Quickbooks Android App Now Supports Switching Companies
Good news accountants: The Quickbooks app for Android devices now supports switching between different companies.
It’s not uncommon for professional accountants to handle bookkeeping for several different companies. While Quickbooks supports the use of multiple companies in its software, this feature has been lacking in its compatible Android app — up until now at least.
In a recent blog post, Intuit announced that the latest release of Quickbooks Android supports the use of multiple companies. So, what does this mean exactly? Assuming you have two or more company subscriptions in Quickbooks Online — Intuit’s cloud-based subscription model for Quickbooks — you can alternate between them on your Android smartphone or tablet. It’s a relatively simple feature that’s sure to improve the productivity and efficiency for many professional accountants who Quickbooks.
As explained by Intuit, users can have multiple subscriptions in Quickbooks Online with as many companies as they’d like. The latest version of the Quickbooks app for Android further enhances the app’s utility by supporting the use of multiple companies.
“You can have multiple company subscriptions in QuickBooks Online and have as many QuickBooks Online companies as you’d like. And now, with the latest release of QuickBooks Android, you can easily switch between your companies on your phone or tablet,” wrote Quickbooks when announcing the change.
So, how exactly do you switch between companies in the new Quickbooks app for Android? After downloading the new app, double-tap it to open and then access the main menu. From here, you can tap your company to bring up a list of all your associated companies for which you have a paid Quickbooks Online subscription. Now choose the other company and it will switch to that company. Sorry if you were expecting more, but that’s all it takes to switch between companies in the new Quickbooks app for Android!
Support for multiple companies isn’t the only change Intuit made to its Android app. This release, like many before it, brought new performance improvements and security enhancements.
If you’re interested in downloading and using the new Quickbooks Android app, you can access it either on Google Play or by visiting this link. Quickbooks Android is free to download, although you’ll need a paid Quickbooks Online subscription to access all of its features, including the ability to switch between different companies.
What do you think of the new Quickbooks Android app?
Records that Small Business Owners Need to Keep
Good accounting practices are critical to running a successful small business. Unfortunately, many small business owners overlook this step, assuming it’s nothing more than a waste of time. But when tax time rolls around the following April, they are left scrambling to find their financial records and other related documents. This is why it’s a good idea to start keeping good records from the moment you launch your business. So, what records exactly should you keep?
Business Expenses
Arguably, one of the most important records to maintain is your business-related expenses. In other words, you’ll need records of each and every expense that’s directly associated with running your business. When it comes time to do your taxes, you can write these expenses off, allowing you to keep more of your business’s revenue. Without proper records, the Internal Revenue Service (IRS) may deny your expenses.
Contracts
Of course, it’s a good idea to keep copies of any contracts you have with clients, customers or other businesses. Even if you never need them, having them on hand will provide a source of reference. If you tend to lose paper documents — like many small business owners do — consider scanning your paper contracts and storing the digital copies on your computer or an external storage device.
Payroll
Assuming you have one or more employees on your business’s payroll, you’ll need to records of how much you pay them and when. While payroll records isn’t a requirement when running a sole proprietorship, it is a requirement when running a Corporation. Talk with a professional accountant for more information about payroll bookkeeping.
Bank Statements
Try to get into the habit of storing records of all business bank accounts, including monthly statements. The good news is that even if you lose any of your bank statements, you can typically purchase copies from the banks. Banks are required by federal law to maintain records of customers’ bank accounts for a minimum of seven years. Assuming you are within this limit, you can request a copy from your bank.
These are just a few of the many records that you’ll want to keep when running a small business. Other records to keep include credit card statements, loan documents, petty cash, travel receipts, quarterly tax payments (estimated), inventory, check stubs and income.
Did we leave anything out? Let us know in the comments section below!
How to Write Off Bad Debt in Quickbooks
If you recently sold a product or service but don’t expect the customer to pay, you’ll need to write this “bad debt” off in your respective accounting software. Thankfully, Quickbooks makes it handling bad debt such as this a breeze. In just a few simple steps, you can write it off so you aren’t forced to pay income taxes on it.
There are actually several different ways to handle bad debt in Quickbooks, one of the easiest being the cash basis method. Assuming you file your taxes on a cash basis, this is the best way to handle bad debt. To do so, log into your Quickbooks account and void the original invoice by choosing Customers > select the appropriate customer > Open Invoices > choose the date range > select the invoice > More > Void > confirm that you wish to void the invoice by clicking “Yes.” If you have multiple invoices that you with to avoid, repeat these steps and choose the appropriate invoice.
It’s a good idea to get into the habit of adding a memo to the voided invoice so you know it’s bad debt. Voiding an invoice doesn’t delete it, so you can still reopen it and add a memo. Go back into the voided invoice and enter “Bad Debt,” along with any other information that you wish to keep for reference purposes. When you are finished, click Save to complete the process.
