Ask the Quickbooks Experts: Online vs. Desktop Editions?

Our team of QuickBooks ProAdvisors is frequently asked the same question, “Which version is right for me – the online or the desktop edition?”  The answer usually depends on your business, lifestyle and needs.  Below, we created an easy comparison based on our tried-and-true experiences. 

Round 1:  Cost

• The online edition is available for a low fixed cost per month beginning at $12.95 per month.
• The desktop edition is available for an affordable, one-time purchase price.

Winner? We really think it’s a toss-up.  Depending on your needs, both are affordable options.

Round 2:  Reports

• This online edition gives you the ability to view reports almost anywhere and at any time but the report offering is limited.  
• The robust reporting that the desktop version offers gives you the ability to turn almost any report into a visual graph or pie-chart. 

Winner?  The desktop version takes the cake for us thanks to its visual reporting elements.

Round 3:  Modules

• The online version supports simple accounting and but isn’t able to support the more complex modules.
• Only the desktop version allows users to manage purchase and sales orders, progress billing or job costing/work orders.  Additionally, the desktop edition gives you the ability to pay your bills using the QuickBooks Bill Pay Service.

Winner?  The desktop version wins another round with its additional capabilities that create greater efficiency.

Round 4:  Access

• The online version is available anywhere you have an internet connection and is convenient for those clients who travel frequently or have numerous locations.
• You can access the desktop version only on computers in which you have installed the program.

Winner?  The online version creates maximum convenience and efficiency when it comes to having access when needed.

Round 5:  Data Back-up

• With the online edition your files are secure, updated automatically and backed-up without any additional steps on your end.
• The desktop version requires you to have a back-up process in place and usually requires additional steps on your end.

Winner?  The online version offers the most efficient back-up process.

A Day in the Life of a Bergan Paulsen Accountant - Pt. 2

From Gary Wilgenbusch, Staff Accountant 

Read more about Gary on our website.

If I had to sum up a typical day at Bergan Paulsen in three words, I would say; exercise, entries and engagement.

I always start my day by exercising my right to coffee.  And the best part is that at Bergan Paulsen, you have so many choices based on how much additional help you need in staying awake – decaf, regular and Starbucks are always available for the taking.

Once I have the coffee decision taken care of, I review my emails, voicemails and any current work in progress and begin prioritizing!  My work for the day will vary depending on the time of year but generally is a combination of assisting clients with posting journal entries, entering clients’ book updates – typically in Quickbooks – and preparing tax returns for any combination of C-Corporations, S-Corporations, Partnerships and individuals.

I also work on the audit engagement team and at times may need to visit a clients’ office for a few days at a time.  It’s during these days that I leave my business casual dress at home and “suit up!”  Bergan Paulsen strives to always give their clients MORE – even if that means a MORE professional looking staff accountant!

Each week, I am afforded the opportunity to work with peers, managers and partners.  I enjoy working at Bergan Paulsen because it gives me a great opportunity to learn while working closely with all of these levels of talent.

Read the first part of this series by clicking here.

A Day in the Life of a Bergan Paulsen Accountant - Pt. 1

From a Staff Accountant in the Cedar Rapids Office

I would use three words to sum up my role at Bergan Paulsen; caffeine, crunch, collaborate.

I usually start my day off around 8:10 in the break room by filling up my coffee.  If it’s a Friday, I might even grab a donut from our Friday treat selection – predetermined by the workout that I had the night before!

Once I get the right Pandora station tuned in, I sip my coffee and begin inputting my time into our time tracking system.  Although this can be quite monotonous, it’s a nice way to get the day started.  In other words, I try to ease myself into the crunch portion of the day.

After checking my email for updates and reading the CPA Letter Daily, I review my project list and get started.  Most projects require the crunching of numbers that you expect when you sign up for accounting work but the great thing about Bergan Paulsen is that there is plenty of opportunities to collaborate with team members on all levels.  Not only do I get to work with a mentor on a regular basis but I am also able to work alongside both peers and partners.  

Our lunch hours are typically flexible based on the project load and time of year.  During tax season, I will take minimal time and sometimes just eat at my desk.  Throughout the “off season,” however, I often utilize the flexibility to run errands or even head home to get a few things accomplished! 

In addition to my role as staff accountant, I also serve on the firm’s Fun Committee.  This role has allowed me to get to know the people I work with through various events such as the recent Iowa vs. Iowa State tailgate that we held.  

My typical day ends when I stop in and talk to Terri – our friendly front desk receptionist.  I always let her know that I will be gone for the rest of the afternoon so she is able to direct client calls accordingly.  It’s this kind of friendly collaboration that makes working at Bergan Paulsen great.  We are all focused on the same end goal – giving our clients MORE!

Read part two of this series by clicking here.

FASB Changing Disclosures by Entities Participating in Multiemployer Pension Plans.

Recently, the Financial Accounting Standards Board announced that it had approved revisions to the proposed Accounting Standards Update (ASU), Compensation -- Retirement Benefits -- Multiemployer Plans (Subtopic 715-80): Disclosure about an Employer’s Participation in a Multiemployer Plan. The proposed ASU and the FASB’s related revisions are intended to provide more information about an employer’s financial obligations to multiemployer pension plans. Multiemployer pension plans are commonly used by an employer to provide benefits to union employees who may work for many employers during their working life, in order to enable them to accrue benefits in a single pension plan.

