Articles Archives | Page 6 of 7

QuickBooks Tips From A QuickBooks ProAdvisor

May 9, 2012/in Articles/by revel

QuickBooks is a powerful tool for tracking your businesses’ financial situation. The program is most effective if it’s set-up properly from the start. Below are some of the things our QuickBooks ProAdvisor, Scott Brewer, suggests you consider when configuring the program.

Questions to Ask Yourself

Are you going to invoice customers?
Are you going to track the bills you owe?
Do you collect sales tax?
Do you track inventory?
Do you accept credit cards?

This is just a small sampling of what needs to be considered when setting-up the program. How you answer these questions will help to determine how you configure QuickBooks. After the initial set-up is completed you’ll want to make sure you understand how to properly use the program and enter information.

Among other things, it’s important to remember entries need to be in the correct areas each time they are entered. “One of the most common mistakes I see,” said Brewer, “Is making changes to transactions for the prior year, after the tax returns have been filed.” To avoid this, he suggests setting a closing date, which can be done through the “Accounting Preferences” screen.

There are lots of great QuickBooks resources on the web. Our favorite is the Intuit Community forum.

Alternatively, if you’d prefer someone to help you, H&S Companies’ QuickBooks ProAdvisors can help! We’ll come to your business, walk you through the program, and help you get on the right track towards balanced books. Want to learn more? Contact Scott today.

Scott Brewer
616.735.3043
scottb@hscompanies.com

Social Security Wage Base Projected to Increase in 2013

May 8, 2012/in Articles/by revel

The Social Security Administration’s intermediate forecast for wage base increases through 2020

The Social Security Office of the Chief Actuary is projecting that the Social Security wage base will increase in 2013. Currently, wage earners are required to pay Social Security tax on wages earned up to $110,100. The base is expected to increase to $113,700 in 2013. The graph to the right shows the Social Security Administration’s intermediate forecast for wage base increases through 2020. Please keep in mind, these forecasts are subject to change because the actual annual increases are released each October for the upcoming year, and are based on economic conditions at the time.

Additionally, the Chief Actuary projected that Social Security will run out in 2033, rather than 2036, as previously expected. This conclusion is based on a number of factors including the aging baby boomers and the increase in life expectancy.

Case Study: Ex-Marriott Worker gets 1 year, 1 day in jail for embezzlement

April 25, 2012/in Articles, Fraud and Forensic Investigation, Locations & Services/by revel

Internal Controls can help prevent fraud from happening in your organization. (Photo Credit: office.microsoft.com)

A former Marriott International employee was sentenced to one year and one day in jail on Friday for embezzling money from the company, according to a story by Erica W. Morrison posted on Washington Post’s The Crime Scene blog

The employee, Lorraine Wakefield, 51, was able to embezzle $400,000 to $1,000,000 through her position of maintaining corporate credit card expenses, travel expenses, and reimbursements requests for Marriott executives.

This case serves as a good reminder of the measures all businesses should take to protect themselves. Even the most trusted of employees can commit a crime. Remember to have system of checks and balances in place to help prevent fraud from happening in your organization.

If you don’t have a system, or if you feel that the system you have is weak, a simple fraud risk assessment — performed by Kit Powell, Certified Fraud Examiner — will give you a detailed report with recommendations on how to strengthen internal controls to prevent fraudulent activity.

Contact Kit today to schedule an appointment for your fraud risk assessment via phone at 231.924.8035 or email at kitp@hscompanies.com.

Ex-Marriott worker gets 1 year, 1 day in jail for embezzlement

Personal Property Tax Legislation

April 23, 2012/in Articles/by revel

The State Senate has introduced a reform package for the Personal Property tax. (Photo Credit: office.microsoft.com)

On Tuesday, April 17, 2012, the State Senate introduced a reform package for the Personal Property tax. Over the next several weeks the State Senate Finance Committee will meet to review and discuss the plan. As the package currently stands, the following changes are being proposed:

Eliminate Michigan’s Personal Property tax for commercial and industrial businesses that have under $40,000 of taxable property in the same jurisdiction.
Properties that are in certain enterprise zones, as well as, technology park developments that qualify for an abatement, will still qualify for relief until they become exempt under this new plan.
Starting in 2015, “qualified new personal property” purchased after December 31, 2011, that meets the definition of “eligible manufacturing personal property”, will be exempt.
Also starting in 2015, qualified new personal property that is over 10 years old will be removed from the books. A seven year phase out will begin after 2015 to eliminate qualified industrial property purchased between 2005-2011.
Michigan’s Treasury will be instructed to create a Personal Property Tax Reimbursement Fund that will refund 81% of funds lost to local governmental units.

What do you think about the latest reform that has been proposed? Visit facebook.com/hscompanies to voice your opinion or ask questions for one of our tax professionals to answer.

Streamlining Business Systems to be More Effective

April 18, 2012/in Articles/by revel

Is your system streamlined? Enterprise Resource Planning can help get your whole team on the same page. (Photo Credit: office.microsoft.com)

The IT Systems Engineers at H&S are frequently asked by business owners how best to integrate their multiple systems into one streamlined process. They’re concerned because, for example, their accounting department has some customer information in one set of spreadsheets and programs, and their warehouse has it another. No one has a full view of the customer’s situation because their data is stored in a variety of programs.