But what if the customer paid part of an invoice? In this case, you’ll want to open the original invoice and enter a new line using the product or service. Next, change the description to “Bad Debt,” and under the amount field, enter the balance due in the form of a negative number. If the customer owes $300, for instance, enter “-$300” in the amount field. Click Save to complete the process.
You can also make a note of a customer’s bad debt by accessing Customers > choose the customer from the drop-down list > Edit > and in the “Display Name as” field, type “Bad Debt” or “No Credit.” When you are finished, click save to complete the process. This note will appear in lists and reports when you create a sales transaction in which the customer’s name is selected. It will not show up, however, in cash-only invoices with the respective customer.
Did this tutorial work for you? Let us know in the comments section below!
Benefits of Using a Limited Liability Company (LLC) for Your Business
One of the many decisions you’ll have to make when starting a business is choosing the right legal entity. There are several different legal entities available for business owners, including a sole proprietorship, S-Corp, C-Corp and limited liability company (LLC). Sole proprietorship, for instance, is the most basic structure, requiring no additional steps to be taken. Today, however, we’re going to take a closer look at one of the most popular and frequently used legal entities, LLC.
Asset Protection
The single greatest benefit of using an LLC is asset protection. Basically, operating under an LLC protects the owner or owner’s personal assets from business-related debts and liabilities. If your business goes under and you have outstanding debt, creditors can not pursue your personal assets (e.g. savings account, house, car, etc.) for repayment. This is in stark contrast to operating as a proprietorship, which offers zero protection of personal assets.
Pass-Through Taxes
Another advantage of operating as a LLC is the simple fact that taxes are paid on an individual level, not a business level. Income is passed through to the LLC’s owners, with the respective owner reporting it on his or her tax returns. It’s a simple format for handling income and expenses, eliminating many of the otherwise confusing nuances of Corporation tax filings.
Credibility
Of course, there’s also the benefit of added credibility and trust associated with LLCs. Ask yourself, which business would you trust more: a business that operates under the owner’s real name, or a business that operates under a branded LLC name? If you chose the latter, you aren’t alone. Most consumers trust LLCs over sole proprietorships, making this the preferred legal entity of the two.
Minimal Restrictions
When compared to S-Corps and C-Corps, LLCs have minimal restrictions on the owners. This means you can spend more time running and growing your business, and less time worrying about the nuances of taxing and accounting.
These are just a few of the most noteworthy benefits associated with LLCs. It’s important to note, however, that there are also some disadvantages associated with this legal structure, such as the increased difficulty of transferring ownership. If you want to sell your LLC, you’ll have to jump through some additional hoops to do so. This doesn’t necessarily mean that you can’t sell it, rather it’s more difficult to sell when compared to a business operated as a sole proprietorship.
How to Customize Sales Invoices in Quickbooks
Does your business use invoices in its day-to-day operations? It’s not uncommon for contractors and service providers to send customers an itemized bill known as an invoice. Upon receiving this bill, the customer can look it over for a description of the purchased products or services and their respective prices. While Quickbooks has a generic template invoice that’s used by default, you can actually customize your invoice in just a few easy steps.
To customize your sales invoice, go ahead and launch the Quickbooks accounting software and choose Customers > Create Invoices. From this menu, click the Print Preview button for a first-hand look at how your current (default) sales invoice looks as an email attachment. It’s always a good idea to view your sales invoice so you’ll know what customers are seeing. Quickbooks’ default sales invoice is optimized, but if you change it, some of these elements may be broken. To exit the preview screen, click the Close button.
Assuming you want to change your sales invoice from the default design, click the Customize option from the drop-down menu followed by Manage Templates. Next, click the thumbnails in the Template Gallery to see how it appears as an invoice. Quickbooks comes with several different pre-made templates from which users can choose. Best of all, you can further customize these pre-made invoice templates according to your own preferences. Once you’ve found a template that you wish to use, click to open it. From here, go through the options menu to customize the invoice. Quickbooks allows users to customize nearly every element of their invoice, including the company logo, company name, font size and color, contact information, invoice title, adding or removing fields, disclaimers, notes and more.
After customizing your sales invoice, click the Print Preview button one last time to see how it looks from a customer’s perspective. If it looks good and contains all of your preferred formatting options and settings, click OK to save the invoice. Congratulations, you’ve just customized your sales invoice in Quickbooks! Sorry if you were expecting more, but that’s all it takes!
You might be wondering how to set this newly created template as the default template in Quickbooks. Well, Quickbooks automatically uses the last saved invoice as the default template for the next invoice. Therefore, you don’t have to perform any additional steps. As long as it was the last saved invoice, it will automatically become your new default invoice.
Did this tutorial work for you? Let us know in the comments section below!
