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Tax Tips for Gig Economy Entrepreneurs and Workers

1/23/2023

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In recent years, the gig economy has changed how people do business and provide services. Taxpayers must report their gig economy earnings on a tax return – whether they earned that money through a part-time, temporary or side gig. The IRS’ Gig Economy Tax Center provides information and resources to help this group of entrepreneurs and workers understand and meet their federal tax obligations.
Here are key things for individuals involved in the gig economy to remember as they get ready to file in 2023.

Gig economy income is taxable
  • Taxpayers must report all income on their tax return unless excluded by law, whether they receive an information return such as a 1099 or not.
  • Individuals involved in the gig economy may also be required to make quarterly estimated tax payments to pay income tax and self-employment tax, which includes Social Security and Medicare taxes. The last estimated tax payment for 2022 is due Jan. 17, 2023.
Workers report income according to their worker classification
Gig economy workers who perform services, such as driving a car for booked rides, running errands and other on demand work, must be correctly classified. Classification helps the taxpayer determine how to properly report their income.
  • If they are employees, they report their wages from the Form W-2, Wage and Tax Statement.
  • If they are an independent contractor, they report their income on a Schedule C, Form 1040, Profit or Loss from Business - Sole Proprietorship.

The business or the platform determines whether the individual providing the services is an employee or independent contractor. The business owners can use the worker classification page on IRS.gov for guidance on properly classifying employees and independent contractors.

Expenses related to gig economy income may be deductible

Individuals involved in the gig economy may be able to deduct expenses related to their gig income, depending on tax limits and rules.
  • Taxpayers may be able to lower the amount of tax they owe by deducting certain expenses.
  • It is important for taxpayers to keep records of their business expenses.

Pay the right amount of taxes throughout the year

An employer typically withholds income taxes from their employees' pay to help cover taxes their employees owe.
Individuals involved in the gig economy have two ways to cover their taxes due:
  • If they have another job where they are considered an employee, they can submit a new Form W-4, Employee's Withholding Certificate to their employer to have more taxes withheld from their paycheck to cover the tax owed from their gig economy activity.
  • They can make quarterly estimated tax payments throughout the year.

More information:
Publication 525 Taxable and Nontaxable Income
Publication 1779, Independent Contractor or Employee

​Share this tip on social media -- #IRSTaxTip: Tax tips for gig economy entrepreneurs and workers. http://ow.ly/TZ4T50MnUmE
​
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New Laws for Illinois in 2023

1/9/2023

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Nearly 200 New Laws for Illinois in 2023
I want to thank LaVelle Law for a very comprehensive email about this! They are a business Law firm in Schaumburg. www.lavellelaw.com/

They’ve prepared a summary of some of the new Illinois laws that may impact your life.

See a complete list here:
 https://www.illinoissenatedemocrats.com/images/PDFS/2022/bills-taking-effect-2023.pdf​

STUDENT CONFIDENTIAL REPORTING ACT (SB 03936/PA 102-752) Legislation requiring state agencies, such as schools and the Illinois State Police, to establish a hotline for receiving reports and other information regarding the potential harm or self-harm of students or school employees.
 
CROWN ACT (SB 03616/PA 93-1078) Legislation amends the definition of “race” under the Illinois Human Rights Act to include traits historically associated with race, including, but not limited to, hair texture and protective hairstyles. The goal of this law is to prevent hair discrimination in the workplace.
 
LIFTING UP ILLINOIS WORKING FAMILIES ACT (SB 0001/PA 101-0001) Legislation amends the Illinois Minimum Wage Law to raise the minimum wage in the State of Illinois to $15 by 2025. In 2023, the minimum wage in Illinois will increase from $12 to $13 an hour.
 
FAMILY BEREAVEMENT LEAVE ACT (SB 03120/PA 102-1050) Legislation amends the Illinois Family Bereavement Leave Act to provide up to two weeks, or 10 working days, of unpaid leave for women who have a miscarriage or other diagnosis or event that impacts pregnancy or fertility, including failed adoptions or surrogacy agreements and unsuccessful reproductive procedures. The amendment also expands the definition of “family member” under the Act to include spouses, domestic partners, siblings, grandparents, and stepparents.
 
