In a previous article on my own blog entitled “Everything you always wanted to know about the QuickBooks hosting program but were afraid to ask” , I mentioned that I would be providing information on what makes these providers different. I still intend to do that, but I must proceed delicately. You see, I am employed by one of the Commercial QuickBooks hosting providers, InsynQ, and while I make every attempt to be fair and unbiased, the other providers may not necessarily see my motivations as being all that altruistic. Rather, there is a great potential for them to perceive that my blog posts about QuickBooks hosting providers is simply a way to put InsynQ above the rest. So, I will proceed with my reviews of the various hosting service providers, and will attempt to be as unbiased as possible. In fact, the “blurb” about each provider listed below comes, in most cases, directly from the provider, and is being posted with their approval. Unfortunately, much of it is “marketing speak”, so I must necessarily expand on that content.
Anytime, Anywhere
Naturally, I believe very strongly in InsynQ’s business and technology model, and I really want them (us) to “win”, but I’m also fair enough to recognize that one size never fits all. So, here we go… proceeding with caution.
Note: In these descriptions, I’m not going to focus a lot on the underlying technologies used to deliver the hosting service. While the platform does make a huge difference in terms of what the provider can do, what the customer experience is like, etc…. it is difficult to try to compare each approach based solely on technology. It’s what they elect to do with the technology that really matters, and that drives the services being offered. Just recognize that QuickBooks is QuickBooks, and each provider has the ability to deliver QuickBooks very well.
RealTime Bookkeeping
Founded in 2000, Real Time Bookkeeping offers a customized and privately labeled virtual office solution integrated with their proprietary software the e-Dashboard. Created for accounting professionals, the e-Dashboard offers document management and workflow tools with application hosting. QuickBooks hosting is a primary service offering and is central to the functionality of the e-Dashboard and application hosting services. Custom built virtual servers are also offered to host supporting tax software programs.
Joanie’s comments: In the beginning, RTB was ManageComm, an online bookkeeping firm. In 2007, ManageComm launched the Real Time Bookkeeping System. Per the press release announcing the availability of the RTB system, ManageComm solutions include complete online bookkeeping and controller, tax preparation and business consulting services. What I believe makes RTB different is their positioning as a provider to the accounting/bookkeeping market, focusing on delivering a structured workflow solution (the e-Dashboard) and certain hardware elements (dual monitors, scanners, etc.) which help make outsourced/online bookkeeping processes more streamlined. RTB completes the solution set by offering in-depth program training via the RTB University.
Uni-Data & Communications
In business since 1989, Uni-Data is primarily a managed technology service provider, offering various levels of outsourced information technology services to an enterprise business market. Uni-Data’s variety of service offerings benefit businesses by allowing them to offload technology management responsibilities and focus on their core operations. Uni-Data’s offerings range from localized IT service, to solution development and project management, to hosted application services. For Uni-Data, QuickBooks hosting is one of several business areas, and is aligned with their outsourced/managed IT services offerings for mid-size businesses and franchise operations.
Joanie’s comments: Uni-Data does a lot of things for businesses, and application hosting is just part of it. As a managed service provider to mid-sized businesses, the focus isn’t only on hosted applications and datacenter delivery. Rather, Uni-Data has the staff and the experience to provide a wide range of outsourced IT services to their business customers, involving localized and hosted IT service.
Right Networks
Right Networks® is a privately held, US-based company that provides data center management, advanced application hosting, internet services, and computer help desk support. Through its proprietary server virtualization technology, Right Networks has established itself as one of the leading providers of application hosting for the desktop editions of QuickBooks. Right Networks provides centralized, redundant systems, banking-class security and automatic off-site back-ups.
Joanie’s comments: Right Networks has been operating since about 2002. In addition to offering QuickBooks hosting services, Right Networks is also responsible for managing the datacenter for Mangosoft‘s Mangomind and FileTRUST solutions, and also provides localized IT services. Rather than utilizing commercially available virtualization solutions and platform technologies, one of the differentiators for Right Networks is that they provide their hosting service on a proprietary platform, described as “virtualization technology with end-to-end clustered, enterprise-class infrastructure”. **NOTE: Please see a correction of this information at the end of the article! – I got updated information – J
Xcentric
In business since 2002, Xcentric focuses almost exclusively on serving professional accounting firms. Hosted application deliveries are in the form of “published applications”, and provide a comprehensive working environment for the professional accounting practice. Xcentric’s specialty in working with CPA firms, and with solutions designed specifically for the professional CPA practice, has allowed them to craft a service model which is intended to address the total IT requirement for the firm. Xcentric wants to be the entire information technology infrastructure for the professional accountant, removing servers, applications, and other elements from the local environment and delivering them entirely as an outsourced application service.
