From Our Guest Bloggers | QuickBooks for Contractors blog

05Sep 2014 by Roxanne Brown

How do Amazon Merchants Reconcile in QuickBooks? Webinar

From Our Guest Bloggers, QuickBooks Corner

One of the biggest struggles for merchants that sell on Amazon Seller Central; or participate in Amazon FBA is how to reconcile their orders with the payments received. Amazon pays their merchants either weekly, bi-weekly, or in some rare cases daily. The majority of merchants I work with are paid bi-weekly or weekly. They also combine all types of payments in your settlement; making it almost impossible to truly see the details behind Seller Central versus FBA sales. I can’t stress how important it is to understand what’s going on with your Amazon accounts; however it’s definitely not an easy task – until now. Many merchants take it on faith that they are getting paid for everything and they try their best to understand what is selling and how profitable…

11Dec 2013 by BruceMc

Employee Reimbursements-Accountable vs Non-Accountable Plans

Be A Better Bookkeeper, From Our Guest Bloggers, IRS Information, Payroll Tips

As a tax preparer and payroll provider for my clients I always recommend, whenever possible, that they keep employee reimbursements’ out of payroll. The IRS even suggest this in Publication 583 (https://www.irs.gov/pub/irs-pdf/p583.pdf). If it is your habit to include reimbursed expenses in employee paychecks and your payroll is ever audited, be it from the IRS or the State, I am sure you and your employer could be very unhappy. In a perfect world, all expenses would be paid with company checks, or credit cards, leaving a clear path for accounting to identify the source and business reason for each expense. However, we do not live in a perfect world, and it is oftentimes necessary for employees to pay for these expenses. Reimbursements are not so cut and dry. If you…

20Aug 2013 by John Stahl

A secret revenue hidden in most contracting businesses

From Our Guest Bloggers, Webinars & Training

Everyday in your contracting business a potential revenue generating secret remains underutilized. If you have a business that estimates between 3 and 5 projects per week, making a few small changes can generate between 5 and 10 thousand extra dollars per year. This secret can also pre-qualify tire kickers and increase the closing rate on the jobs you bid. Here's the secret: Begin charging for estimates! Not possible you say? Let's take a closer look: It takes 4 critical elements to make this happen. #1 Change your mind-set I am surprised when contractors object to this approach when, honestly, they have never asked! The strongest objections I hear are from people who have never tried. I promise you that contractors are already doing this successfully in most markets. I used…

25Jun 2013 by Kimberly Shannon

Employees and Company Credit Cards – What’s the Charge?

Be A Better Bookkeeper, From Our Guest Bloggers, Vendors & Accounts Payable

If you provide your employees with a company credit card, eventually someone is going to use it for a personal expense. In many cases, the employee is not attempting to defraud the company. But in other cases, it can be intentional. Either way it can create potential problems for your business. Several years ago, one of my clients issued her bookkeeper a company credit card. After a period of time, the bookkeeper regularly used the company credit card for personal purchases and did not notify the employer or reimburse the company. As the balance on the credit card increased, the bookkeeper began making partial payments on the increasing balance. My client completely trusted her bookkeeper, and never reviewed the credit card statements prior to payment, and the balance became quite…

11Jun 2013 by Diane Dennis

Unconditional Waiver / Release Upon Final Payment – Part 5

Customers & Accounts Receivable, From Our Guest Bloggers

Once you’ve successfully collected your final payment it’s time to give your customer an “Unconditional Waiver and Release Upon Final Payment” form (#4 release). This release form will not include a “release through date” because it’s the final payment – it releases your lien rights, stop payment rights, etc. for the entire project. If you have suppliers include the same forms from them. Never issue a #4 release form unless you have been successfully paid in full for the entire project. If you do even though you haven’t been paid and you didn’t allow for the exceptions then the courts wouldn’t side with you because unconditional is unconditional – it’s final. State Requirements For Waiver / Release Forms Each state has specific requirements for release forms, although many states do…