ILLINOIS VEHICLE CODE
(SB 03216) Amends the Illinois Vehicle Code to include licensed physical therapists on the list of persons who can “verify that a person is a person with disabilities.”
 
(SB 03609) Lowers vehicle registration fees for cars and small trucks if they were manufactured in Illinois.
 
SCHOOL CODE EXPANSION
(HB 05193/PA 86-1475) Legislation amends the Illinois School Code to require “safe gun storage” to be included on the list of required topics in the state’s safety education curriculum for all grades.
 
(HB 05488/PA 102-0981) Legislation amends the Illinois School Code to allow every student enrolled in a public middle or high school at least one excused school day absence per year to engage in a “civic event.” A “civic event” is an event “sponsored by a non-profit…or government entity that is open to the public.”
 
ILLINOIS STATE EMPLOYEES GROUP INSURANCE ACT
(HB 04271/PA 102-0731) Requires state-regulated private insurance to cover medically necessary breast reduction surgery.
 
(HB 05254/PA 102-0804) Requires health insurance plans to cover medically necessary hormone therapy treatments for women who have induced menopause by undergoing a hysterectomy.
 
(HB 05318/PA 102-1073) Requires health insurance to cover annual prostate cancer screenings upon a physician’s recommendation.
 
(HB 05334/PA 102-0979) Requires health insurance to cover costs for genetic testing for the BRCA1 and BRCA2 genes to detect risks for breast and ovarian cancer upon a physician’s recommendation.
 
JOB TRAINING ASSISTANCE AND SUPPORT SERVICES PILOT PROGRAM ACT (HB 05225/PA 102-0803) Legislation created a five-year pilot program that offers assistance and support services, such as childcare or transportation subsidies, to eligible individuals to allow them to complete an apprenticeship or internship.
 
THE COMPREHENSIVE HEALTH EDUCATION PROGRAM (SB 04028) Legislation requires Illinois schools to provide information on where and how students can access mental health care services.
 
ILLINOIS CAREER/TECH PATHWAY (HB 03296) Legislation requires school boards to establish a career and technical education pathway program for grades 6 through 12.
 
ILLINOIS DUAL CREDIT COURSES (HB 05506) Legislation allows partnership agreements between Community College districts and High School districts to allow high school students to take a dual credit course for high school credit and collect demographic data.
 
RED LIGHT CAMERA/SPEED CAMERA CHANGES FOR STOLEN VEHICLES (HB 03772) Modifies existing vehicle laws by providing that people whose cars have been stolen will no longer be liable for violations, fees, fines, or penalties when caught on red light and speed cameras.
 
ILLINOIS HEALTH AND WELLNESS OF STATE RESIDENTS (SB 02535) Legislation requires that before a pharmacist dispenses an opioid, they must inform the patient that opioids are addictive and offer to give them an opioid antagonist.
 
WORKER’S RIGHTS AMENDMENT TO THE ILLINOIS BILL OF RIGHTS (SJRCA0011) Amendment to the Bill of Rights of the Illinois Constitution that makes the “right to organize and to bargain collectively through representatives of their own choosing for the purposes of negotiating wages, hours and working conditions” a fundamental right for Illinois workers.
 
LATEX GLOVE BAN ACT (HB 0209/PA 102-1095) Legislation bans latex gloves in the handling and preparation of food. The Act will also ban the use of latex gloves by medical personnel starting Jan. 1, 2024.
 
ILLINOIS POWER OF ATTORNEY ACT (HB 05047/PA 102-0794) Legislation amends the Illinois Power of Attorney Act to permit agents in a health care setting to present electronic copies of documents that delegate power of attorney and requires the health care provider to accept the digital document.
 
MOTOR FUEL TAX (PA 101-0032) Effective January 1, 2023, the State Motor Fuel Tax will increase to $0.423 per gallon of gasoline. Additionally, the tax will resume its annual increase on July 1, 2023.
 
