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Smith Office Solutions Newsletter
August 2012
In This Issue
Important Dates
Save Your Business
In the Spotlight - MediPro Direct Slim
Cash Flow Statements
Equipment - Purchase or Lease?
Tip of the Month
Important Dates
Aug 15 P/R Tax Dep Due

Sept 3  Labor Day
Sept 14 P/R Tax Dep Due

Oct 15 P/R Tax Dep Due
Oct 31 Qtr 3 941 & OQ Due

Want to see more?


MediPro Direct SLIM logo
We're more than a weight loss clinic - we're a lifestyle solution.

Spotlight Company

Join us in the Cloud


Check with us for the current promotion!

View our profile on LinkedIn



Can you believe summer is already over half gone?  Many people use August as their vacation time.  It has been cool summer so far, but they say August will be August with its very hot weather.


Smith Office Solutions wants to help with a few ideas as to what you can do in QuickBooks to beef up its security.


Since this month is going to be hot, people are taking vacations and we all want to look good in a bathing suit, right? We thought we would Spotlight a local company called MediPro Direct Slim.  See more about this company in the article below.  I haven't tried any programs yet, but it looks really good.  I think I may just have to try it out this month. 


We included some information on Cash Flow Statements which are usually part of the financial statements.  This allows you to know where you money comes from & where it goes.


Are you thinking about leasing or considering a large equipment purchase? You might want to read the article on Purchase vs Leasing.
Let us know if there are any ways that we can better meet your company's needs.  Smith Office Solutions is focused on helping your business succeed.




Save Your Business QuickBooks Style


  • Each person should have their own login
    • This is in the Company menu
    • Only the Admin can do this function
    • It is good idea to make the business owner be the Admin.  What happens it you have to fire the bookkeeper?
    • By the way, the default name for the user is Admin. Even if you created a name, you can always use Admin.
    • In order to make this work, you need to decide what each person does.  The more the access they have the more trouble they can get into.
    • At the end there are questions about changing & deleting transactions and info.  You may want to ask us about this.  The Admin should probably be the only one to be able to make changes after the books have been closed ie. closing date.
  • The year should be protected when the taxes have sent off to be prepared. 
    • You do this with a password and a closing date. 
    • You can do this either where you add users or in the Accounting preferences
    • If you have an outside accountant you probably should make their login be External Accountant.  Reasons are as follows:
      • There are special tools that will be unlocked for them
      • They will not be able to see customer VISA numbers
      • They can not use the merchant services or fix invoices.  Remember if the records are done correctly the tax person does not have to fix any of the invoices.
    • There is a Closing Day Exception Report under Accountant reports.  This will show anything changed after the closing date.
  • There is always the Audit Report too.  It shows the trail of the transactions as they change. 
    • The top entry is the newest. 
    • It shows the date, time and person that made the changes.
    • This is one reason why individual logins are so important.
  • There is a Voided/Deleted report also
  • Written procedures are important because in accounting consistency is very important.  Sometimes the setup of QuickBooks may seem a little odd but the every day work should be the same day to day.
  • Don't forget your backups.  QuickBooks does offer Data Protection which will backup you computer on a consistent schedule and it back it up offsite in case of a fire.  You probably should back it up on you own equipment maybe weekly or monthly depending on the volume.  Add the verify part to the back up because otherwise you may back up bad data.
  • Contact us if want to set passwords on Enterprise, it is a whole another case.


For help on any of this, email 

In the Spotlight...MediPro Direct Slim


Our Passion,Your Life

Our company is passionate about holistic change in people's lives. We believe in empowering our patients through:


A proven, effective physician-based weight-loss program
Individualized, customized program management
Training on how to work with the body/brain to create and maintain weight-loss
On-going communication and support for long term success



How Our Program Works:

Options for a Slim New Lifestyle


Lipotropic Rebalancing Program - The Lipotropic Rebalancing program utilizes a whole foods diet along with lipotropic injections to aid the body in regaining metabolic balance and return to its normal fat burning ability. Our program helps our clients understand how the foods that they eat affect their bodies' fat burning ability and how Leptin, a hormone released from body fat, reduces appetite, stimulates fat burning, and communicates your nutritional condition to your body and brain. The goal of the Lipotropic Rebalancing program is to overcome leptin resistance through a whole foods diet and exercise plan.

Our clients have lost weight and often reported improved energy and attitude through our Lipotropic Rebalancing program. They have learned how to work with their improved mental and physical connection to successfully keep the weight off.