Currently, employers are required to disclose only their total contributions to all multiemployer plans in which they participate.

The new disclosures announced by the FASB include:

• The amount of employer contributions made to each significant plan and to all plans in the aggregate;
• An indication of whether the employer’s contributions represent more than 5% of total contributions to the plan;
• An indication of which plans, if any, are subject to a funding improvement plan;
• The expiration date(s) of collective bargaining agreement(s) and any minimum funding arrangements;
• A description of the nature and effect of any changes affecting comparability for each period in which a statement of income is presented; and
• The most recent certified funded status of the plan, as determined by the plan’s so-called “zone status,” which is required by the Pension Protection Act of 2006.

If the zone status is not available, an employer will be required to disclose whether the plan is: (a) less than 65% funded; (b) between 65% and 80% funded; or (c) greater than 80% funded.

The FASB expects that the revisions will be finalized and added to the Codification in September 2011. For public entities, the enhanced disclosures will be required in fiscal years ending after December 15, 2011. For nonpublic entities, the enhanced disclosures will be required in fiscal years ending after December 15, 2012.

Asset-Based Financing 101

Once considered financing of last resort, asset-based lending and factoring have become popular choices for companies that do not have the credit rating or track record to qualify for more traditional types of financing.

In general terms, asset-based lending is any kind of borrowing secured by an asset of the company. For our discussion purposes today, we will consider asset-based lending to mean loans to businesses that are secured by trade accounts receivable or inventory.

 

Because asset-based lenders focus on collateral, rather than credit-worthiness, they do deals that more traditional lenders shy away from. Borrowers put up equipment, inventory, accounts-receivable and other liquid assets in exchange for the money. Asset-based lenders that are either nonbanks or separate subsidiaries of banks are not subject to such constraints. This gives asset-based lenders the freedom to finance thinly capitalized companies.

Your Guide to Asset-Based Lending Terms

• A revolver is a secured line of credit. The granting of the security interest to the lender creates a borrowing base for the loan. As receivables are collected, the money is used to pay down the loan balance.
• A “lockbox” or a “blocked account” is established by the lender for the receipt of collections of the accounts receivable. The company’s customers are instructed to pay their accounts to the lockbox, and the lender pays down the loan with these funds.
• Eligible inventory includes finished goods and marketable raw materials and excludes work-in-process and slow-moving goods. There could be additional limits on the advance rate for specially manufactured goods that can only be sold to a specific customer.
•  Purchase order financing can be used by companies that receive an unusually large order. The credit grantor accepts the purchase order from the company’s customer as collateral for the loan.
• Factoring is a financial transaction whereby a business sells its accounts receivable to a third party, the factor, at a discount to obtain cash. Factoring differs from a bank loan in three ways: (1) The emphasis is on the value of the receivables, not the borrower’s creditworthiness; (2) factoring is not a loan—it is the purchase of the receivable; and (3) a bank loan involves two parties whereas factoring involves three.

Tax Tip: Charitable Giving

Most of us know that if you make a donation to a charity, you may be able to take a deduction for it on your tax return. What we don’t all know is how do we go about doing that and what should we know before we take the deduction?

Here are the top nine things the IRS wants every taxpayer to know before deducting charitable donations.

1. Make sure the organization qualifies. Charitable contributions must be made to qualified organizations to be deductible. You can ask any organization whether it is a qualified organization or check IRS Publication 78, Cumulative List of Organizations.

2. You must itemize. Charitable contributions are deductible only if you itemize deductions using Form 1040, Schedule A.

3. What you can deduct. You generally can deduct your cash contributions and the fair market value of most property you donate to a qualified organization. Special rules apply to several types of donated property, including clothing or household items, cars and boats.

4. When you receive something in return. If your contribution entitles you to receive merchandise, goods, or services in return - such as admission to a charity banquet or sporting event - you can deduct only the amount that exceeds the fair market value of the benefit received.

5. Recordkeeping. Keep good records of any contribution you make, regardless of the amount. For any cash contribution, you must maintain a record of the contribution, such as a cancelled check, bank or credit card statement, deduction record or a written statement from the charity containing the date and amount of the contribution and the name of the organization.

6. Pledges and payments. Only contributions actually made during the tax year are deductible. For example, if you pledged $500 in September but paid the charity only $200 by Dec. 31, you can only deduct $200.

7. Donations made near the end of the year. Include credit card charges and payments by check in the year you give them to the charity, even though you may not pay the credit card bill or have your bank account debited until the next year.

8. Large donations. For any contribution of $250 or more, you need more than a bank record. You must have a written acknowledgment from the organization. It must include the amount of cash and say whether the organization provided any goods or services in exchange for the gift. If you donated property, the acknowledgment must include a description of the items and a good faith estimate of its value. For items valued at $500 or more you must complete a Form 8283, Noncash Charitable Contributions, and attach the form to your return. If you claim a deduction for a contribution of noncash property worth more than $5,000, you generally must obtain an appraisal and complete Section B of Form 8283 with your return.

9. Tax Exemption Revoked. Approximately 275,000 organizations automatically lost their tax exempt status recently because they did not file required annual reports for three consecutive years, as required by law. Donations made prior to an organization's automatic revocation remain tax-deductible. Going forward, however, organizations that are on the auto-revocation list that do not receive reinstatement are no longer eligible to receive tax deductible contributions.