Tag Archives: accounting

Education, QuickBooks Software, Software, Tips

QuickBooks Ledger: Welcome to the Family! We’re Glad You’re Here.

Leave a comment
QB Ledger was announced at QB Connect a few months ago.

If you’re like me, March is that special month from hell where clients that have ignored your pleas for four quarters in a row suddenly show up again… and lucky you. Because now they’ve got a new AirBnb rental property in tow! Or yet another side gig! Or even better: an estate that they have to manage until it settles, and it’s caught up in probate!

To be honest, I’ve been slowly weeding these folks out of our client list – and I feel like a jerk about it – but it just doesn’t make sense for us to spend time during our busiest season getting them caught up on a year’s worth of transactions. Especially because these are the same characters that tend to be super price-conscious, and are somehow convinced that because they have a low volume of transactions, they shouldn’t have to pay for the monthly QuickBooks Online subscription – “can’t you just use our bank statements or a spreadsheet?”

For anyone reading this who isn’t intimately familiar with these classic dance moves already – no, we can’t just use bank statements or a spreadsheet. There’s no double-entry bookkeeping, no debits and credits, no Balance Sheet, and far too many potential lurking mysteries to be uncovered only after all the manual data entry is already complete. At some point we put a stop to these shenanigans… only to find ourselves sitting in QB Desktop, doing all the write-up work on behalf of our clients – a total reconstruction job. More reliable, but not less effort. (And moot at this point, since QB Desktop has gone subscription and is slowly asphyxiating.) And yet – I was a tiny startup at one point, too! I get not wanting to spend big bucks on a full-featured bookkeeping package for an activity that’s not earning much money.

By this point we’ve filtered out most of these types of clients, raising our minimum to price out some of the potential clients we really did (in theory) want to help – itty bitty start-ups or serial entrepreneurs, those that can’t resist a good deal on real estate, or people who sadly lost a loved one and are adrift as to how to handle the demands of bookkeeping for the estate. (I did this for both of my grandmothers back in the day, using my accountant’s copy of QuickBooks Desktop. It was not fun, but boy was my family relieved that they had a knowledgeable QB ProAdvisor handy.) But some remained. Clients who we really like who have been with us for ages, or who have another full-on business that we support, or whose side-gig really serves our community and they deserve a break.

(You read the title, right? I mean… you can see where this is going?)

Enter QuickBooks Ledger.

Those who know me know that I don’t mince words about Intuit as a company. They’ve created a core product that I love, which I’ve been using in some form or another since 1993 (oof, that dates me) – but when they cross me (and they do, more than I’d like), I call ‘em out on it. I don’t like the constant price increases (though I do see the constant improvements), nor the aggressive marketing of corollary products to us and to our clients. I don’t understand why they haven’t fixed some basic functionalities we’ve been asking about for literally years. But the only reason I bother complaining is that I truly believe in QuickBooks products, and the ecosystem they’ve built, and that other software companies have built around them. Which is why it was delightful to be there when QB Ledger was announced at QB Connect in November (see photo above), and all the more delightful that since then, I’ve been able to honestly say I’m in love with this new product.

Why? What’s the hype?

Nothing. There’s no hype. That’s what’s so great about it. It’s just plain old reliable QB Online that we know and love, but without all the bells and whistles, and therefore totally affordable for uncomplicated files. It basically strips down the system to the core functionalities but retains the tools that are the most timesaving. And therefore, they only charge you for the basics. It’s $10/month per client.

At this price, and with the connected bank feeds, rules and reconciliation features, we can blow through an entire year of transactions on a cash-basis filer in literally a couple hours, and still make it affordable for the client, while maintaining plump margin for our firm. Since the bank and credit cards are connected, we don’t have to rely on the client for statements before we get started, so we can take care of most of the work well before tax-season begins. In most cases, the client won’t ever need access to the system, because it’s not about managerial insights and analytics – it’s just a compliance engagement that gets us to the point where we can file an accurate return. But unlike QB Self-Employed, this is real accounting software that gives us double-entry accounting, adjusting journal entries, and spits out proper financial statements. And also unlike QBSE, it allows for a full-on easy upgrade should the side-hustle turn into a more full-fledged business, or the real estate toe-dipper turns full-on house-flipper. (And yes, two accountants can be connected, just like the other QBO products, so if you’re not doing CAS and tax in-house like us, you can have a bookkeeper firm and tax prep firm both connected.)

