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Discussion:Software issue

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Actionbsns (talk|edits) said:

18 March 2014
I think I need a little help taking a look at my client's industry specific software. My main experience is on QB, I've done some work with other softwares in the past and with some major accounting software in college, but mostly it's been QB. I know this isn't directly a tax discussion, but it will become one as the year progresses.

The problem I have with the software is that the accounting seems to be all on the balance sheet between Vendor Deposits and Client Deposits. As they bill, you can watch the accounting process take place as Accounts Receivable, Accounts Payable, Income, Expenses begin to act as I would expect them to. In order to do this, the client has to do interim billing, which she says drives her clients crazy. At year end they did a lot of interim billing which reduced the Client Deposit account from around $650,000 to $120,000, and Vendor Deposits to about $50,000. But now I'm seeing a lot of credit type of activity creating a larger loss at this time of year than I usually see. The office manager who handles the billing says that a problem with interim billing is that as the project progresses, things change and as that happens, the invoicing changes which is why there are credits. I'm not sure if I'm following this properly and what I might need to be doing or understanding differently. It makes tax planning a real nightmare. BTW, this is an interior design business, FWITW. Any suggestions would be appreciated.

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