You too can increase your self-confidence and personal power through knowing that you are making the right decisions daily. Those decisions, which our program makes clear and simple, have the capacity to produce holistic change in your life. That's what our passionate, dedicated professionals are able to help you with, and we can do it better than anyone.

*The following disclaimer is required by the FDA: These statements have not been evaluated by the FDA. These products are not intended to diagnose, treat, cure, or prevent any disease.


Genetic Weight Management - This science-based product provides dietitians, nutritionists and healthcare professionals with customized, actionable genetic insight. By identifying your specific genotype, diet and exercise results can be optimized. Click here to read more about Genetic Weight Management. 


Optimal Wellness Services - These programs are designed for those who are not satisfied with simply "good enough" and are looking for optimal health and wellness. MediPro Direct Slim has been through it all and knows health management is made easier when support and encouragement is present. Our plans offer evaluation and testing, monitoring and change, as well as validation and lifestyle maintenance. Click here to read more about Optimal Wellness Services. 


Ideal Protein Weight Loss Method - The Ideal Protein Weight Loss Method is an easy 4-phase protocol which helps stabilize the pancreas and blood sugar levels while burning fat and maintaining muscle and other lean tissue. This protocol is also an excellent support for cellulite reduction and has been used in well over 2,500 Professional Establishments in North America over the last eight years with great success. Click here to read more about the Ideal Protein Program. 


Visit the MediPro Direct Slim website to learn more about this fantastic company and get your free phone consultation today! 


If you are interested in having your company logo and website featured, let us know.  You can send an e-mail  to with your website address, short description of your service or product, and your logo, as a JPG. 


If you have a suggestion for a Spotlight Company we would love to hear it.  Just give us a short description of the company and why you think they deserve the "spotlight."

Cash Flow Statements



There are four main financial statements you need in order to successfully manage your business.

  1. The Balance Sheet
  2. Income Statement (Or Profit & Loss)
  3. Cash Flow Statement
  4. Statement Of Stockholders' Equity


In this article we will cover only the Cash Flow Statement, which can also be referred to as the Statement Of Cash Flows.



What is a Cash Flow Statement?


A cash flow statement is a report that shows the cash that flows into and out of your company during a specific defined time period. On the statement, "cash" is defined as both actual cash and cash equivalents such as highly liquid investments, money market funds, or other interest-bearing assets that can be quickly and easily be converted to cash. Since these types of assets are equivalent to cash, they are included with cash on the statement.

A simple statement of cash flows can be generated from:

  1. The company's net income or loss
  2. Changes in each balance sheet account
  3. Dividends paid to stockholders

A full fledged statement will show more detail and be of greater use to you as a business owner. For a Cash Flow Statement the Financial Accounting Standards Board requires that the statement be divided into three sections: operating activities, investing activities, and financing activities.

  • Operating activities are activities that affect current assets and liabilities or net income (loss). This section also includes changes in noncurrent accounts that directly affect net income, such as accumulated depreciation and amortization.
  • Investing activities include transactions like buying or selling property and equipment, acquiring or selling stocks and bonds held for long term investment, and lending and collection of money loaned out to another. Exceptions to this are any transactions that directly affect net income, which are classified under operating activities.
  • Financing activities are generally defined as transactions with the company's owners and borrowing or repaying creditors. As above, transactions that affect net income are included with operating activities. For example, interest paid on the company's debt would be included in operating activities because it is an expense used in calculating net income. On the other hand, dividends paid to the owners do not affect net income so it is classified as a financing activity.

Why is it important?


A simple Statement of Cash flows can help a small business owner get a basic idea of the cash coming in and going out, but it is not detailed enough as an external financial report. In order to make more informed decisions about your business, or if you are seeking new areas of funding, you need to generate a full statement of cash flows.

Why can't I just use the standard Income Statement? If the income statement is prepared using an accrual basis of accounting, the reported revenues may not have been actually collected yet, and reported expenses might not have been paid. You could review changes to the balance sheet to find out the facts, but the cash flow statement has already taken that information into account. Knowledgeable business owners, and investors, knowing this information, use this important financial statement instead to get a more informed look at their company.


How is the statement of cash flows generally used?


The Statement of Cash Flows compares the cash from operations to the company's net income. It is important when reviewing a statement of cash flows to look at the net cash provided by operating activities. This number can show how well the company does at generating cash on a continuous basis.   If the number is negative, there may be problems with how the business is being managed. A positive number is needed if you want to avoid having to borrow money to stay in business.