Things to know before you dive in:
– It seems like QB Support staff haven’t all been trained yet on what it can and can’t do, how many and which types of users can be attached, and which use-cases make the most sense, so be aware of that. It’s also sometimes tricky to get the client added (to set up the bank feeds) because the accountant user gets assigned both as accountant and admin; as with other versions, when this happens it can be a pain to switch that over to the client. So, make sure not to check the box to make yourself primary admin when setting it up.
– And… they’ve got a weirdo situation where you can’t use a Customer name anywhere in the file (presumably they deactivated this because there’s no invoicing, which is fine… but we still need that field). I’ve got it on good authority that this isn’t a bug. I suspect this was done with the expectation that those who have customer reporting needs will just upgrade, but I don’t personally think that it will serve the purpose of moving them to Simple Start. They’ll just use an external invoicing or scheduling program to track income by customer instead of upgrading – especially because those third-party apps do in fact create these customers in the app – and then they’ll be hooked on that invoicing feature… instead of tracking things by customer in QB Ledger and eventually upgrading to Simple Start. I have clients in all walks of QBO and there are startups that can’t initially afford Simple Start who will eventually get there… but they’re going to need customers to make that happen. Another workaround: some folks are using the Vendor field with a “-Cust” after the name to get around this.
– And lastly, bummer – you can’t downgrade, you can only start a new QB Ledger file or upgrade that file. (Yeah, they were thinking about all the reluctant clients who we had to talk into paying for Simple Start that don’t actually need A/R and A/P and would be fine on Ledger… really wishing they’d released this version years ago.)

Hector Garcia just released a half-hour complete tutorial on QB Ledger for accountants and bookkeepers, so if you want a deep dive on the specifics, then you’ve found your instructor.

Start-ups, trusts, estates, once-a-year write-up or tax prep clients, small side-hustles, AirBnB and other rentals, your glam diva marching band (ok, maybe my glam diva marching band)… the list goes on. Intuit has finally taken the core functionalities that are the reason we celebrate QuickBooks Online, and packaged them into an affordable option. It’s earning them goodwill, providing a pipeline for future upgrading customers, and will surely make the switch from Desktop to Online more attractive for the masses. For us, it fits seamlessly into our strategy to shift away from once-a-year rush work. For bookkeepers just getting their start, it allows them to take on small freelance and hustle clients. Welcome to the QB family, Ledger! We’re glad you’re here.

(What’s that, you want to learn more about QB Ledger? I knew you were gonna want to know how – so I’ve conveniently set it up for you to check out this page here.)

Note! As my readers know, I am downright fanatical about transparency and full disclosure (often to my detriment, as you may have noticed that I have a wildly popular award-winning blog that is non-monetized). Though this particular post is a paid partnership with Intuit, I want you to know that a) I wanted to write an article on QB Ledger anyway, but couldn’t find the time; getting paid allowed me the break from client work I needed to make it happen; and b) they didn’t edit a single thing when I presented it. In fact, they were totally cool with all my Intuit-bashing… which made me pretty impressed with them, to be honest. I might just do this again sometime. We’ll see.

Education, Site News, Tips

The Confluence of Bookkeeping, Tax & Advisory: How to Thrive in the New Accounting Landscape (12/6 @ 3:30 pm ET)

Leave a comment

Insightful Accountant is hosting their last Future Forward virtual conference of the year on December 5-6, and I’m delighted to be presenting an exciting topic that resonates with the theme of Niches, Trends, and Predictions for 2024.

I love this particular webinar series, as it’s a fabulous opportunity to connect with peers, get the latest industry updates, and explore best practices, new tech, and other developments in accounting. They do a nice job of speaking both to bookkeepers and tax professionals, as well as tech-related and accounting-adjacent firms. This round will comprise 2 days, 9 speakers, and 11 topics as we share our knowledge, strategies and tactics. If you’re focused on launching, transforming, or growing your business — this is for you. Plus, it’s free if you attend live ($25 fee for the recording, which is totally worth it, as they’re able to subsidize the education without your having to sit through vendor commercial plugs).

My session will be held on Day 2 December 6th at 3:30 pm Eastern, and is called “The Confluence of Bookkeeping, Tax, and Advisory: How to Thrive in the New Accounting Landscape“. It was written with two groups in mind — bookkeepers and tax preparers, both running their own practices — who are getting all sorts of pressure to expand into advisory services. It’s about the trend toward co-firming and other ways to work together in order to serve the clients better, add value/charge more, and develop professional relationships that will bring you more business.

I recently attended QuickBooks Connect, and it got me all riled up (again) about the confluence we’re seeing between CPA firms moving into Client Accounting & Advisory Services (CAAS) and bookkeeping firms moving into advisory services… two previously distinct worlds starting to converge. I feel like the bookkeeping and accounting practices are often dancing technology circles around tax firms — and yet CPAs still look down on them as if they were data entry robots.