GROCERY TAX (PA 102-700) Effective January 1, 2023, the 1% tax on groceries will be reinstated after it was suspended from July 1, 2022, through June 30, 2023.
 
BANKING DEVELOPMENT DISTRICT ACT (HB 05194/PA 102-802) Establishes an incentive program to induce banks and credit unions to open branches in areas with underbanked populations.
 
HUMAN RIGHTS ACT (HB 02775/PA 102-896) Legislation amends the Illinois Human Rights Act by making it a civil rights violation for anyone in real estate transactions to discriminate based on source of income. Financial institutions are exempt if they are considering source of income in transactions in compliance with state or federal law.
 
CONDOMINIUM PROPERTY ACT (HB 05246/PA 102-976) Legislation amends the Condominium Property Act by narrowing the timeframe for section 22.1 disclosures for prospective purchasers from 30 days to 10 days. The amendment also limits the fee for gathering such information to $375, with an additional $100 charge permitted for rush service completed within 72 hours.
 
REAL ESTATE VALUATION TASK FORCE ACT (HB 04410/PA 102-934) Legislation creates the Real Estate Valuation Task Force to identify and resolve the causes of racial disparities in appraisals.
 
PROPERTY TAX CODE (SB 03069/PA 102-1000) Legislation amends the Property Tax Code to provide that a homeowner or condominium association may file an appeal or intervene in an appeal on behalf of its members to the Property Tax Appeal Board. 

Complete List of New Illinois Laws in 2023
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Good recordkeeping is just good business

12/12/2022

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Recordkeeping is an important part of running a small business. In fact, keeping good records helps business owners make sure their business stays successful.
Here are some things small business owners should remember about recordkeeping:
  • Good records will help business owners:
    • Monitor the progress of their business
    • Prepare financial statements
    • Identify income sources
    • Keep track of expenses
    • Prepare tax returns and support items reported on tax returns
  • Small business owners may choose any recordkeeping system that fits their business. They should choose one that clearly shows income and expenses. Except in a few cases, the law does not require special kinds of records.
  • How long an owner should keep a document depends on several factors. These factors include the action, expense and event recorded in the document. The IRS generally suggests taxpayers keep records for three years.
  • A good recordkeeping system includes a summary of all business transactions. Businesses usually record these transactions in books called journals and ledgers, which business owners can buy at an office supply store, or keep them electronically. All requirements that apply to hard copy books and records also apply to electronic business records.
  • The responsibility to validate information on tax returns is known as the burden of proof. Small business owners must be able to prove expenses to deduct them.
  • Business owners should keep all records of employment taxes for at least four years.
  • Businesses that keep paper records should keep them in a secure location, preferably under lock and key, such as a desk drawer or a safe. 
  • Businesses that keep records electronically on a computer should always have an electronic back-up, in case the hard drive crashes.
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The Importance of Involving your CPA in Your Business

12/5/2022

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The Daily Herald had an article in Sunday’s Newspaper about the importance of an Accountant or CPA in advising your business. You can imagine that we at GLM agree with this this. Having an outside look at your business and finances is very important to the growth and stability of your business.

About the Author:
Denice Gierach is an attorney, CPA, Northwestern University business master's graduate, and has owned several businesses including in real estate and manufacturing. She is the lead attorney at Gierach Law Firm in the Chicago area. With more than 30 years of experience, she has been a respected and sought-after resource for businesses looking to grow, sell, solve problems, and succeed long term.
Her insights across business areas gives a fuller lens to business issues and solutions, and helps businesses grow and succeed with less time spent on legal issues and other time-consuming problems
 
Here is a link to the Article:
​ https://www.dailyherald.com/business/20221204/the-importance-of-involving-your-cpa-in-your-business
​
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Giving Tuesday is Tomorrow!

11/28/2022

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The Tuesday after Thanksgiving marks Giving Tuesday when many people choose to make charitable donations. People making charitable donations for Giving Tuesday, or at any time during the year, should review whether their gift is tax-deductible.