How to Raise Capital for Your Small Business
Looking to start your own business? If so, you’ll need to acquire capital to fund your new venture. Regardless of the industry, all businesses need capital to survive. So, how can you raise capital for your small business?
Bank Loans
Many banks and similar financial institutions offer small business loans specifically for entrepreneurs such as yourself. It’s a safe and effective way to acquire capital for a startup. However, the downside to bank-issued small business loans is the simple fact that you generally need credit, and good credit, to obtain them.
Crowdfunding
The advent of the Internet has paved the way to an innovative new way for entrepreneurs to raise capital: crowdfunding. Crowdfunding sites like KickStart and GoFundMe allow entrepreneurs to seek capital from a large pool of users (investors). Unlike traditional methods of raising capital, the entrepreneur typically does not have to forfeit equity of his or her business in exchange for investments. Instead, the entrepreneur may offer other perks, such as free products, special “premium” versions of the product, credit, etc.
Personal Credit Cards
Of course, you can always use your personal credit cards to fund your small business. Although easy and effective, it’s not exactly the best approach. Personal credit cards typically come with steep interest rates and hidden fees. So if you’re thinking about using them to fund your business, check the terms beforehand so you know exactly how much it will cost throughout the duration of the repayment.
Friends and Family
Another idea is to seek capital from friends and family. Being that they know you, they’ll likely feel more inclined to loan you money — even if you have a less-than-stellar credit history. And if a friend or family member needs enticing, offer to create a written contract that details the way in which you’ll pay him or her back. Seeing the terms in writing will boost confidence, making it easier to acquire investment capital.
Angel Investors
Last but not least, angel investors offer yet another way for entrepreneurs to raise capital for their small business. Angles differ from independent investors in the sense that they offer both capital and expertise, usually in exchange for an equity share in the business. If you find the “right” angel, however, you’ll have an invaluable lifeline to help your business grow and succeed. After all, it’s in the angel’s best interest for you to succeed, so it only makes sense for them to help.
The Scoop on Quickbooks Class Tracking
There’s a reason why Quickbooks is the leading choice of accounting software for small-to-mid-sized businesses: it offers a plethora of features and customization options to fit every user’s needs. Among these features is a special tracking system known as “classes,” which we’re going to discuss in today’s blog post.
What are Class Tracking?
Class tracking is a feature in the Quickbooks accounting software that allows users to group items, transactions and other elements according to their reporting needs. Basically, you are “classifying” transactions and items so you can find them more easily in the future. It’s a simple yet highly useful feature that really improves the functionality of Quickbooks, especially for businesses handling lots of transactions and items.
How to Enable Class Tracking
First and foremost, you’ll need to enable class tracking in Quickbooks. This is done by logging into your Quickbooks account and choosing Edit > Preferences > Accounting > Company Preferences > at which point you can tick the “Use class tracking” box to enable this feature. You’ll only have to enable class tracking once, as Quickbooks will automatically remember these settings the next time you log in to your account.
How to Create a Class
Once you’ve enabled class tracking, you’ll want to create a new class to track. This is done by accessing Lists > Class List > create new class (or Ctrl+N). This will bring up a new window with several fields pertaining to the new class. Go ahead and enter a name for your new class and either click “Next” to add another class or “OK” to save the changes and close the window.
How to Use Class Tracking
Class tracking is actually easier to use than most people realize. When creating transactions, the transaction window will reveal a special field dedicated for class tracking. Simply click the drop-down arrow in this field and choose the appropriate class. If the class you wish to use is not listed here, you’ll need to go back and create it using the steps mentioned above. Keep in mind that invoices also have a field for class tracking. Found next to the “Customer:Job field,” it allows users to track invoices based on their preferred system.
Hopefully, this will give you a better understanding of Quickbooks class tracking and how it works. Remember, classes provide almost limitless freedom regarding tracking. You can create a class for just about anything, using it to track your transactions and items in the Quickbooks accounting software.
Mistakes to Avoid When Choosing Accounting Software
Not surprisingly, poor accounting and bookkepping is one of the most common reasons why small businesses fail. When a business owner is busy performing the countless number of tasks that go into his or her day-to-day operations, they may overlook the importance of keeping good financial records. It’s not until tax time rolls around the following April when they realize just how important keeping records really is.
Thankfully, you can facilitate the otherwise difficult and tedious task of keeping financial records by choosing the right accounting software. But not all accounting software is the same. To ensure you choose the right type, you’ll want to avoid making the following mistakes.
No Automated Backups
As the saying goes, “hope for the best but prepare for the worst” holds true when speaking of small business accounting. Hopefully, nothing will happen to your financial records, but if disaster strikes you’ll need a backup copy on hand to restore the lost data. This is why it’s a good idea to choose accounting software with an automated backup feature. Granted, you can always create manual backups of your financial transactions and data, but opting for an automated backup feature will save you time and energy.
