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Thread: Kinda of an Accounting Question

  1. #1

    Default Kinda of an Accounting Question

    Hello everyone:

    So I'm using Quickbooks in my small business but it seems like the purpose of the program (and how it's typically used by most businesses i'm guessing) is to follow the generally accepted accounting principles (GAAP) to keep track of the flow of funds in order to prepare your tax return. I was originally trying to use it to both prepare tax return and also to tell me as much information about the business as possible (examples: complete list of every item in the business and how much it is all worth, keeping track of how much money goes into specific company development projects, trying to track investments, etc.). Now it seems like that's overkill for accountants and general purpose accounting and I should keep track of all this stuff elsewhere and use quickbooks for the bare minimum for filing taxes. Is that what people are doing and, if so, what software are you using to track all this other information? If not, are people just doing this stuff within quickbooks via their accountant or are people generally not worrying about this stuff?

    Thanks in advance

  2. #2

    Default

    So I think I for the most part figured out the answer to my question. It is similar to the guy's response on my other thread only I need to search/research into EAM software. Thanks anyways. I'm probably good now but feel free to reply if you think you know something I don't and wouldn't mind sharing

  3. #3
    Mr. Tax Man
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    Much of what you describe isn't accounting. QuickBooks does have a fixed asset manager and can keep track of inventory assuming you have the right package that can offer you these full benefits. But tracking time on projects and determining profitability is more project management. Tracking investments is also not anything any company does as one doesn't need to know the fair value of investments at every moment of the day.
    Small Business CPA
    "A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."

  4. #4

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    Yes. Thank you for confirming this.

    Are you sure all companies don't track investments? Or do you mean they just don't do it via their accountant and keep track of it for taxes?

  5. #5
    Mr. Tax Man
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    I've audited Fortune 1000 companies and small community organizations. They don't track investments in their accounting ledgers -- they post only what is needed for an adjustment and that is because they issue financial statements.

    For tax purposes, you don't get to write off or benefit from unrealized losses or have to recognize unrealized gains. So anyone that tries to maintain their books in accordance with what they file with the IRS don't record a lot of activity (dividend / distributions essentially).
    Small Business CPA
    "A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."

  6. #6

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    QuickBooks Online (QBO) operates very differently from the desktop version. You can purchase a monthly or yearly license and updates happen automatically as they are released. Some reasons businesses choose QBO are:


    Access from any location including mobile devices
    Cost effectiveness
    Integrates with a broad range of additional apps that create a financial eco-system for small business
    Many small businesses, without a need for complex reports, will opt to use the online version. Startups also tend to use this version because of the low cost and accessibility.


    There are three options to choose from with QuickBooks Online: Simple Start, Essentials and Plus.


    Simple Start costs about $15 per month. It covers the basic needs of a business; tracking income and expenses, invoicing and syncs with your bank. If you need more features than Simple Start offers, the next option is Essentials.


    Essentials costs around $30 per month and has additional features such as bill pay and profit & loss reporting.


    Plus offers more advanced features. It costs around $40 per month and provides everything that Simple Start and Essentials provides along with inventory tracking and 1099 preparation.


    The price for QBO fluctuates so we can’t provide an exact monthly fee. There are added fees depending on the number of users and if you want to integrate applications at time of purchase.


    How Much Does QuickBooks Desktop Cost? A Review of Features and Pricing
    QuickBooks Desktop (QBD) allows for more in-depth reporting like manufacturing, inventory, and job costing. It also allows for more users per file. Some top features include:


    Multiple User Access
    Job Costing if you use Intuit or Insperity Payroll
    Profit and Loss by Class, Service Item, Customer or Job
    Forecasting
    1099s
    Unlike QuickBooks Online, you purchase the software, install on your servers or desktop, and have the option of updating every year. QBD has upfront cost because the software has to be purchased. There are three options to choose from: Pro, Premier and Enterprise.


    Pro software starts at $300 and provides up to 3 users per license.


    Premier ranges from $500-$1,200 with 5 user licenses. Premier also allows your business to track inventory and make purchase orders.


    QuickBooks Enterprise is more robust and costs $2,200 to $5,000 depending on the licenses you need. If you need accurate job costing and manufacturing, this is the best option.


    Just like QBO, the cost can vary drastically for this product depending on how many users and the specific features your business requires. To know more about QuickBooks Online vs Desktop visit Apps4rent.

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