-mail news I came across some interesting information that islikely to affect everyone who files taxes. According to a report by the Treasury Department’s Inspector General for Tax Administration (TIGTA) they recommend that mandatory electronic filing of individual tax returns by professional tax preparers become a requirement by law. Currently about 43% of the returns filed are filed on paper (for tax year 2008). The IRS feels that by mandatory electronic filing of individual returns, the error rate for returns can be lowered and the IRS can operating more efficiently. The IRS will also begin using scanning technology to convert paper returns to electronic format.

What doe this mean to you?

More than likely if the law is passed, it will mean that the IRS will cut back some of their staff, those paper retuns that have errors will be caught faster with scanning technologies, and those professional tax preparers that do not want to embrace technology may have to look for other ways to bring in more revenue. The IRS is currently asking Congress for authority to make these changes as part of their 2010 fical year budget, so the changes are right around the corner.

B. N. S.

Tech Tools Keeping You Productive

Earlier this week I was speaking to a friend of mine assisting him with getting his small business off the ground and he mentioned that he had recently purchased a merchant account for his business. He will be using the merchant account to sell his motivational CD’s and other products but his problem was how he could sell his products while away from his office at seminars and conventions. That got me thinking if there was a way to use a smart phone as a credit card terminal. I have yet to find a way this can be done with a Blackberry phone, but did come across a couple of iPhone apps that will allow users to use their phone as a merchant terminal. The three that were at the top of the list are:

• Credit Card Terminal by Inner Fence, LLC
• iSwipe Pro Credit Card Terminal by AppNinjas, LLC
• Billing: Credit Card Terminal by Spartadata

As with any iPhone app (or any app for that matter) be sure to read all the fine print and maybe some of the reviews regarding any hidden fees that are not initially mentioned. I found the apps to be a great addition to any small business owner’s productivity toolkit because you can accept credit cards virtually anywhere from any customer, and this can improve your cash flow and allow you to operate your business at a higher level.

As for my friend we are still searching for a Blackberry app that will allow users to do the same. If anyone has any ideas feel free to post them.

B. N. S.

IRS Plans to Retire

Those small business owners that are interested in establishing retirement plans for their employees, the IRS is here to help. Recently the IRS setup a retirement plan website that can assist small business owners with setting up tax-favored retirement plans, maintaining the plan, and fixing any errors that may occur while administering the plan. Setting up a retirement plan has many benefits for both the small business and their employees. Small businesses can benefit from a retirement plan because their contributions being tax deductible, there is a potential for tax credits for setting up a plan, and the possibility of hiring and retaining better employees. Employees’ benefits can include deferred taxes on plan contributions, investment gains on plan assets are not taxed until distribution, and retirement plan assets can be transferred from one employer to the next. These are just a few of the benefits of setting up a retirement plan, be sure to stop by the IRS retirement plan website and see how setting up a plan can benefit your small business and your employees.

B. N. S.

iPhone Productivity

For those iPhone users, I came across a nice little update app that is sure to make you productive while away from the office. The Quickoffice app has been upgraded to support Microsoft Office 2007 so now iPhone users have the ability to edit, cut/copy/paste, and send Office 2007 files to and from their iPhones. The Quickoffice app will only run on iPhone OS 3.0 so if you have not upgraded your iPhone’s operating system now would be a great time to do that too. This app in conjunction with the file saving app mention in an earlier post will save many small business owners a great deal of time when they are away from their offices and need access to mission critical documents. Definitely one to check out.

B. N. S.

More on Banking

There has been a great deal of talk lately regarding the large amount of fees that banks charge consumers and business owners for their accounts. From the accounting discussion groups that I belong to, to the many of my clients whom I provide bookkeeping for, everyone is beginning to get feed up with the many fees banks charge for access to our money. Some of the most common fees I have seen on bank statements are cash deposits fees, not maintaining a minimum balance fee, transactions fees, and of course the monthly maintenance fee.

Well there is hope for the consumer and business owner who is cash strapped at the present time, one thing you can do is go to your bank and see if they have different accounts that do not charge all those unnecessary fees . Another option is to shop around for another bank in your area that offers totally free checking and saving accounts. If there are not any of those options in your area, you can also consider an online bank. These banks usually have free accounts due to the fact that they operate with less overhead than a traditional bank. Either option you choose can possibly save you hundreds of dollars a year.

B. N. S.

Online Banking Dangers

I hope everyone had a safe and enjoyable holiday weekend. Now it is time to get back to business and here is some good information that can help individuals and small business owners keep their bank accounts safe. If you are one that uses online banking, be sure to check out this video and article for some great tips on how to not be scammed by those unscrupulous cyber-criminals out there. If you have ever received one of those suspicious e-mails saying that it is from your bank, make sure you contact your bank first before clicking any of the links contained within the e-mail. The majority of the time these e-mails are from hackers attempting to get your personal information.

B. N. S.

Auditors are getting social

For the taxpayers out there who feel they can outsmart their state auditors, beware? According to a recent article in the Wall Street Journal, tax agents in Nebraska, Minnesota, and California (probably are more states that will jump on the bandwagon) are taking their enforcement tactics to the internet. Taxing authorities in these states are beginning to use social networking sites to find and locate tax cheats who have moved out of their state by finding information about them on sites like MySpace and FaceBook. The auditors still have to follow the rules of the social networking site (such as they cannot befriend a person on Facebook using false information), but the use of tracking tax cheats via social media and Google is beginning to catch on. More states are considering adding social media tracking to their arsenal for locating tax cheats and the IRS declined to comment on if they were using social media (wink, wink). Be sure to check out the article and see how some people got caught.

Moral to the story is to seek out a professional tax preparer and pay what you owe, for the tax man is coming to get you and he has a new way to track you now.

B. N. S.

Smart Technology

Continuing on the technology theme of the last post, I came across a possible jewel for those small business owners (and tech savvy individuals) with smart phones that need information while away from a computer. If you are taking your small business paperless, or have been thinking about it, be sure to check out Filesanywhere.com. With their service you can access and share your files with anyone, backup and synch files, and collaborate online.

Now what makes the service a jewel is that the company has recently added an iPhone app allowing you access to your files and services while away from your computer. They also have a mobile login that allows other smart phone users access to their files and share them with others. We will be testing the service over the weekend and will post a brief overview of how it works.

B. N. S.

Phone Smarts

Your phone is getting smarter according to an article Fortune magazine. The demands for smart phones are increasing and not only are they for the Wall Street business types, but consumers and small business owners are beginning to buy in. The two major players are RIM who makes the Blackberry (also known as the “crack” berry) and Apple, makers of the iPhone. Each has seen sales gains in areas you would not think they would. RIM’s sales gains are from consumers and businesses are starting to see the iPhone as viable option. I was quite intrigued by the small test you can take to see which phone is right for you. Be sure to check out the test and see which phone is the smart one for you.

B. N. S.