Joanie’s comments: For Xcentric, QuickBooks hosting is not a primary focus. While hosting QuickBooks applications and data is a necessary addition to serving the professional accounting market, it is not a primary application or service focus.
InsynQ CPAASP
InsynQ is one of the old guys on the block, having delivered the first hosted application service in 1997. InsynQ specializes in hosting and managing a wide variety of business applications, and is positioned as a solution provider to businesses who desire to have their IT services fully-managed and delivered to them in the form of hosted application services. InsynQ hosts many applications, from productivity solutions to complex application integrations, and is therefore able to address a variety of application and integration needs. While InsynQ CPAASP focuses primarily on accounting and finance solutions, as well as the solutions they integrate with, the service is not oriented specifically towards any one business model. Rather, the CPAASP business model was developed to enable not only accounting professionals, but to extend the capability to the client businesses, addressing business functional and operational requirements. InsynQ works closely with numerous software vendors, as well, bringing their solutions into the hosted platform and helping craft hosted and subscription delivery models around those products.
Joanie’s comments: For CPAASP, QuickBooks hosting is a primary focus, as is the hosting of add-on and integrations for QuickBooks. Because InsynQ CPAASP has a philosophy of “working and playing well with others”, the company supports a wide variety of applications from various developer sources and is specifically experienced in working with software publishers and their respective sales and distribution channels.
That’s all for today… more reviews coming soon!
J
**NOTE: Correction regarding Right Networks
Apparently, the Mangosoft folks took a few liberties by mentioning that Right Networks manages their datacenter, etc. According to Phil Romine at Right Networks,” the web page will be changed, and also will include a note to point out that Right Networks QuickBooks hosting does not use any Mangosoft technology. Mangosoft appears to recommend Right Networks apparently because their customers found our services to be useful. We are happy to receive that recommendation, but Mangosoft has no legal relationship with Right Networks.”
Welcome to Top 10 Tuesday – Tips from around the web! I hope you all survived your Monday.
This weeks top 10 articles are from:
Business Blogs:
Social Media Explained in Plain English
Intuit Small Business Blog
Should You Let Your Employees Telecommute? Legal Questions to Consider.
How Does Asset Depreciation Work?
Inc. Magazine
You’ve created a company Facebook page. Now what?
Forbes Magazine
IRS Wins Big in Six Year Audit Push
Journal of Accountancy
A primer for accountants on the ins and outs of using LinkedIn for business purposes
Nerd Enterprises
How to insert videos, images, and formatted text into your Facebook page
Accounting Web
Federal Contracts – Unallowable Costs Explained
One Hour Bookkeeper
Diary of a Bad, Bad Bookkeeper – A Warning Sign
That’s it for this week folks, boy it is really a tough job picking just 10 favorites every week. What were some of your favorite articles/blog posts? Care to share any of them with us?
Verifying the accuracy of the certified payroll reports that you can generate from QuickBooks Premier and Enterprise versions – IF you also subscribe to Enhanced Payroll, is a must for anyone in the construction industry.
I’ve been watching the posts on the Intuit Community Forums about the alternate, substitute U.S. Department of Labor WH-347 certified payroll reports that can be generated if you have QuickBooks Premier or Enterprise AND an Enhanced Payroll Subscription. It seems like many people want to know how to generate the reports, if the reports are approved through the DOL (Department of Labor), why they have suddenly stopped working, how to issue “No Work Performed Reports”, and how to tell if the reports they are generating are accurate.
This article will focus on the requirements of the U.S. Department of Labor form WH-347 and how you can check to verify whether or not the reports from QuickBooks are accurate BEFORE you submit them – so that you will be paid in a timely fashion; we’ll be focusing on:
- Section 4 – Day & Date – Hours Worked Each Day
- Column 5 – Total Hours
- Column 6 – Rate of Pay
- Column 7 – Gross Amount Earned
- Section 8 – Deductions, and
- Column 9 – Net Wages Paid for Week
Columns 1-3 are pretty straight forward and each row of information relates to a single employee and a single Work/Trade Classification.
Section 4 – Day & Date – Hours Worked Each Day
In this section you are to report by day and date the number of hours (straight time and overtime) a specific employee worked, under a specific Work/Trade Classification on the job that you are generating the report for.
Column 5 – Total Hours
The total number of Straight and Overtime hours that the employee worked (for a specific Work/Trade Classification) for the week in question.
