I was recently asked to compile a list of information needed prior to terminating a bookkeeper.Â I’ve compiled a list of things that you may need to retrieve from your bookkeeper, controller, or office manager below.
Even if you have no plans to terminate, pretend like you are firing your bookkeeper or controller and start getting access to anything you currently don’t have access to or cannot easily obtain without the help of the person you are terminating.Â It’s important to have control over this information.Â What happens if the office manager gets hit by a bus tomorrow?Â Your business needs to keep humming along regardless of who is sitting in the bookkeeper/office manager/controller chair.
Termination Retrieval Checklist
The difficult economic climate of recent years has led more businesses to utilize barter transactions, in which they trade their products and services for other products and services. Many businesses wrongly assume they don’t need to account for these transactions. Accounting for bartering transactions is required by the IRS and is essential to accurately determining the financial health of your business.
When you barter for other goods and services, you are still investing time and resources to sell the item you are trading. You are simply receiving a commodity other than cash in exchange for your product or service. Not accounting for barter transactions is equivalent to not accounting for revenue and expenses. It’s impossible to determine how well your business is doing if you can’t generate accurate financial statements.
Recording these transactions is quite simple if you break them down into individual pieces. When you barter, two transactions occur: 1) you sell something and 2) you buy something. The most confusing factor can be determining the value of the transaction. IRS guidelines dictate that you must value the transaction at the fair market value of the item you are receiving. In most cases, the fair market value is already known-it’s the normal sale price of the item. The sale of your goods or services is valued at the purchase price of the goods you are receiving.
It’s time to start preparing 2009 1099 forms. Every year the question arises: Who gets a 1099?
For the complete answer, see: http://www.irs.gov/pub/irs-pdf/i1099msc.pdf
In general, service providers you have paid $600 or more in 2009 need to be issued a 1099.Â Service providers include: independent contractors, accountants, public relations firms, janitorial services, etc.Â Payments to service providers are reported in box 7, non-employee compensation. Sales commissions paid to non-employees are also reported in box 7.Â This does depend on the type of entity you paid:
- Sole proprietors, partnerships, and LLC’s taxed as sole proprietors or partnerships DO get a 1099.
- C Corporations, S Corporations, and LLC’s taxed as C or S Corporations DO NOT need to be issued a 1099.
There are a couple of ways to handle customer deposits in QuickBooks.
Method 1: Receive Payment Without Applying to an Invoice
If the customer hands you a check you, can simply receive the payment without applying it to an invoice. This will create a credit on their account. While this method will allow you to apply the credit to the project invoice, it usually isnâ€™t the best way to handle the situation.
I think employee bonus programs are fantastic and every business should have one.Â I also think poorly designed bonus programs are bad for business.Â What I see, more often than not, are discretionary bonuses that are paid annually, usually around Christmas.
Hereâ€™s the main thing I cannot stand about the traditional Christmas bonus program: Employees who EXPECT a bonus.Â To me, a bonus is, well, a bonus.Â Bonuses are given to those who deserve them.Â But, the problem is not with the employees.Â Most of the time, theyâ€™ve just been conditioned (like Pavlovâ€™s dog) to receive a bonus once a year whether they deserve it or not.
How do you set up a program that works for your business?Â It depends on your business, of course, but here are some things to consider: (more…)