User talk:Cobbcpa

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If the $30,000 was paid by cash or check and the source of the cash was from his earned income than he can deduct the $30,000 and his spouse will have to report the cash as taxable income. He cannot deduct the other payments as alimony.

Liability ins

Only $100 premium for $100,000 coverage? Is that the annual limit? Will you share with me your gross revenue? Is it over $100k? I'm going to have to check them out.Natalie 12:54, 21 April 2009 (CDT)Natalie



Hi, just got your message about Quickbooks installations.

The secret to my Quickbooks setup is to can the chart of accounts that QB installs during the wizard setup. I then create a chart of accounts based on the taxpayer's tax filing. For Sole P's and LLC's that flow through to Schedule C, I create chart of accounts which mimic the Schedule C line items exactly. After consulting with the client, I would create each Schedule C line item account and a master account called 'Other Schedule C' expenses and then have sub accounts for anything that would show up on section IV of Schedule C. I also set up a revenue account and an expense account called Ask my Accountant (most clients can get it correct as to whether an item is revenue or expense). If the client already has an existing QB installation and is using me to fix their problems, I will get it all straightened out and then manually move their balances from their chart of accounts to a C based chart of accounts with G/L entries and retrain them to use the new chart of accounts.

I figure that come tax time, these QB clients will either be tax clients or they will not. If they don't engage, I made their personal tax preparation easier for them and they refer friends. If they do, I don't even have to do anything but a review of their G/L in QB to ensure their books are correct. I don't have to spend precious time trying to map their chart of accounts to Schedule C accounts. Nor do I have to recalculate hordes of misclassified entering a good description in the chart of accounts for the user to go by, I generally don't have too many problems. If you look at the line items for Schedule C, it is pretty intuitive where expenses go. However, not so much on the QB suggested COA.

As for my engagements, I have a consultation (30 minutes or so) to learn the high level information about their business. For instance, which form of business they use, what QB modules they use, cash or accrual basis, how far behind on record keeping they are, names addresses and phone numbers, etc. I then ballpark a figure based on my estimated time but I usually charge anywhere from $500 to $1,000 for QB setups and I generally spend less than 10 hours total time on each client including installation and training. Once I get the overview, I prepare a base setup at my home (using their business information) and I generally have the file ready to install from a thumb drive when I get to their site. On installation day, I install QB (if it isn't already there), copy over their file, and I will generally use their live data to train them. QB is so intuitive that about half-way through entering data, I hand it to them to have them complete the data entry--I enter at least half to save time because I am quicker. If needed, I will send them a PDF file of a user guide based of their transactions based on their business. I generally can get a feel for how computer savvy the client is at consultation...if I feel that the client will need this PDF file, I will charge an extra $50 to $100.

That's it. I leave the client site after two hours on average and the client is up to current date with bank statements balanced. They are generally very happy with the complaints yet about the pricing or the outcome. I also provide quick answers for free if the client gets in a pinch.

If the client does their own books and comes to me for tax preparation, I will review their QB file at year end to make sure it is correct. Even the best bookkeepers and segregationists mix a personal transaction in there and incorrectly code it to something other than drawing or something like that. I have them make corrections and I walk them through the entry of their depreciation entries for the year. I try not to personally make any entries into a client's system unless I am engaged to do the bookkeeping myself (which is never to this point).

That's it. The real secret is the chart of accounts. Everything else is easy.



I had an email from TA that you sent me a message but could find nothing on my talk page.

Death&Taxes 18:02, 20 August 2009 (CDT)

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