It’s time to start communicating with each other!

Bookkeepers –> learn how to “speak tax” with CPAs. Own your spot at the table.

CPAs/EAs –> bookkeepers are your friends! They have the personal relationships and tech know-how that you lack!

Let’s talk about co-firming as one of the accounting trends of 2024.

1. Discover how the scope at CPA and bookkeeping firms is starting to overlap and converge, and why that’s a good thing for you and your clients.

2. Identify the potential challenges and opportunities that this new accounting landscape brings, and how to turn them to your advantage.

3. Apply strategies and techniques to partner across or within firms, to update your accounting practice and stay ahead of the curve.

Join Insightful Accountant and me at Future Forward on December 6th as we talk about what this landscape can look like.

The Confluence of Bookkeeping, Tax, and Advisory: How to Thrive in the New Accounting Landscape – Future Forward December 5-6 2023 by Insightful Accountant (heysummit.com)

But it’s not just me! There’s an amazing lineup of speakers and sessions:

Day 1 – Dec 5

  • Checking in with QuickBooks Checking + Envelopes with Alicia Katz Pollock with Royalwise Solutions, Inc.
  • Strategies For Niching Success with Kellie Parks from Calmwaters Cloud Accounting
  • Niche to an Ideal Client Roster with Debra Kilsheimer from Profit Creator
  • Firm of the Future: Unlocking the Power of the Vertical Niche with Gregg Bossen – Creator/President of QuickBooks® Made Easy™

Day 2 – Dec 6

  • 5 Strategies to Maximize Firm Success Through Onboarding Mastery and Strategic Outsourcing with Vanessa Vasquez from QuickBooks en Espanol
  • Automate Tax Season with AI with Christine Gervais from Epiphany Group
  • Grow Your Practice with Highly Profitable Reporting for Multi-Entity Clients with Charles Nagel from Qvinci and William Murphy from Insightful Accountant
  • The Confluence of Bookkeeping, Tax, and Advisory: How to Thrive in the New Accounting Landscape with Nancy McClelland from the Dancing Accountant

The live event is free, the recordings will be made available for a nominal fee. Just click on this link to sign up.

See you there!

Education, QuickBooks Software, Tips

Expert Tips For Attending QuickBooks Connect 2023

Leave a comment

One of my favorite books when I was a kid was “Hail, Hail, Camp Timberwood,” about a girl who goes to summer camp for her first time. She’s standing around, feeling (and probably looking) uncomfortable as all the return campers are running around, hugging each other, excited to be reunited. All of a sudden, someone runs up to her and gives her a big hug and says how happy she is to see her again. After a moment of total confusion, the girl leans in and says, “Don’t worry – we don’t actually know each other. I was just feeling left out and figured I’d join ‘em.” The two of them become fast friends and go off hugging others who looked out of place and letting them in on the joke. Before you know it, the entire place was full of everyone running around hugging each other and laughing.

While I can’t say this is likely to happen exactly like that at the upcoming QuickBooks Connect conference in Las Vegas, I also wouldn’t be that surprised if it did. There will be heaps of people reuniting for the first time since last year, or at least since Scaling New Heights (check out my recent video blog about those amazing takeaways, which includes some bonus QBC suggestions). But there will also be loads of first-timers attending, who are nervous and out of their element. Find the other wallflowers and go up to them – tell them it seemed like maybe they didn’t know anyone there, either, and do they want to eat lunch together or go to a vendor booth or grab a drink? You’ll be delighted and surprised at how many of these folks you’ll stay in touch with through the years. Remember, progressive accountants and bookkeepers such as the kind you’ll find at QBC – especially those who go year after year – are excited you’re there, and they want to help make your experience better. Introduce yourself to someone who looks like they “belong” and say that you’re new, and not sure where to begin. I am sure they’ll point you in the right direction, take you under their wing, or introduce you to someone who might be a great conference buddy.

For today’s blog post, I’m going to be that conference buddy, and share with you my Expert Tips for Attending QuickBooks Connect 2023.