Some investors believe that "cash is king". The cash flow statement identifies the ways that cash flows in and out of the company. If a company is consistently generating more cash than it is using, the company may be able to increase dividend payments, buy back some of its own stock, reduce debts that the company may have, or possibly acquire another company or location. All of these are perceived to be good for stockholder value.


Smith Office Solutions can prepare cash flow statements for your company, as well as other financial reports your company needs to be successful. Preparation of monthly financial reports is included in the higher levels of our bookkeeping services. In addition, our Part-Time Controller service includes an initial comprehensive review of cash flows, regular review thereafter, and assistance in implementing measures to reduce operating costs to help your company become more desirable to investors in the future. Give us a call at 503-579-8059 and let us show you how to keep more of your company's money flowing in, not out.



Is it better to purchase business equipment or lease it?


On a month to month basis, leasing expensive office equipment can be more affordable, but the overall cost will be higher. Buying the equipment outright can be a large initial expense and might not be the best option either. Which should you choose?


From heavy office machinery to the more common office electronics, every business will need some kind of office equipment, and paying for it can become costly. Most small companies have concerns about cash flow that make purchasing equipment outright out of the question. The option to lease equipment or take out a loan will spread payments out over time. There are advantages with each method. You should compare both options each time your business needs to acquire equipment or machinery; sometimes one method will give a better result for your company than the other.


The obvious downside to leasing is that the final cost of the equipment is generally higher. Despite this however, there are good reasons for leasing equipment.


  • Leasing may be a good option for electronics, such as computers, that will become obsolete before reaching the end of their usable life. A lease agreement allows you to trade in your equipment at the end for a more up-to-date, newer model. You won't get stuck with outdated equipment with no chance of recouping your initial cost.
  • There is generally no down payment required on a lease agreement. Lease payments may also qualify as a business expense write-off on your taxes (consult your CPA or tax professional).


Remember to keep in mind the length of the lease term. If circumstances for your business change and you need new or different equipment, you could end up paying a large early termination fee for breaking the lease.   Generally, if there is a good chance of obsolescence and you plan to use the equipment for no more than five years, leasing is a pretty good option.


For equipment that holds its value fairly well, and you plan to use for more than five years, consider purchasing. This is especially true for fixed assets, land, or other things that will gain in value over time. Equity is built when you pay down a purchase loan for an asset, and assets that appreciate in value over the long-term lead to wealth creation, benefits sacrificed when leasing equipment.


  • When your business needs change, selling or trading the equipment is much easier, and the equipment can be customized to suit your company's needs.
  • A down payment is usually required for a purchase loan and can be 20 percent or more of the purchase price. Since the upfront costs are higher, purchasing may not be an option for everyone, but if you can afford it, your long-terms costs can be much lower than leasing.

Some of the risks involved in buying your equipment outright need to be considered when making your decision. If the equipment needs to be replaced or becomes obsolete, or the land or assets decline in value, you could end up owing more on the loan than the asset is worth.


There are advantages and disadvantages to both leasing and purchasing expensive office equipment.   Carefully consider the expected length of use, tax implications, as well as cash flow when making a decision on how fund and acquire new equipment.   Smith Office Solutions can help you determine the cost effectiveness of both approaches and help you with the option that meets your needs.






QuickBooks Tips
QuickBooks Logo 

Smith Office Solutions recommends setting up each employee who needs access to your QuickBooks file with their own user name and permissions.  Only the Administrator has the ability to set up users, customize the areas of QuickBooks and level of access for each user. Those areas include:

  • Sales & Accounts Receivable
  • Entering & Accounts Payable
  • Checking & Credit Card accounts
  • Inventory
  • Time Tracking
  • Payroll
  • Sensitive Accounting Activities (online banking, transfer funds & journal entries)
  • Sensitive Financial Reporting
  • Changing & Deleting transactions in
    • Permitted areas and/or
    • Closed Periods


Before setting up a new user, determine what level of access you want your employee to have in each area. You have the option of limiting access for transactions to viewing transactions already entered, allowing them to enter new transactions, and the ability to edit previous transactions. Further customization includes placing limits on the ability to view and print various reports offered in QuickBooks.


Your QuickBooks license only limits the total number of users who can access the file at the same time, not the total number of user names.

Our main services are to help small to medium size business' become more successful in the accounting needs whatever that means to them.
Meredith & Amanda
Smith Office Solutions