Cash Accounting No Longer An Option?

Big Government Wants All Small Businesses To Post the Cash -

                                                             Before They Even Collect It

On July 10^th, a subcommittee of the House of Representatives' Committee on Small Business held a hearing to discuss the merits of using cash basis of accounting in small businesses, and whether small businesses should be required to use the accrual basis.

What does this mean for you? This would only be a one year windfall for the IRS, but an ongoing headache for most small businesses.

Most business owners think in terms of "cash in" and "cash out," especially when starting a new business venture. This means that you claim the income when payment is received, and claim the expense when it is paid. Accrual accounting claims the income when the invoice is created and the expense when a bill is received from a vendor. This potentially creates a tax liability for small businesses.

For example, let's say that your business invoices a client on December 31 for a very large job that is a significant part of their annual revenue. The client has a history of paying after 90 days. Using the cash basis, the client is invoiced on December 31st, the income is not taxable until the payment is received. With the accrual basis, the income becomes taxable on the date of the invoice (December 31.) This could create a financial hardship for your business if the payment is not received from your client until April 1 or later after taxes are due.

Owning a small business is hard enough without the complication of forcing business owners to spend more time on bookkeeping and taking time away from generating revenue.

QuickBooks Mobile will be discontinued effective July 31, 2014

from Intuit

The mobile app for QuickBooks Desktop (QuickBooks for Windows Mobile Companion App) will be discontinued effective July 31, 2014

Why are we discontinuing this app?

It is always a hard decision to discontinue a service on which our customers have come to rely and we've also heard from many business owners about the importance of managing their business on the go. To better support this need, we are focusing our mobile efforts on QuickBooks Online. Our renewed focus is to make sure we grow with you into the future.

What are the options for you?

You can stay on your current QuickBooks desktop software; however, mobile service through this app will be discontinued. If you've enjoyed the ability to access books through the mobile app, you can still enjoy the same benefits of working on the go with QuickBooks Online.

Before you rush and move over to QuickBooks Online (QBO) for mobile connectivity, it is essential you understand this CRITICAL point:

*   QBO and QuickBooks desktop software (QBD) are VERY different versions of QuickBooks.

Do a full evaluation of the QBO option via the free trial and then decide if it makes sense to completely move your business operations to that platform. 

If you want to stay on the desktop version of QuickBooks (QBD), know that you can also consider having it hosted for 24/7 access to QuickBooks from any device as well.

If you have any questions, give us a call.

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