Donations to charities may be deductible
Most contributions of cash or property made to a charitable organization are deductible as an itemized deduction on Schedule A, Form 1040, Itemized Deductions. Cash contributions include those made by check, credit card or debit card, as well as unreimbursed out-of-pocket expenses in connection with volunteer services to a qualifying charitable organization. Donations of property other than cash are generally deductible at their fair market value.

There are some contributions that aren’t tax deductible, including donations:
  • Made to a supporting organization
  • Intended to help establish or maintain a donor advised fund
  • Carried forward from prior years
  • Made to most private foundations
  • Made to charitable remainder trusts
  • Of time spent volunteering

Some things to do when a taxpayer is considering making charitable gifts include:
  • Use the Interactive Tax Assistant to help determine if a charitable contribution is deductible.
  • Get a written acknowledgement for any charitable contributions of $250 or more.
  • Research charities they are considering donating to carefully.

Tax Exempt Organization Search tool

As people are deciding where to make their donations, the IRS has a tool that may help. Tax Exempt Organization Search on IRS.gov is a tool that allows users to search for charities. TEOS provides information about an organization's federal tax status and filings.

Things to know about the TEOS tool:
  • Donors can use it to confirm an organization is tax-exempt and eligible to receive tax-deductible charitable contributions.
  • Users can find out if an organization had its tax-exempt status revoked.
  • TEOS does not list certain organizations that may be eligible to receive tax-deductible donations, including churches, organizations in a group ruling and governmental entities.
  • TEOS lists organizations under the legal name or a "doing business as" name on file with the IRS. No separate listing of common or popular names is searchable.

​Qualified charitable distributions

Taxpayers age 70 ½ or older can make a qualified charitable distribution directly from their IRA, other than a SEP or SIMPLE IRA, to a qualified charitable organization. The maximum annual amount a taxpayer may exclude from income for a QCD is $100,000. A QCD may also count toward the taxpayer’s required minimum distribution for the year. Taxpayers should review Publication 590-B, Distributions from Individual Retirement Arrangements, for more information.
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Year End Tax Tips

11/14/2022

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The end of the calendar year is an important time for businesses of all sizes. It's when businesses need to start organizing the year's financial information for tax season. Though the filing deadline may be months away, your company should be thinking about ways to make that period as easy as possible.
What should small business owners be doing right now to prepare for tax season.

Automate your tax prep
In today's world, there are countless programs, apps and services available to help make tax time less of a burden. Using QuickBooks in your business to track your sales, expenses and other financial information helps to make the tax preparation process more streamlined. The way taxes should be dealt with is to automate the process. The earlier you proceed towards automation, the less time needed to work in tax season, which means more time remaining to focus on your business.

​Review your business expenses
As every business owner knows, tax season means taking stock of the company's income, expenses and deductions. To get ahead of this task, business owners should do this throughout the year, thus ensuring a smooth ride when it comes time to file taxes.
The biggest part of preparing for taxes is what should already have been done which is keeping track of all business expenses throughout the year. If everything has been entered into your accounting system in a timely fashion, then the hardest part is done. If not, you need to set aside some time to gather and enter everything correctly."
Implementing a good filing system, is key to making sure you can easily locate and organize all your business expenses. Again, accounting software like QuickBooks Online is affordable option for small businesses looking to sync and track bank account activity, expenses and invoices.

Learn which tax law changes will affect you
Tax laws are constantly changing, and it's wise to stay alert and up-to-date on changes that could affect your business. Business owners need to recognize that new reporting requirements, I'll need to make sure you're meeting those requirements.
If you're unsure of what any tax law updates could mean for your business, be sure to consult your accountant.

Best practices for tax time
Understand your deductions and requirements. Consult with a tax preparer before the end of the year will help them clean things up, take better advantage of available deductions, and hopefully costs. For example, many owners may not be aware that the tax code only allows a 50 percent deduction for meals and entertainment. However, there is an allowed deduction of 100 percent for specific meals, like holiday parties, or when an employer provides a meal for employees at work, for the employer's convenience. Knowing how to track these items during the year will ensure the best possible deduction.

