Pete Bornstein - BizPro Consulting - peteb@bizpropete.biz
Positioning
clients for
year-end
Workshop objectives:
 How to best prepare our clients for their tax preparer
 How do we get QuickBooks “tax ready”?
 User Preferences and Company Information
 Clean up the QuickBooks database
 Becoming GAAP compliant
 Make financial reports more professional and readable
Pete Bornstein - BizPro Consulting - peteb@bizpropete.biz
Positioning
clients for
year-end
Basic infrastructure
 Correct tax form in Company Information
 Review User Preferences
 Cash vs. Accrual agrees with tax form
 Is Company Information correct?
 Tax Form, FEIN, Legal Name
 Clean up chart of accounts
 Inactivate or merge unused accounts
 Account numbers, if used, should be categorized and progressive
 Use mixed case and meaningful “descriptions”
 Do NOT use list names in Account descriptions
 Map each account to a tax line
 Produce preliminary “tax” reports and review them:
 Determine how the client’s tax preparer receives data
 Does the preparer work directly from an Accountant's Copy of the company file?
 Does the preparer ask for a copy of your QuickBooks company file, but send manual
journal entries back ?
 Does the preparer want only financial reports? If so, make sure the basis is correct.
Pete Bornstein - BizPro Consulting - peteb@bizpropete.biz
Positioning
clients for
year-end
Clean up the company file(s)
 Verify data. Rebuild if necessary.
 Clean up company data. Consolidate “old” transactions into
journal entries.
 Is it time to consolidate several company files into one?
 Irvin Data Transfer Utility
 Irvin Check Utility for Payroll checks and for Sales Tax Liability payments
 Or… do you simply need to combine reports from multiple
companies:
Pete Bornstein - BizPro Consulting peteb@bizpropete.biz
Positioning
clients for
year-end
Tools for company file cleanup
QuickBooks Client Data
Review
___________________
AuditMy Books
http://www.auditmybooks.com/
AuditMyBooks Analyzer is a
subscription software service that
automatically double checks small
business accounting records for
problems. It is designed to work
with QuickBooks, and is available
in the Intuit App Center.
Scan, Verify and Tune
Pete Bornstein - BizPro Consulting peteb@bizpropete.biz
Positioning
clients for
year-end
QuickBooks
Company File
Diagnostic Tool
Very useful if you
have tried Rebuild
and were not
successful, or if you
cannot open a
company file
Download by clicking on the link below:
The QuickBooks Company File Diagnostic Tool is designed
to help diagnose and repair damage within a QuickBooks
company file. The tool targets damage which may prevent a
company data file opening in QuickBooks.
Important: This tool is designed for US based versions of
QuickBooks only.
There are currently three primary results of running the
tool:
 Detection and repair of data damage that prevents the
file from opening
The symptom\error will be resolved and full QuickBooks
functionality restored.
 Detection of data damage that prevents the file from
opening
Restoring a backup prior to the symptom, or pursuing Data
Recovery services are the most common next steps when
the tool can detect, but not repair Data Damage within a
company file.
 No detection of data damage
Pete Bornstein - BizPro Consulting - peteb@bizpropete.biz
Positioning
clients for
year-end
Verify Tax Liabilities
 Is Sales Tax Liability correct?
 Is Payroll Tax Liability correct?
 Depends upon payroll service used by client
 Insure that client’s Chart of Accounts is mapped to payroll service’s Chart
of Accounts
 Verify “Payroll Liability Balances” report
 Are there other tax considerations?
 Multi-state tax districts
 Foreign tax liabilities
 Currency conversion considerations
Pete Bornstein - BizPro Consulting - peteb@bizpropete.biz
Positioning
clients for
year-end
Review 1099 Vendor Accounting
Step-by-step wizard in the Vendor drop-down box:
Issue W-9s and 1099s
Check for Name, Address, Tax Id, accurate coding of expenses as to
whether they are eligible for 1099 tracking.
