Understanding Bill.com — Our Trusted Tool

Understanding Bill.com — Our Trusted Tool

When it comes to managing our clients’ bookkeeping, we at AB&P trust Bill.com to help us securely and efficiently handle all accounts payable and receivable – saving us, and our clients, more time to help those they serve. We know that you care about your business just as much as we do ours.  This is why we value transparency and think it’s important that every client has the chance to understand how their finances are handled. So, if you’re curious how your bills are being paid and who works the magic of your cash-flow: we take care of it – through the use of Bill.com. While other firms are forced to outsource the different facets of billing and invoicing to multiple sites, or spend all day entering each item manually, at Affordable Bookkeeping and Payroll we help streamline the process for our clients by keeping everything in one place.  We do so with scheduled, hands-free, and automatic invoicing and billing all through Bill.com. As one of the few online accounting softwares capable of giving its user complete control over all aspects of billing, we use Bill.com to help our clients save hours of valuable time by scheduling automatic payments, sending automatic invoices and reminders (paper or digital), installing recurring customer payments, and more. Their format customizes for each client’s needs – accepting all forms of payment – and with the combination of our bookkeeping experts, by syncing Bill.com to our accounting software and your unique business needs, you can feel empowered with accurate, real-time cash-flow readings that are always up to date. With Bill.com, all documents and data are...
Exceptions to 1099 Filing Requirements

Exceptions to 1099 Filing Requirements

In the last post, I shared some basic information on who is subject to report, as well as who is subject to receive form 1099-MISC.  If you missed that post, you can find it here. There are exceptions to the rules listed in the prior post: Generally, payments to a corporation. But see Reportable payments to corporations, later. Payments for merchandise, telegrams, telephone, freight, storage, and similar items. Payments of rent to real estate agents. But the real estate agent must use Form 1099-MISC to report the rent paid over to the property owner. Wages paid to employees (These are reported on Form W-2, Wage and Tax Statement). Military differential wage payments made to employees while they are on active duty in the Armed Forces or other uniformed services (These are reported on Form W-2). Business travel allowances paid to employees (may be reportable on Form W-2). Payments to a tax-exempt organization including tax-exempt trusts (IRAs, HSAs, Archer MSAs, and Coverdell ESAs), the United States, a state, the District of Columbia, a U.S. possession, or a foreign government. Payments made with a credit card or payment card and certain other types of payments, including third party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC. There are additional exemptions, but since most small businesses don’t have these types of payments, I have excluded from this post.  If you’d like to see the full list of exemptions, the IRS rules can be found at http://www.irs.gov/pub/irs-pdf/i1099msc.pdf. The following payments made to corporations generally must be reported on...
Who Should Receive a 1099-Misc Form?

Who Should Receive a 1099-Misc Form?

Business owners are required to file 1099 forms for vendors if the purchases and those who have been paid fall into certain categories.  These forms are due to the recipient and the Internal Revenue Service by January 31. Many entrepreneurs are confused about to whom to issue forms, so this post will give information which will help you determine which vendors need to have the 1099-MISC form issued to them. Forms are issued for expenses paid in the course of doing business only.  You are engaged in a trade or business if you operate for gain or profit.  Do not include any amounts that would be paid personally.  For instance, if your business pays someone to do landscaping outside your office, that is a business expense and should be reported (if the vendor is subject) but a landscaper paid personally for working in your yard at home is not subject to receiving a 1099. Please also note that nonprofit organizations are considered to be engaged in a trade or business and are subject to these reporting requirements. Other organizations subject to these reporting requirements include trusts of qualified pension or profit-sharing plans of employers, certain organizations exempt from tax under section 501(c) or (d), farmers’ cooperatives that are exempt from tax under section 521, and widely held fixed investment trusts. Payments by federal, state, or local government agencies are also reportable. According to the IRS instructions, file Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year: At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments,...
How to Save Money on Bookkeeping

How to Save Money on Bookkeeping

If you’re currently working with a bookkeeper, but are looking to save money on your service fees, then we have a few tips to share with you. Our company has been assisting many small business owners for over 12 years. Over those years, we’ve been able to provide our clients with the best services and prices that fit their specific bookkeeping needs. In today’s post, we want to share 7 tips on what you can do to decrease your fees and help your bookkeeper streamline your bookkeeping process in order to perfectly fulfill your needs and budget. Send All Paperwork at One Time Paperwork that is sent in incomplete batches may result in an unnecessary lag time. Stopping tasks in progress to request missing paperwork creates a higher probability of mistakes and missed deadlines. You may find creating and following a check sheet to ensure all paperwork is sent is helpful. Send Time-sensitive Documents Early Although this tip applies to all bookkeeping, it can be more specifically applied to bill-pay services. It’s always best to forward all bills/statements consistently and ahead of time in order to process payments. Delayed paperwork can result in late fees, disconnected services, etc. If this isn’t a viable option contact your service providers and update your contact information to “in-care-of” your bookkeeper. Be Organized Avoid submitting your paperwork in a large box for your bookkeeper to sort through. You can simplify the process by creating a checklist of all the items that need to be given on a monthly basis and organizing statements and receipts by month. Provide all Necessary Details Providing details on...
QuickBooks: Desktop Vs. Online

QuickBooks: Desktop Vs. Online

We are often asked by our clients, “Which is better; QuickBooks Online or the desktop version?” Even though our company has our own personal opinion on which software if better, it’s important to find out how the varying functions of QuickBooks lines up with your bookkeeping needs in order to suggest which is best for you. In order to help you decide which one will best fit your needs, it is important to understand the pro’s and con’s of both. We hope this post can help aid you in making the best decision on how to reach the level of efficiency and functionality you require. To begin, if you are looking for the convenience of having access anytime and anywhere to your company’s books, the online version offers access for up to 25 simultaneous users while the desktop version does not. This of course does not mean that if you choose the desktop version you’re not able to access your data when you are on the go. By using a software such as LogMeIn, you are able to work on your file via remote access. We currently use this software with several of our clients with great success. If you are a retail establishment using QuickBooks Point of Sale, the desktop version would be a best option since the online version does not integrate with this software. However, when it comes to upgrades and technical support the only one that offers this at no additional cost is QuickBooks online. If you would like to use class tracking to see profitability by specific areas within your business, you are able...

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