*Column 6 – Rate of Pay INCLUDING Cash Fringe Benefits
In the “straight time” box for each worker, list the actual hourly rate paid for straight time worked, PLUS cash paid in lieu of fringe benefits paid. When recording the straight time hourly rate, any cash paid in lieu of fringe benefits may be shown separately from the basic rate. For example, “$12.00/.40″ would reflect a $12.00 base hourly rate plus $0.40 for fringe benefits. When overtime is worked, show the overtime hourly rate paid plus any cash in lieu of fringe benefits paid in the “overtime” box for each worked or “$18.00/.40″. This is one of the biggest faults of the certified payroll report generated by QuickBooks – if you pay the fringe benefit rate in cash to the employee as part of his/her hourly rate of pay you MUST manually update this information each week.
Column 7 – Gross Amount Earned this Job and ALL Jobs
Enter gross amount earned on this project. If part of a worker’s weekly wage was earned on projects other than the project described on this payroll, enter in column 7 first the amount earned on the Federal or Federally assisted project and then the gross amount earned during the week on all projects, thus “$163.00/$420.00″ would reflect the earnings of a worker who earned $163.00 on a Federally assisted construction project during a week in which $420.00 was earned on all work. These amounts can easily be verified by looking at the Employee’s Paycheck Detail in QuickBooks.
Section 8 – Deductions
Five columns are provided for showing deductions made from the employee’s paycheck. If more than five deduction are involved, use the first four columns and show the balance deductions under “Other” column; show actual total under “Total Deductions” column; and in the attachment to the payroll describe the deduction(s) contained in the “Other” column. All deductions must be in accordance with the provisions of the Copeland Act Regulations, 29 C.F.R., Part 3. If an individual worked on other jobs in addition to this project, show actual deductions from his/her weekly gross wage, and indicate that deductions are based on his gross wages. These amounts can easily be verified by looking at the employee’s Paycheck Detail in QuickBooks. Remember, ONLY deductions from the employee’s paycheck are to be reported here – Federal Withholding, State Withholding, the Employee portion of FICA and Medicare, Child Support, Wage Garnishments, etc.
Column 9 – Net Wages Paid
This amount should equal the employee’s NET paycheck for the week and should match exactly the amount of his/her paycheck.
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If your final QuickBooks certified payroll report doesn’t look like this wh347, it’s time to opt for a more accurate and less time-consuming option that will truly automate the process for you.
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Many people generate the QuickBooks Certified Payroll report and either manually make changes in it while it is still in Excel, prior to printing the report OR they will print the report and then use it as a guideline for manually completing the actual “fillable report” from the U.S. Department of Labor Website – which is a highly error prone and time-consuming process.
Additionally, QuickBooks does not have the ability to generate a “No Work” performed payroll, so if you need one, and it’s likely that you will, you’ll need to manually complete one of these also using the fillable form from the DOL website.
Manual entry of the same information multiple times in multiple places is a huge waste of time and let’s face it, every time that you have to enter the same information in yet another place the higher the risk of transposition errors which result in rejected reports and delayed payment.
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*Fringe Benefits that are paid to a Union or a bona-fide plan are NOT displayed on the report and the Straight time rate would be displayed as $12.00 and the Overtime rate as $18.00 in the Rate of Pay Column. The certified payroll report generated by QuickBooks inaccurately displays any fringes paid to a Union or bona-fide plan and you MUST manually correct this each week.
We hope you have found this article helpful, if so please leave us a comment.
Freebie Friday – it’s here again. The end of another workweek and just in time! I don’t know about you, but I’m exhausted and ready for a couple of days off! Or at least with a lighter workload anyway!
This weeks Freebie Friday eBook is a Windows 7 pocket guide – NOT anything that I’ve written, but a valuable resource that I found on the web. I downloaded it at the end of December and have referred to it many times since I have switched to a Windows 7 64-bit machine machine.
Some of the ebook is very technical but other sections make it well worth the download.
Get your free 385 page Windows 7 Pocket Guide by completing a request form at TradePub.com
They also a lot of free trade magazines, so be sure to check out this website.
Have a great weekend!
Why Outsource Your Construction Bookkeeping?