28May 2013 by Diane Dennis

Conditional Waiver / Release Upon Final Payment – Part 4

Customers & Accounts Receivable, From Our Guest Bloggers

When it’s time to submit the invoice for the final payment you may need to include a “Conditional Waiver and Release Upon Final Payment” form (#3 release). Usually this release form does not include a “release through date” like the #1 and #2 forms do because it’s your final invoice on the project. If you have suppliers you’ll probably have to include these same forms from them. Once you’ve received payment and it has cleared the issuing financial institution then typically that Conditional Release becomes an Unconditional Release. That means you’ll never be able to file a lien on the project (which is okay as long as you’re paid in full). State Requirements For Waiver / Release Forms Each state has its own requirements for release forms. Although many are…

21May 2013 by Ben Smyth

Automating Job Costing Overtime, an 800 pound gorilla with an attitude

Certified Payroll/Prevailing Wage, From Our Guest Bloggers, Job Costing Tips, Payroll Tips, QuickBooks Add-Ons

Calculating and distributing employee overtime is a burdensome process that many business owners and payroll administrators have to deal with on a weekly basis. Everyone has a different opinion on just "HOW" that overtime is to be calculated and distributed. By everyone, I mean the business owner, the payroll clerk, heck even the Federal and State government. No wonder it's just a problematic situation! At first blush this seems drop dead simple. Overtime goes to the time worked after 40 hours, or maybe over x hours per day as well. This seems reasonable, but would it be simpler if overtime were just distributed over all the jobs that the employee worked that week. That seems fairer, as each job gets a share of the overtime costs for that week. Then…

14May 2013 by Diane Dennis

Unconditional Waiver / Release Form Upon Progress/Partial Payment – Part 3

Customers & Accounts Receivable, From Our Guest Bloggers

You’ve successfully collected your progress payment and now it’s time to provide your customer with an “Unconditional Waiver and Release Upon Progress Payment” form (#2 release). If you have suppliers include the same forms from them. The #2 release is unconditional which means you’re giving up all lien rights through the “release through date”. Never issue a #2 release form unless you have been successfully paid for that time frame. If you do even though you haven’t been paid the courts may not side with you because unconditional is unconditional – it’s final. State Requirements For Waiver / Release Forms Each state has specific requirements for release forms. Some states change their laws often (California had three changes to the same lien law in 2004, and then in 2011 and…

30Apr 2013 by Diane Dennis

Conditional Waiver/Release Form Upon Progress/Partial Payment – Part 2

Customers & Accounts Receivable, From Our Guest Bloggers

When it’s time to submit an invoice for a partial / progress payment you may need to include a “Conditional Waiver and Release Upon Progress Payment” form (#1 release). If you have suppliers you’ll probably have to include these same forms from them. Once you’ve received payment and it has cleared the issuing financial institution then typically that Conditional Release becomes an Unconditional Release (#2). That means you’ll never be able to file a lien for that time frame. State Requirements For Waiver / Release Forms Each state has its own requirements for release forms. California recently changed its mechanic’s lien laws requiring new wording on its release forms. Keep an eye out for any possible changes in the requirements for the state(s) you work in. Usually a #1 release…

16Apr 2013 by Diane Dennis

Conditional and Unconditional Lien Waiver/Release Forms for Progress and Final Payments – Part 1

Customers & Accounts Receivable, From Our Guest Bloggers

Knowing which lien waiver/release form to use when on a construction project can be confusing at times. This series of articles will help to clear up some of the questions. Make Sure The Forms From Your Vendors Are Accurate Whether you’re a general or sub, it is imperative that you make sure the forms you collect from your vendors are legal and accurate – don’t and you’re risking a lien on the property and breaching your contract with your customer. Helpful Tips Photocopy checks before depositing them so that you have the information from the front. This allows you to verify that a check has cleared the issuing bank before you submit an unconditional release. Invariably papers end up misfiled or not filed. Include your internal job/account number on the…