Issue W-9s for miscreant vendors. What if they don’t respond?
Note that reporting requirements may increase drastically in 2012
unless the Health Care Reform rider is repealed.
Pete Bornstein - BizPro Consulting - peteb@bizpropete.biz
Positioning
clients for
year-end
Reconcile
 Bank accounts.
 Credit card accounts.
 Loan accounts. Are you using Loan Manager?
Reconcile everything!
 Clear Undeposited Funds
 Uncategorized Income
 Uncategorized Expenses
 Offset Debit or Credit accounts from bank downloads
 Clearing accounts used by Bill.com in sync?
 Owner Draws or Investments
 Personal expenses vs. business expenses
Pete Bornstein - BizPro Consulting - peteb@bizpropete.biz
Positioning
clients for
year-end
Clean up Inventory
 Physical Inventory and Inventory adjustments
 Inactivate or delete unused items
 Price or cost adjustments
Inventory Management
 Clean up Price Levels
Pete Bornstein - BizPro Consulting - peteb@bizpropete.biz
Positioning
clients for
year-end
Prepare year-end Payroll reports
Year-end reporting
file
 The client’s payroll processor may prepare these.
 The client’s accountant or CPA may prepare these.
 W-2, W-3, 940, 941, 1096, 1099
 Issue W-9s to 1099 vendors where SSN or FTID is not on
Prepare year-end Financial reports
 Profit and Loss
 Balance Sheet
 Cash Flow
 Profit & Loss Budget Performance
 Reports for the tax preparer:
 Income Tax Preparation
 Income Tax Summary
 Income Tax Detail
(if tax line mapping is complete)
Pete Bornstein - BizPro Consulting - peteb@bizpropete.biz
Positioning
clients for
year-end
Budgets
 Does your client currently have a budget?
 Does your client use their budget?
 Why have a budget?
Budget vs. Actual
 Compare budget vs. actual at the line item level
 Red-flag accounts that need attention
 Conform to a business plan
 Demonstrates effective financial oversight
 Useful for strategic planning
 Put your client’s budget versus actual financials “in
the clouds” with webKPI - www.webkpi.com
 A few Meetup members are webKPI partners
Pete Bornstein - BizPro Consulting - peteb@bizpropete.biz
Positioning
clients for
year-end
And some other stuff:
“Miscellaneous” Check List
 Adjust any prepaid items, such as insurance, that need to be
expensed.
 Journalize any other accruals for year end that won't be paid until
the following year.
 Calculate and record amortization, depreciation, and any other
necessary year-end adjusting journal entries.
 Review your asset and expense balances to ensure that all fixed
assets have been accurately recorded for any purchases or selling
of assets.
 Update any changes in employee or sales tax rates for the New
Year.
 Ensure any prepaid deposits received from clients throughout the
year are adjusted to earned revenue.
 Review and update the business plan to include changes
anticipated for the upcoming year as needed.
 Check to see if any local licensing or permits need to be filed with
year-end data.
 Review memorized transactions to ensure they are still applicable
for the New Year.
 And, finally:
Schedule a time to review the information with your client to see
if what you have done seems reasonable to them.
Review the year-end checklist in QuickBooks.
Pete Bornstein - BizPro Consulting - peteb@bizpropete.biz
Join the National Advisor Network
San Francisco Bay Chapter
 Share ideas
 Develop professionalism
 Learn how to better serve our clients
 Cross-refer QuickBooks-related products and specialized services
 Exchange technical information, tips and tricks
 Develop solutions to complex QuickBooks issues and scenarios
 Monthly meetings and occasional national webinars
 Prerequisites
 You must be a Certified QuickBooks ProAdvisor or Intuit ISP
 You must be a Basic member of the National Advisors Network
Next meeting is here at 6pm on Tuesday, January 4
Email nansf@bizpropete.biz to be added to our mailing list
To join NAN, go to www.nationaladvisornetwork.com
Chapter information is on the above site