Think about how future plans will affect next year's numbers. Are you going to be selling your business next year? Speak with your accountant about the reporting method you use — cash basis or accrual basis. The method will impact your P&L [profits and losses]. When a buyer is looking at your business, less profit can influence whether they will buy.

Save up for tax-day liability costs. With no cash to cover the tax liability, the consequence is usually additional fines and penalties that would not have been accrued with proper planning and focus. Our recommendation is to create a separate bank account. As money comes in, set it aside into that account ... and when Tax Day comes, you have the cash on hand to cover your liability.

​Know when to outsource. Many small businesses are successful due to their do-it-yourself approach to solving problems. Taxes are sometimes best left to the professionals. By hiring a professional, you ensure that they're done correctly, and free yourself up to continuing managing your primary business needs.
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Taxpayer Bill of Rights

11/7/2022

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All taxpayers should familiarize themselves with the Taxpayer Bill of Rights

By law, all taxpayers have fundamental rights when they’re interacting with the IRS. It’s important that all taxpayers know and understand their rights. The Taxpayer Bill of Rights presents these rights in 10 categories.

Here’s an overview of these rights. For full official details about each right, click the links below.
  • The right to be informed Taxpayers have the right to know what they need to do to comply with the tax laws.
  • The right to quality service Taxpayers have the right to receive prompt, courteous and professional assistance when working with the IRS and the freedom to speak to a supervisor about inadequate service.
  • The right to pay no more than the correct amount of tax Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.
  • The right to challenge the IRS’s position and be heard Taxpayers have the right to object to formal IRS actions or proposed actions and provide justification with additional documentation.
  • The right to appeal an IRS decision in an independent forum Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including certain penalties.
  • The right to finality Taxpayers have the right to know the maximum amount of time they have to challenge an IRS position and the maximum amount of time the IRS must audit a particular tax year or collect a tax debt.
  • The right to privacy Taxpayers have the right to expect that any IRS inquiry, examination or enforcement action will comply with the law and be no more intrusive than necessary.
  • The right to confidentiality Taxpayers have the right to expect that their tax information will remain confidential.
  • The right to retain representation Taxpayers have the right to retain an authorized representative of their choice to represent them in their interactions with the IRS.
  • The right to a fair and just tax system Taxpayers have the right to expect fairness from the tax system. This includes considering all facts and circumstances that might affect their liabilities, ability to pay or provide information timely.
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Reporting Nonemployee Compensation & Backup Withholding

10/17/2022

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When a business hires an independent contractor, the employer is generally not responsible for withholding income taxes, Social Security, or Medicare taxes from their compensation. However, by law, business taxpayers who pay nonemployee compensation of $600 or more must report these payments to the IRS. They do this using Form 1099-NEC, Nonemployee Compensation.

Generally, payers must file Form 1099-NEC by January 31. There is no automatic 30-day extension to file Form 1099-NEC. However, an extension to file may be available under certain hardship conditions.
Nonemployee compensation reportable on Form 1099-NEC is subject to backup withholding if a payee has not provided a Taxpayer Identification Number to the payer or the IRS notifies the payer that the payee provided a TIN that does not match their name in IRS records.

A TIN can be one of the following numbers:
  • Social Security
  • Employer identification
  • Individual taxpayer identification
  • Adoption taxpayer identification

​What is backup withholding?
Backup withholding can apply to most kinds of payments reported on Forms 1099 and W-2G. The person or business paying the taxpayer doesn't generally withhold taxes from certain payments; however, there are situations when the payer is required to withhold a certain percentage of tax to make sure the IRS receives the tax due on this income. The payer's requirement to withhold taxes from payments not otherwise subject to withholding is known as backup withholding. The current backup withholding tax rate is 24%.