Enterprise Resource Planning (ERP) is an effective way to integrate multiple systems into one streamlined process. It allows accounts receivable to see how much a customer owes, while the warehouse is able to see what needs to be shipped to that same customer from the same program. And should the customer call, the call center is able to access the same information as accounting and the warehouse, so they are able to answer questions with information updated in real-time.

ERP can only work, however, if the organization and their employees are dedicated to changing the way they do business. The system can never work if the warehouse still keeps inventory in their old excel file or if the Customer Service Representatives don’t document phone calls in the new program. To learn more, read the article Enterprise Resource Planning By Tim Nass , IT Systems Engineer, in our April newsletter, or contact Tim at 616.735.3054.

Click image to view April newsletter

House and Senate Leaders Have Reached an Agreement on the Extension of the Payroll Tax Cut

February 16, 2012/in Articles/by revel

The Associated Press reported the House and Senate have reached an agreement on the extension of the payroll tax cut. According to the article, the measure will cost about $150 billion and will continue a 2% cut in the Social Security payroll tax, renew unemployment benefits, and prevent cuts in Medicare reimbursements for doctors. To read the full article click here.

Source: House Senate Deal Reached on Payroll Tax Measure, The Associated Press via Boston.com

New Rules for the Power of Attorney and Declaration of Representative Form

February 10, 2012/in Articles/by revel

As of March 1, 2012, there are new rules in effect regarding Form 2848, Power of Attorney and Declaration of Representative. Married couples will now need to file separate forms designating their Power of Attorney – even if they are selecting the same person. If a married couple has Form 2848 on file prior to the March 1^st deadline, they do not need to refile with separate forms.

State of Michigan 2012 Rate Determinations

February 6, 2012/in Articles/by revel

On December 19, 2011 Governor Rick Snyder signed legislation to deal with Michigan’s bankrupt unemployment insurance system. Part of this legislation allowed for the State of Michigan to retire the Federal debt and issue $3.323 billion in revenue bonds, which they did on December 28, 2011. By refinancing the debt, the FUTA credit reduction was reset to zero in 2012.

There are a couple of key changes you will want to keep in mind. The Obligation Assessment will be applied on all contributing employers, not just those with a negative balance like the previous solvency rate, until the bonds are repaid. The bonds are on a 10-year repayment schedule. The Obligation Assessment will be reported as a line item on Form UIA 1771, Tax Rate Determination for Calendar Year 2012. This new assessment will be determined on an annual basis and included on your annual Tax Rate Determination.

Also, effective in 2012, the taxable wage base will increase from $9000 to $9500 until the Unemployment Trust Fund reaches $2.5 billion. The base will go back to $9000 if the fund balance can remain at $2.5 billion (net of benefits paid) for two consecutive quarters.

If you have any questions or would like further explanation on this matter please contact your H&S tax professional.

Did you know…?

January 25, 2012/in Articles/by revel

According to a recent report released by Nina E. Olson, National Taxpayer Advocate, between 2001 and 2010 there were approximately 4,430 changes to the tax code – that’s an average of more than one per day!

The tax professionals at H&S work hard to stay current on changing tax legislation so you can feel confident when you file your tax return. Schedule an appointment today to have your 2011 tax return completed by your core team of tax professionals.

To view Olson’s full report visit https://taxpayeradvocate.irs.gov/2011-annual-report-to-congress

HR Consulting Now Available Through H&S Companies

December 28, 2011/in Articles/by revel

By: Travis Sinquefield
H&S Companies is pleased to announce that we now offer human resources (HR) consulting to our clients. We offer HR system audits, performance and talent management systems, hiring and on-board systems, record-keeping and compliance solutions and advice, retirement and benefit consulting, and general HR consulting services. We are committed to providing a solution tat solves your complex human resource problems and needs.
As an HR consultant, I receive a variety of questions from clients concerning the HR function within the organization. Most of these questions come from small business owners who are trying to understand the myriad of laws and regulations they must follow concerning record keeping and employee management. New laws and rulings come out on a daily basis, and it can be a full-time job just to keep track of the changes that occur within the HR landscape. The most common questions I am asked include: “What laws and regulations are applicable to my business? Does the Family Medical Leave Act apply to my business? What about the Equal Opportunity Employment Act? What am I required to keep in my employee files? And how long do I keep it?”
There are many questions and issues that arise when looking at the HR needs of an organization. For many of these questions, however, the answer varies based upon the business. Even a law such as FMLA may or may not apply to your company, even if you have 50 or more employees. In addition, each company has its own culture, policies and procedures that have a profound impact on the effectiveness of the organization.
A comprehensive HR system will not only fulfill your compliance and legal requirements, but also foster and develop a strong, efficient workforce that allows your business to grow. Many business owners are concerned about the complexities of HR systems but they do not need to be cumbersome as long as they are designed to meet the unique needs of your organization. If you need help navigating the world of human resources, please contact H&S Companies and we’ll develop a solution that fits your business needs.
Need help developing your HR strategy? Please contact Travis Sinquefield at 616-884-7946.