A Simple Explanation Of Construction Accounting And Why You Should Outsource It:
- It is probably the most difficult and complex accounting system ever invented
- It is deceptively simple, it looks easy, like flying a plane 85% boring, 15% sheer terror
- At the auction every contractor learns the true cost of cheap accounting
EXTERNAL Accounting is all about things going on OUTSIDE your business:
- Financial Statements for bank loans, lines of credit, investors and bonding requirements
- Tax returns for local, state and Federal tax returns
- Bankruptcy court filings, some firms do not generate financial statements until they are here
- All of these reports and forms are of limited use to the contractor
INTERNAL Accounting is all about things going on INSIDE your business:
- Current bank balances reconciled every month or more often
- Reports showing Cash, Money Coming In, Money Going Out, Profit & Loss, Net Worth
- Job Profitability Reports…which jobs made and lost money
- Financial Statements for you to know how well your business is performing as a whole
RETAIL Accounting is all about customers COMING to the business:
- These businesses have fixed locations for their stores, offices, workshops and websites
- Customers shop at the BUSINESS LOCATIONS and make purchases
- Inventory usually has (1) Account and (1,000s) of Items in QuickBooks
- Cost of Goods Sold usually has (1) Account and (50+) of Items in QuickBooks
- Sales usually has (1) Account in QuickBooks and (10+) Items in QuickBooks
- Sales Tax Codes usually has (1) Account in QuickBooks and (1) Item in QuickBooks
CONSTRUCTION Accounting is all about the business GOING to the customers:
- These businesses move their stores, offices and workshops to their customers location
- Customers shop at THEIR LOCATIONS and make purchases
- Inventory usually has (0) Accounts and (0) Items in QuickBooks
- Cost of Goods Sold usually has (100+) Accounts and (1,000s) of Items in QuickBooks
- Sales usually has (20+) lines in QuickBooks and (1,000s) of Items in QuickBooks
- Sales Tax Codes usually has (1) Account in QuickBooks and (100s) of Items in QuickBooks
Construction Accounting is a very tiny fraction of the accounting industry which why so little time is spent on covering it in most colleges and universities. The only way to really understand construction accounting is to actually spend time on a construction site and experience firsthand what construction is, what it does and how it works.
There Are Nine Steps To Good Construction Accounting
- Sort Paper
- Data Entry
- Bookkeeping
- Reconciliations
- Accounting
- Tax Reporting
- Financial Review
- Generate Reports
- Contractor Makes Decisions Based On Reports
Who Will Do It?
- The owner can; however do you really want to learn it and do it all yourself?
- Your spouse, roommate, sibling, neighbor kid or anyone else to do it for FREE?
- You could get a cheap bookkeeper
- You could get a good Bookkeeper that understands construction accounting
Let’s Examine Two Types Of Bookkeepers, Good And Cheap
What are your childhood memories of regarding anything related to Bookkeeping? For most people it was overhearing grownups gripe and growl about money, tax returns, balancing the checkbooks and how it was so boring.
Some of us grew up and learned what it meant not to balance our checkbook and make involuntary contributions to the stores and the banks in the form of “overdraft fees”. How insane it that? Not only are you are low on funds, you just got lower. In some case you hit rock bottom and started drilling.
There is a lot of negative energy attached to bookkeeping and no super hero bookkeepers to admire and look up to…go figure, it just doesn’t add up!
Most bookkeepers drifted into it and without realizing the ramifications of not having the foundational skillsets required because it may have been an entry level position. Being self-taught lead they to develop a collection of bad habits and paradigms and they sank slowly into quagmire of quiet desperation to become cheap bookkeepers.
They dare not attend classes, seminars, lectures or seek continuing education because the lack the proper foundation in the principles of accounting let alone the complexities of construction accounting. So over time they devolve deeper into even cheaper bookkeepers bouncing from one job to the next and in some cases opening their own firms. They are hired by contractors searching for the lowest price because they do not understand the true cost of hiring professionals until it is too late. As for the bookkeepers themselves they often wind not being paid because the contractor went bankrupt before paying them along with a number of other suppliers.
A few people make a conscious decision to pursue bookkeeping as a profession and they do it with a passion. These folks acquire a proper foundation in the principles of accounting and then add the skill sets to master the complexities of construction accounting. They continue attending classes, seminars, lectures and continually seek education and knowledge. They are passionate about their profession and live their vision of being a part of a team that works together to build and maintain civilization for future generations because some of the homes, buildings, roads, bridges and other projects will continue to serve long after the builder and the bookkeeper are gone.
What Kind Of Bookkeeper Do You Have?
Good Bookkeepers:
- Arrive on time and leave on time
- Care about you as a person, your company, your staff, your suppliers
- Cheerful, thinking, responsible adults
- Continually learning new skill sets because they take pride in their work
- Embrace processes and procedures that allow everyone to succeed
- Produce reliable results early and often
- Take a lunch break to recharge their minds and bodies
- Take reasonable breaks during the day to clear their mind
- Team players working to maintain the integrity of your QuickBooks
What Is Required To Find And Keep A Skilled Bookkeeper?