Infrequent Updates
How frequently is the accounting software updated? One of the great things about Quickbooks is the fact that it’s updated on a regular basis, with developers patching bugs while implementing new features. Accounting software that’s updated less frequently is more prone to bugs and errors, as well as security vulnerabilities. And given the fact that accounting software contains sensitive financial data like bank accounts and customer invoices, you’ll want to ensure it’s protected from such vulnerabilities.
Lack of Security
If there’s one element that shouldn’t be overlooked when choosing accounting software for a small business, it’s security. Hacking and other cyber attacks have become all too common in today’s world, with nearly half of all businesses reporting some type of security breach within the past year. Good accounting software, however, should come with several built-in safeguards to protect your data from unauthorized use or access.
Poor Customization
What kind of customization options does the accounting software offer? Quickbooks, for instance, allows its users to customize nearly every form, including invoices. So instead of sending a generic invoice, you can send customers and clients a fully customized invoice containing your company’s name, logo and other brandable elements.
Top 5 Benefits of Choosing Quickbooks
As a small business owner, you are probably well aware of the importance of keeping good financial records. From receipts and invoices to income statements and paystubs, maintaining good records is essential when running any type of business. Thankfully, the right accounting software can make this process a breeze, simplifying and facilitating the otherwise tedious and time-consuming task of accounting. So, what makes Quickbooks the preferred choice among seasoned small business owners? Check out some of the benefits it offers listed below.
Backed by Intuit
With Quickbooks, you can rest assured knowing that it’s backed by one of the most trusted and reputable companies in the world. Intuit has been a leading player in the tax/accounting market for more than a decade now, and there’s no signs of this changing anytime soon. If you ever encounter a problem when using Quickbooks, you’ll have no problem finding a solution thanks to their unparalleled customer support.
Access Anywhere, Anytime
Assuming you choose either Quickbooks Online or Hosted Quickbooks, you’ll have the freedom to access your account from any Internet-connected computer or device. Whether you are working at the office, or if you are hundreds of miles away on vacation, you can access your Quickbooks account. The convenience of accessibility is just one of the many reasons why Quickbooks is the preferred choice of accounting software among small business owners.
Supports Excel Files
Have an excel file that you would like to import into Quickbooks? This is another task that Quickbooks is capable of performing. It’s cross-compatible with Excel, Word and other leading file types, meaning you don’t have to worry about manually entering each field into your account. Just import the file and Quickbooks does the rest.
Mobile Apps
Quickbooks also has some pretty convenient apps available for use. Using these apps, you can connect to your account and perform other accounting tasks like checking your balances and even sending invoices.
Secure
Cyber threats have become a serious problem for small business owners. If a hacker were to access and delete your data, would your business be able to stay afloat? The good news is that Quickbooks offers a highly secure platform on which to perform your small business accounting; thus, reducing the risk of a cyber attack.
Did we leave out any other benefits? Let us know in the comments section below!
What’s the Best Way to Pay Yourself as a Business Owner?
There are roughly 28 million small businesses operating in the United States, according to data from the Census Bureau. Running your own small business certainly has its perks, such as the ability to be your own boss, set your own hours, and control your financial destiny. But it can also prove challenging for newcomers who are unfamiliar with the laws regarding business operations. One such question that’s often raised by new business owners is how to yourself — something that we’re going to tackle in today’s blog post.
Unfortunately, paying yourself as a business owner isn’t as simple as transferring money from your business account to your personal bank account. If you are an officer of a corporation, for instance, federal law states that you must receive checks like a regular employee, complete with withholdings for Social Security, Medicare, federal taxes and state taxes.
Owners of an S-Corp business must also receive paychecks with withholdings for Social Security, Medicare, federal taxes and state taxes. However, one of the key differences is that S-Corp business owners are allowed to draw additional money beyond their standard paychecks. This is done in as a draw or distribution, and checks written for them are not subject to the same withholdings as standard paychecks.
Of course, sole proprietors are given the freedom to pay themselves without the normal constraints of withholdings. Since there’s no corporate entity in a sole proprietorship, all revenue is acquired in the business’s owners personal account. This eliminates the otherwise confusing process of having to write a paycheck with the respective withholdings. Sole proprietors can simply use their earned money just like any regular money they have.
The downside to running a business as a sole proprietor, however, is that it doesn’t offer any type of liability protection. Unlike corporations, the owner of a sole proprietorship has no protection for his or her personal assets. In other words, if a disgruntled customer sues you, they could potentially take your personal assets, assuming the court sides in their favor. This is why many experienced business owners operate under a corporation or limited liability company (LLC), both of which offer liability protection.
Hopefully, this will give you a better understanding of the ways in which small business owners can pay themselves. The bottom line is that you need to understand your business entity type, at which point you can choose the best way to pay yourself.