Month: January 2022

How to Set Up Quickbooks Online

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Guide on How to Set Up Quickbooks Online

Are you a new business owner or have been in business for so long but using other accounting software other than Quickbooks Online and would want to switch? Then this is for you!

Setting up or switching to Quickbooks Online is easy as long as you have the information you need. It becomes complicated though when old records are messy. It’s doable, here’s the way to do it.

1. Sign up for Quickbooks Online and choose the plan that suits your business. There is a 30-day free trial that you can try to get the hang of it.

2. Set up you company profile (new) or migrate (old) your files to Quickbooks Online .

3. Link your bank and credit card accounts to get automatic bank feeds. This will save you and your bookkeeper tons of time!

4. Import your list of employees, vendors and customers. Or you can add names along the way.

5. Set up your invoices, enable receipts, taxes and other stuff.

Follow these process and you’re ready to go but if you’re having trouble, contact us and we will help you on your first step to financial clarity!

Why your books needs to be updated?

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Many businessowners wait until yearend to do their books rather than doing it consistently during the year.  It’s a common problem, we know, because keeping the books updated is a tedious job in itself.  It takes a lot of dedication and time to deal with it.  It might be exhausting for some but it is rewarding in the end.  Why?  Here are some of the reasons your books needs to be updated:

Your Accountant Will Love You
Getting reports early for tax season is gold, especially for tax planning. That means your tax return will be prepared early and any benefits you can get early as well.


Peace Of Mind
This is priceless! Knowing that you are already prepared for any paperwork and documents, frees you from thinking about it.

Know The Actual Status Of Your Business On Time
This is vital for decision makers. Having an updated books anytime of the year means you can generate reports real time and make informed decisions about your business.

Availability To Third Parties
If you are applying for a loan, looking for more funding and investors, an updated books is essential to supply them with documents that are not outdated.

Bookkeeping is hard to keep up because there are far more important things to focus to keep the business going and profitable. Good thing, you don’t have to do it yourself.  You can delegate it to someone in-house or outsource it to someone who is knowledgeable and has the dedication to do the bookkeeping. Better bookkeeping = better business!

Basic eCommerce Profit and Loss Chart of Accounts

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One of the hardest industry when it comes to accounting and bookkeeping is eCommerce. Why? Because the market and trade is ever changing and has become complex overtime. It is better to have it setup by an expert for a clean start but if you want to do it yourself, then you got to start with something. The best route is to begin with your Profit and Loss Statement accounts because this will be the most used accounts in the course of your business.

What is a Profit and Loss Statement?
A P&L or Income Statement will show your Revenue, Costs and Expenses. The bottom line of this report will show you if you made a profit or a loss, hence, the name.

Here are the basic items you will get to see on a Profit and Loss Statement for ecommerce business.

This is not all-inclusive but this will go along way and you could add more accounts when needed. Just make sure to classify it correctly and be consistent with your recording.

If things get messy and you want to save time and money, contact us!

Do you need to file or send out 1099-NEC & 1099-MISC?

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Dear Clients and Partners,

Just want to share with you some tax-related matters for your information, this is about 1099-NEC and 1099-MISC.

What are these forms?
Form 1099-MISC (Miscellaneous Information) or Form 1099-NEC (Nonemployee Compensation) to:

  • Report payments made of at least $600 in the course of a trade or business to a person who’s not an employee for services (Form 1099-NEC).

-simply put these are contractors, project-based or self-employed individuals

  • Report payments of $10 or more made in the course of a trade or business in gross royalties or payments of $600 or more made in the course of a trade or business in rents or for other specified purposes (Form 1099-MISC).

-examples are rent paid for the year and fees to attorneys

  • Report payment information to the IRS and the person or business that received the payment.

Note that these are for US-based contractors and payees only, if you are outsourcing from anywhere in the world other than the US then you don’t have to file or send out these forms.

Let us know if you have paid these kinds of payees, so that we can generate reports for you that you can use for your business or send to your accountant.

Deadlines for submission to IRS:

  • 1099-NEC, January 31 either by e-file or by mail
  • 1099-Misc, March 1 if filed by paper and March 31 if filed electronically


For your US-based employees, you need to fill out Form W-2 and submit to SSA, IRS and employees on or before January 31.
Hope this information will be helpful.  Thank you!

All the best,
Melchie


IRS Key Filing Season Dates

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There are several important dates taxpayers should keep in mind for this year’s filing season:

  • January 14: IRS Free File opens. Taxpayers can begin filing returns through IRS Free File partners; tax returns will be transmitted to the IRS starting January 24. Tax software companies also are accepting tax filings in advance.
     
  • January 18: Due date for tax year 2021 fourth quarter estimated tax payment.
     
  • January 24: IRS begins 2022 tax season. Individual 2021 tax returns begin being accepted and processing begins
     
  • January 28: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify.
     
  • April 18: Due date to file 2021 tax return or request extension and pay tax owed due to Emancipation Day holiday in Washington, D.C., even for those who live outside the area.
     
  • April 19: Due date to file 2021 tax return or request extension and pay tax owed for those who live in MA or ME due to Patriots’ Day holiday
     
  • October 17: Due date to file for those requesting an extension on their 2021 tax returns

    Source: irs.gov

When to Prepare 1099s and W2s

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Tax season is here!

Time to prepare your Form 1099’s and W2’s and send to recipients on or before January 31, 2022.

You need to file Form 1099-MISC for each person to whom you have paid during the year:

*At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
*At least $600 in:
Rents.
Prizes and awards.
Other income payments.
Medical and health care payments.
Crop insurance proceeds.
Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
Payments to an attorney.
Any fishing boat proceeds.

In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.

Hope your books are already updated to be able to generate these reports. If not, we can help. Send us a message and let’s schedule a call.

Happy New Year!