November 2016 - Anders CPA

November 29, 2016

QuickBooks Tips & Tricks for Non-Accountants

QuickBooks® is an important accounting management tool used by small businesses and startups to track and project the financial health of their company. Accurate and up-to-date financial statements are vital to making day-to-day decisions and developing a long term strategy for future growth. To help make your accounting processes more efficient using QuickBooks, we’ve compiled a few tips and tricks:

Accountant’s Review Copies are not always necessary:

  • Starting in the QuickBooks (QB) 2013 Desktop version, accountants can send journal entries back to clients for them to import into their files. This eliminates manual entries for the client.  This is especially helpful for backups and portable files.

Using the +/- buttons to change the date:

  • Use the + button to change to the next day and the – button to change to the day before. This works in both QuickBooks Online and QB Desktop.
  • In the Desktop version, the +/- button will also change check and invoice numbers.
  • If you would like to go to the first day of the year type Y in the date field. If you want the last day of the year, type R in the date field.  This works the same for months and weeks.  Just type M to go to the beginning of the month and H for the end.  W for beginning of the week and K for the end of the week.

The amount field contains a built-in calculator:

  • In any amount field, type the numbers and functions (+,-,*, or /) and QB will calculate the amount for you. Just hit enter or tab when you have finished your calculation.  No need to have a separate calculator!

Using Class Tracking:

  • Class Tracking is helpful if you have multiple locations, sales reps, divisions, etc. and would like to run your financials based on these classes to see how each is doing.

Memorized Reports:

  • If you run a certain report often, it may be helpful to save it to your Memorized Reports list for easy access. Just run the report with all of the necessary customizations and hit the Memorize Button at the top of the report screen.  QB will then ask you what group you would like to save it to, or you can create a new group.

Memorized Transactions:

  • If there is a certain entry you make frequently, you can prepare the entry as normal and then hit Memorize. Then QB will ask you if you want to automate the transaction (helpful if the amounts are the same each time), if you want to be reminded, or neither of those.  The transaction can then be found under Lists- Memorized Transactions.

If you need help with your QuickBooks files, Anders is here to help.  We offer one-on-one training sessions, QuickBooks setup, and file cleanup services.  We can help you use your QuickBooks file to its fullest potential so you can get back to more important things, like running your business! Contact an Anders advisor to learn more, or read more about our Outsourced Accounting and Startup Services.

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November 29, 2016

Assisted Missouri Manufacturer in Securing $3.5 Million in Tax Incentives

Due to our familiarity with the Missouri Works program and the Chapter 100 Bond process, we assisted a Missouri-based manufacturer contemplating systematic plant expansion, equipment purchases and job additions in the procurement of state, city and local tax incentives in excess of $3.5 million.

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November 22, 2016

Instructional Classes Now Exempt from Missouri Sales Tax

A long unpopular policy in Missouri applies sales tax to admissions to instructional classes, such as dance, fitness, and yoga classes. For several years, lawmakers have been working to change this, arguing, in part, that it discourages physical fitness, which the state should instead encourage. As of September 15th, 2016 the policy has officially changed to make instructional classes exempt from Missouri sales tax.

Under the previous law, charges and fees at places of recreation are subject to sales tax if they offered a “diversion” to the customer. It was hard for taxpayers to discern whether a business was offering educational services or entertainment (“diversion”) services. Senate Bill 1025 clarifies that taxable activities do not include amounts paid for “instructional classes” provided at recreational centers.

Senate Bill 1025 therefore exempts such instructional classes — “any class, lesson, or instruction intended or used for teaching — from sales tax. The bill was approved by lawmakers earlier this year but then vetoed by Governor Jay Nixon. His reason: it “would require cutting up to $8 million each year from other essential services.”

However, the Missouri General Assembly disagreed, voting on September 14 to override that veto. Sen. Will Kraus, the bill’s sponsor, noted that the policy has caused much confusion to business owners over the years. He added, “I do not believe it was ever the intention of the General Assembly to tax these types of classes, just as we do not tax other educational classes.”

The change went into effect September 15th, 2016.

If you have any questions about how this may affect you or your business, please contact an Anders advisor.

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November 21, 2016

Secured $2.5 Million in Economic Incentives

Assisted a client with plans of adding jobs, purchasing equipment and expanding their manufacturing facility secure over $2.5 million in economic incentives from state, county and local governments through the Missouri Works program and the Chapter 100 bond process.

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November 21, 2016

Deferred Tax on Sale of Building Through Like-Kind Exchange and Used Historic Tax Credits on Purchase

Worked with a client on the sale of existing office space and purchase of a new building defer approximately $15,000 of tax on the sale through a like-kind exchange. Additionally, because the new building was located in a historic district, we were able to assist the client through the process of applying for MO Historic Tax Credits related to the planned rehab of their new building.

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November 1, 2016

Qualified Improvement Property: New Rules for Improvements to Nonresidential Property

For property placed in service after December 31, 2015, the PATH Act creates a new category of 39-year property subject to bonus depreciation called Qualified Improvement Property (QIP). Nonresidential property improvements can take advantage of a shorter recovery period and new tax savings opportunity through QIP.

What is Qualified Improvement Property?

Qualified Improvement Property consists of any improvement to an interior portion of a building that is nonresidential real property, as long as the improvement was placed in service after the building was placed in service by the taxpayer.

Interior component improvements to common areas in multi-tenant buildings, in an owner-occupied building, or tenant improvements in a building less than three-years old may be eligible for bonus depreciation as QIP even though they have 39-year recovery periods. There are “common area” restrictions to consider such as costs for the enlargement of a building, elevators, escalators, and the internal structural framework of a building.

How does QIP differ from QLI?

QIP is similar to Qualified Leasehold Improvements (QLI), except that QIP:

  • Is not restricted to expenditures pursuant to a lease between non-related parties
  • Can be owner occupied
  • Does not have the three-year waiting period requirement before the expenditure is eligible for bonus depreciation – provides tax planning opportunities for expenditures of newer buildings

The PATH Act extended bonus depreciation through 2019 for property other than certain longer-lived and transportation property. Bonus depreciation is 50% through 2017, 40% in 2018 and 30% in 2019.

With year-end rapidly approaching, this is a great opportunity to review your newly added fixed asset additions or contact an Anders advisor about the benefits of placing in service new additions to take advantage of this shorter recovery period and new tax savings opportunity.

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