- A living wage with benefits
- Air Conditioning in the summer and heat in the winter
- Company paid training to continually update their skill sets
- Do not expect them to ANSWER THE PHONE
- Good lighting in their office and the building in general
- Kitchenette with free beverages, snacks, frozen foods and a microwave
- Knowledge base available only to qualified Accountants
- Lots of room to spread out paper and assorted files
- Private office with a door so they can work in quiet and think
- Provide them with 24-7 technical English speaking U.S. based phone support
- The latest in computer hardware and software with lots of power
- Two large flat screen dual monitors with DVI inputs and high resolution
- Understand and implement Deming’s 14 points, Covey’s 7 Habits and Good To Great
- Your QuickBooks continually backed up so there is no worry about losing data
Cheap Bookkeepers:
- Arrive late and leave early to make up for it
- Are Time and Effort Driven / Not Results Driven like selfish, greedy, rich, business owners
- Avoid learning new skill sets because there is nobody to check the books and look for problems
- Change jobs while the tax return is being prepared since the books are a mess; and the jig is up
- Come in a little bit late and leaving a little bit early to make up for it to find your tolerance limit
- Do not care about you, your company or anyone else associated with your company
- Get even with the boss for every perceived injustice against themselves and society as a whole
- If you insult them it is like insulting the cook; use your imagination, and be very afraid
- Keep the boss busy with lots of mindless crap to divert attention from why the books are a mess
- Let the boss think they are in control of the bookkeeper and the Accounting until it is too late
- Make the boss think they are looking out the best interest of the company, LOL!
- Make work expand to fill whatever time you are willing to pay them to get it done
- Most popular parting comment: “Chaos, panic and disorder…my work here is done”
- Negotiate for additional perks, benefits, changes, and elimination of personal accountability
- Network for a better job with your clients, suppliers, vendors, and competitors
- Represent themselves to outsiders as the owner or manager with decision making authority
- Spend company time on texting, messaging, e-mailing, web surfing, cell phones, and socializing
- Take lots of long breaks to waste time, grumble and complain about everything under the sun
- Train the boss to leave them alone by getting upset or angry whenever the boss wants anything
- Want the business to be fair— a place where the owners do not earn more than Bookkeepers
- When the business closes its doors they proudly declare the boss was incompetent and stupid
- Work in a chaotic, neurotic, psychotic, selfish, disorganized, blame game environment
- Work through lunch to leave early (Be at the office for 7 hours and get paid for
What Is Required To Attract And Keep A Cheap Bookkeeper?
- A cramped little space for the bookkeeper to work
- A miserable, overworked, untrained, underpaid, Bookkeeper waking up every day hating life
- A substandard wage
- An antique computer with one monitor and a slow printer
- Bad lighting in their workspace
- Have them answer the phone, run errands and run errands
- Little or no continuing education in accounting or QuickBooks
- Nobody to ask for help with complex Accounting and accounting issues
- Put them in a public noisy environment with lots of interruptions
- QuickBooks tech support coming from someone who barely understands English
- You pay for their training because all learning is by experience
- You wonder if they are trying to run you out of business; in most cases yes
- You wonder what is wrong with them, where are the reports you need to run your company
High Tech Offices Are Now Standard Operating Procedure
They are more critical than having a cell phone and if you think otherwise it may be time to polish up your resume and get ready to look for a job with one of your competitors. Either invest $250,000+ to setup an accounting office and staff it with qualified people or outsource it to a qualified construction accounting firm for less money than what you are spending now and use only the parts you need when you need them
At minimum you need to be able to access from anywhere in the world:
- QuickBooks desktop version not a cheap version with 100’s of advertisements
- Your important documents within a paperless environment
- Your project management system
- Your Customer Relationship Management system
The great obstacle to discovering the value of Construction Bookkeeping which generates good reports and being informed in time to seize opportunities and avoid disasters is not ignorance; but the illusion of trying to save money doing it yourself or hiring cheap bookkeepers because good bookkeeping like good construction is not cheap.
Summary
I have been involved with Construction and Construction Accounting for over thirty years. All of the examples of Good and Cheap Bookkeepers in this article are from my personal observations and discussions with bookkeepers in contractor’s offices, exit interviews conducted when bookkeepers are leaving a company and from classes and seminars.
If you have a Good Bookkeeper treat them like the precious asset they are
