Is your firm ready for tax time? If your answer is no, I have a few QuickBooks® Apps that can help you and your clients get ready faster than ever before. These apps connect directly with QuickBooks Online and can be your secret short cut to getting ready for tax season.
Catch All Expenses
First, make sure that all of their expenses are entered into QuickBooks. Overlooked expenses could include business-related mileage, computer or equipment depreciation, and web hosting. Then, find the QuickBooks app that best works for each of your clients. Below is a list of the best apps for catching expenses, which will help your clients better prepare to deduct expenses for the 2016 tax year:
One app that can help with managing expenses is HubDoc, a data collection and management tool that allows your clients to pull in statements, CSV’s and check images (detail depends on your bank) so that they can quickly compile information if they didn’t stay on top of their data entry all year. HubDoc accounts can also be set up to regularly fetch documentation each month throughout the year, in order to alleviate any recurring issue with collecting statements at year-end.
Record Income and Uncollectable Invoices
Next, make sure all your clients’ income is recorded accurately, including any past due invoices. Your clients’ accounting and tax filing basis determines what types of bad debt and uncollectable invoices they can write off, a crucial area to be transparent with your clients when they are reporting revenue.
Zapier allows your clients to connect all kinds of applications together in all kinds of ways. If you or your clients use an app to record invoices that doesn’t sync to QuickBooks Online, Zapier may be able to help you connect the two. It also automates data entry tasks, eliminating tedious time spent entering numbers into the computer.
Get Inventory Straight
When it comes to inventory, make sure your clients focus on these five things: Beginning inventory, inventory purchases, ending inventory, damaged or unusable inventory, and any items removed for personal or employee use. Getting all of these numbers right is not only essential in determining the profitability of your clients’ business, but will also help them make better purchasing and pricing decisions in the future.
Any company selling inventory through multiple channels can most likely streamline their records using Cloud Cart Connector. With multiple plug-ins focused on sales channels, such as eBay, Amazon and Magento, Cloud Cart Connector can help e-commerce and multi-channel sales companies resolve their inventory issues for tax time.
Send Payroll Tax Forms
If your clients have full or part-time employees, make sure they send out all required payroll tax forms in January (W2s). If they paid certain types of contractors more than 0 during the year, you will need to have them send a 1099 tax form. The 1099 forms are due to the contractor by January 31. Because the government requires these forms, it is essential to get them straight, or else face potential fines from the IRS.
Don’t let the name fool you. Tax 1099 enables your clients to file all kinds of payroll forms and reports, not just the 1099. This app is great for those who run their payroll in old school ledgers and need to get all of their forms filed at year-end. In addition to 1099, you can file W2, W2-C, 941, 940 and 2290 forms. This web-based product works well for clients that need complete payroll tax forms for multiple businesses, since they can access all of their companies through their single sign on Intuit ID.
With a little organization and a few QuickBooks Apps, you and your clients can effectively prepare for tax season with less stress. And, once you’re all done, you may want to use that time you saved to put a tax preparation plan in place for 2016. The beginning of the year is the ideal time to implement new apps from the QuickBooks App Store to help save you and your clients time, allowing them to better run all aspects their business together in one place – by integrating with QuickBooks Online. Use QuickBooks Apps to put business processes in place and you’ll ensure your clients’ business stays in order throughout the year.