13Apr 2013 by Nancy Smyth

InformedContractors.com – A New Resource for Contractors

From Our Guest Bloggers, News You Can Use

Diane Dennis of Monk and DBug, LLC, known as "Diane at TheContractorsGroup.com" since 1999, is launching a new website and newsletter focused on making life easier for contractors - InformedContractors.com. This is Diane's 4th in a series of construction-related websites, all of which focus on providing information that her readers specifically have requested. Each newsletter from InformedContractors.com is made to keep up with the busy contractor rather than slow him down, because it: is designed to be read in 5-10 minutes has one article (written by an industry expert) answering reader's questions provides practical solutions for contractors to increase their income (and efficiency) while decreasing their hassles Early on in Diane's contracting career, she learned that there was painfully little information available for contractors. Now she feels the exact opposite…

29Nov 2012 by Shannon Tucker

What Are DB File Fragments and Why Do I Get Them in My QuickBooks File?

"Stuff" No One Ever Told Me About..., From Our Guest Bloggers

Whenever you press the F2 key in QuickBooks, a window pops up that tells you a lot of things about your company data file. One of the numbers you see is “DB File Fragments”. What’s that? [caption id="attachment_3718" align="alignright" width="300" caption="Image courtesy of nuttakit / https://www.freedigitalphotos.net/"][/caption] DB file fragment is basically a measurement of how much your company file changes. It reflects how much and how often QuickBooks messes with it. This is not something peculiar to QuickBooks files. With any file in Windows, as changes to the file happen on the hard drive, Windows sometimes keeps segments of data together, and sometimes Windows will assign segments of data somewhere else on the drive. That “somewhere else”, in QuickBooks, is a DB file fragment. When you restore a portable copy,…

24May 2012 by BruceMc

Is Your CPA REALLY the Right Person to be Completing Your Tax Return?

From Our Guest Bloggers, IRS Information

Is your CPA REALLY the right person to be completing your tax return? Did you know that there are different educational requirements for different types of tax preparers? Maybe you have heard maybe not. The IRS is beginning to mandate preparers who complete your tax return. Yes, if you use a paid tax preparer there are rules that are being mandated by the IRS. These regulations/rules are being put in place in an effort to assure you that you are getting the best possible return from a knowledgeable trained preparer. So what are they? What regulations are being implemented to protect you? The IRS will require all individuals who are required to sign a federal tax return as a paid tax return preparer to register and obtain a…

26Mar 2012 by Joyce M. Washington

Construction – Tools & Tax Tips

From Our Guest Bloggers, IRS Information

In the construction industry, for tax purposes, you do treat the purchase of a hammer and a cement mixer differently. Sure you may view them as "tools of the trade" - but the IRS thinks differently! Construction is by nature a tool driven industry. Buying and providing them can get expensive. But how do you know when you can expense a tool and when you should capitalize a tool and depreciate (expense) it over time? Here are a few tips. First off, let’s define expenses from the tax perspective. Any business expense that is considered to be ordinary and necessary is deductible. An “ordinary” expense is considered to be something that is common and accepted in your industry – in this case, the construction industry. To be considered “necessary”,…

29Feb 2012 by Seth David

Planning Your Accounts Receivable Collections

Customers & Accounts Receivable, From Our Guest Bloggers

How long will it take to collect your receivable? This is an important questions to answer, especially when you’re planning cash flow (see my video on Cash Flow Projections). Most businesses have a built in assumption that they will collect all accounts receivable within 30 days of billing and even within that I know I can walk 10 people through their own accounts receivable and they will immediately begin to identify clients who always take longer to pay vs those who consistently pay immediately. Managing your accounts receivable collections a little more closely will help you in a few ways. Shine more light on the clients who consistently pay late Plan your cash flow outside of what the “terms” say Get a better handle on your cash flow and expected…

Category: From Our Guest Bloggers