Fast facts to helps taxpayers understand backup withholding

Under the tax law, payers responsible for knowing who they are paying. To accomplish this, payers are required to collect the legal name and taxpayer identification number, or TIN, from vendors they pay. Generally, backup withholding is required when a service vendor does not provide the payer their TIN timely or accurately. This type of withholding can apply to most payments reported on certain Forms 1099 and W-2G.

Here’s what taxpayers need to know about backup withholding.
Backup withholding is required on certain non-payroll amounts when certain conditions apply.
The payer making such payments to the payee doesn't generally withhold taxes, and the payees report and pay taxes on this income when they file their federal tax returns. There are, however, situations when the payer is required to withhold a certain percentage of tax to make sure the IRS receives the tax due on this income.

Backup withholding is set at a specific percentage.
The current rate is 24 percent.

Payments subject to backup withholding include:
  • Interest payments
  • Dividends
  • Payment card and third-party network transactions
  • Patronage dividends, but only if at least half the payment is in money
  • Rents, profits, or other gains
  • Commissions, fees, or other payments for work done as an independent contractor
  • Payments by brokers
  • Barter exchanges
  • Payments by fishing boat operators, but only the part that is paid in actual money and that represents a share of the proceeds of the catch
  • Royalty payments
  • Gambling winnings, if not subject to gambling withholding
  • Taxable grants
  • Agriculture payments

Examples when the payer must deduct backup withholding
:
  • If a payee has not provided the payer a Taxpayer Identification Number.
    • A TIN specifically identifies the payee.
    • TINs include Social Security numbers, Employer Identification Numbers, Individual Taxpayer Identification Numbers and Adoption Taxpayer Identification Numbers.
  • If the IRS notified the payer that the payee provided an incorrect TIN; that is the TIN does not match the name in IRS records. Payees should make sure that the payer has their correct name and TIN to avoid backup withholding
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Aspiring Entrepreneurs: The Basics of Setting up a Business

9/19/2022

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​New entrepreneurs can start out on the right foot by making sure they understand the tax responsibilities of running a business. The process can seem daunting, but IRS.gov has resources to help new business owners.

Here are a few things new entrepreneurs need to do when starting their business.

Choose a business structure
The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are:
  • Sole proprietorship: An unincorporated business owned by an individual. There's no distinction between the taxpayer and their business.
  • Partnership: An unincorporated business with ownership shared between two or more people.
  • Corporation: Also known as a C corporation. It's a separate entity owned by shareholders.
  • S Corporation: A corporation that elects to pass corporate income, losses, deductions and credits through to the shareholders.
  • Limited Liability Company: A business structure allowed by state statute.

Choose a tax year

A tax year is an annual accounting period for keeping records and reporting income and expenses. A new business owner must choose either:
  • Calendar year: 12 consecutive months beginning January 1 and ending December 31.
  • Fiscal year: 12 consecutive months ending on the last day of any month except December.



Apply for an employer identification number

An EIN is also called a federal tax identification number. It's used to identify a business. Most businesses need one of these numbers. It's important for a business with an EIN to keep the business mailing address, location and responsible party up to date. IRS regulations require EIN holders to report changes in the responsible party within 60 days. They do this by completing Form 8822-B, Change of Address or Responsible Party and mailing it to the address on the form.

Have all employees complete these forms
  • Form I-9, Employment Eligibility Verification U.S. Citizenship and Immigration Services
  • Form W-4 Employee's Withholding Allowance Certificate

Pay business taxes
The form of business determines what taxes must be paid and how to pay them.

Visit state's website
Prospective business owners should visit their state's website for info about state requirements.
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QuickBooks as your Most Important Business Tool (Pt. 2)

9/12/2022

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Many of the accounting entries are done behind the scenes in QuickBooks just by carrying out the day to day activities of your business. This week we cover 10- 20 great things about QuickBooks...

10. Keep Questions Organized - If you come across transactions that you are not sure how to handle don't let them stop you from reconciling and closing out your financials.  Use the QuickBooks ask my accountant code on your chart of accounts.  This will allow you to enter the transaction and reconcile all while keeping your questions organized in one spot. 

11. Journal Entries - Journal entries are sometimes necessary to fix issues or create year end entries per your CPA to match your tax return.  Although journal entries are getting more into the "accounting" end of things you should still be familiar with them. 

12. Accept Online Payments - You can turn on the Intuit payment network services which allows customers to pay your invoices easily online.  The best part is it only costs you $0.50 per transaction with no percentage of the invoice being charged as a fee.  So you could send a $50,000 invoice and only pay $0.50 to get that money sent directly to your checking account.  Hard to beat that price given the typical merchant processing fees.

13. Email Invoices and Statements - You should set up all invoices and statements to be emailed directly from QuickBooks.  This will help reduce the amount of time it takes for your customers to pay you, which will increase cash flow.  You can turn on the online payments as discussed in #12 above to help you get paid even faster.  

14. Payroll Management - You can process your payroll directly in QuickBooks or use an outsourced payroll service.  We typically recommend outsourcing your payroll to reduce your liability.  When you use an outsourced payroll it is important to record your outsourced payroll correctly in QuickBooks.  Many payroll companies even offer files that can import your outsourced payroll data into QuickBooks. 
 
15. QuickBooks Class Tracking - QuickBooks class tracking is one of the more powerful functions of the software that often is not utilized.  QuickBooks classes are a way to track your data in a way that is meaningful to your business.  Examples of QuickBooks classes are locations or departments.  I use QuickBooks classes to track sources of income so that I know the source of every penny that our business has ever made.    

16. Financial Reporting - One big mistake I see is small businesses not taking advantage of the reporting that is available in QuickBooks.  Small business financial reporting is a crucial piece of the bookkeeping process.  Without running and analyzing financial reports your bookkeeping system is not performing to its full capability. 

17. Owner Memorized Reports - I develop a custom set of reports for myself to run our business.  We also work with our clients to develop a set of reports that the owner finds particularly useful to run their business.  While many reports are available in QuickBooks it is nice to organize them all in one spot for easy access.  Under Reports/Memorized Reports you can find your memorized report list.  You should create a new list called 'owner reports' and memorize important reports to that list to make them easily accessible.

18. Custom Importing - If your financial institution does not offer import capabilities into QuickBooks you still have some options.  You can use a CSV converter to QuickBooks to make your data importable into QuickBooks.  Additionally you can create Intuit Importable Files also known as IIF files which import into QuickBooks.  You may need to seek a developer or programmer that can create IIF files.   

19. Web Apps - There are a whole lot of apps that work with QuickBooks that may help your business.  It is worth browsing the apps to see how they can help your business.  Be sure to get an app that is approved and supported by Intuit.  One QuickBooks app that we recently started using is Time Tracker by eBillity.  This app allows our employees to track and enter their time from their computer, mobile phone or tablet.  The administrator can then approve the time, which can then be set up to sync with your QuickBooks file. 

20. QuickBooks as a Tool - Lastly, I want to talk about using QuickBooks as a tool to run your small business.  Many small business owners look at bookkeeping as a hassle or as a means to filing their taxes.  I think some small business owners simply don't like bookkeeping, others are intimidated by it and some don't see the value in it.  If your bookkeeping system and QuickBooks file are set up properly and tailored to your specific needs they can help you run your business.  Your QuickBooks file should be a tool that you can use to aid you in making key business decisions.

QuickBooks can be a valuable tool to help you run your small business.  If you look at your bookkeeping as a hassle then you have not been shown how to properly use your bookkeeping system to aid you in making business decisions.  
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    GLM's Blog

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    Tom Gosche

    Tom is the Business Development Manager for GLM. If you are interested in learning more about GLM's services, contact him:

    630-675-8971
    tomg@goglm.com
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GLM, Inc.
 
300 N. Martingale Rd., Suite 750
Schaumburg, IL 60173-2097
 
Phone: (847) 884-1781
Fax: (847) 884-1830
E-mail: info@glmfinancial.com
Website: www.goglm.com 

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