Tip One — PLAN AHEAD

  1. Attend a prep session webinar or podcast for individual insights. There are so many great recordings already out there: Check out the ones from The Unofficial QBC FB Group, Bookkeeping Buds, Forwardly and Uncat & Method, just to name a few. Kelly Gonsalves is hosting a star-studded one with Insightful Accountant – sign up here. Every registered participant will get a recording to watch on the way to Vegas!
  2. Plan ahead, make a schedule, but be comfortable diverging from it; that way you don’t waste time figuring out what to do in the moment, but you also don’t miss the organic opportunities that arise.
  3. Make a list of vendors you’d like to meet; they’re often very busy during open Exhibit Hall time; it might be helpful to set up a time with them to meet during a session when the Hall is less busy. Bring a list of questions you’d like to have answered. Narrow your scope… it’s impossible to visit everyone. Pick a few areas of interest, look into which vendors serve those areas, and focus on them.
  4. Connect on social media with others who will be attending, whether it’s in a Facebook group like The Unofficial QuickBooks Connect Conference Group (where many of us shared short videos of what we’re looking forward to at QBC this year), LinkedIn, or other platform, you can always use #QBC2023 or #QBConnect to find out who you already know that might be going. Engage and make plans ahead of time.
  5. Register for parties that aren’t already in the QBC app!

Tip Two — DOWNLOAD AND USE THE MOBILE APP

  1. When you log into the QB Connect website, and once you’ve downloaded and signed into the conference app, you can select sessions ahead of time in the app or on the website; they sync with each other.
  2. If you click on the session, it will show you speaker info. If you click on the speaker it will show their bio and all the sessions they’re teaching.
  3. You can “register” for only one per timeslot, but you can “favorite” many, which is great if a session turns out not to be your cup of tea and you want to bail for another, or if you’re somewhat undecided.
  4. Lines will form for the “sold-out” sessions, and they will let additional people in if there’s capacity, which there usually is –  get there early to be near the front of the line.

Tip Three — PACK WISELY AND COMFORTABLY

  1. Wear comfortable shoes – there’s a lot of walking, even though it’s a confined space. (Plus, dance parties!)
  2. Pack an extra collapsible duffle bag for swag if you’re into it – but remember… you can also say “no thank you”. It’s easy to get lost in the freebie frenzy, but do you really need another stress ball?
  3. The breakout rooms are often FREEZING! Bring a wrap or sweatshirt. Also, Vegas is in the desert… it’s chilly this time of year.
  4. Bring a refillable water bottle (or reuse a plastic bottle) and/or coffee/tea mug; there will be dispensers, and also, the water in your hotel room is fine to drink. Pro tip: the gym is 24/7 and has great filtered water.
  5. Bring battery packs and chargers – often the rooms are in a basement and your cell struggles and chews up your battery; plus you’ll want to be on the conference app, your association’s slack, and you’ll probably text a lot.
  6. The hotels are pricey! Buy food & drink at a nearby convenience store if you’re going to want snacks or a bottle or box of wine outside of the usual meals and parties – but there are lots of those, so it’s not strictly necessary. Also, ordering delivery food is a lot cheaper than eating at the casino.
  7. There are no coffee-makers in the rooms, and the line at the café winds through the casino. Bring a portable tea kettle or coffee-maker; this is ours.
  8. Carry small bills for tipping bartenders at the various happy hours, socials, parties and receptions. They work hard and many attendees don’t think to bring cash.
  9. Bring earplugs for sleeping and loud parties.
  10. All that said, don’t overpack. We’re only there for four days and you can re-wear some of your clothing. You don’t want to get stuck spending most of your final night re-packing your whole wardrobe. You’ll probably need less stuff than you think.
  11. There’s usually a spot at QBC where you can store your luggage on the last day, after checking out (rather than with the hotel concierge).
  12. Dress code: BE YOURSELF. Many people are in sweats and jeans, others are in power-suits or dresses, and some of us love dressing up in-costume and wearing tiaras whenever we get the chance. Wear what makes you feel most like yourself.

Tip Four — TRAVEL CONSIDERATIONS

  1. Sign up for the Forwardly/Fyle Shuttle from the airport to Aria on Nov 12 & 13 — The whole city has been torn apart in preparation for the Formula 1 Las Vegas Grand Prix and rideshare surge prices are already insane.
  2. Related: plan for ample travel time while in Las Vegas, whether you’re on foot or in a vehicle. Use cabs instead of rideshares when you must take a vehicle, as they are prohibited from surge pricing. Stick with over-street pedestrian bridges and monorails when possible.
  3. Once you’ve met a bunch of folks at the conference, consider coordinating to share a cab back to the airport when you depart.
  4. Check in early and skip the QBC lines. On Nov 12 from 12 PM-7 PM you can head to the Mariposa Registration Desk on Level 2, and you’ll be automatically entered for a chance to win a meet-and-greet with Ryan Reynolds! Remember to bring your ID.

Tip Five — NETWORKING

  1. Represent your tribe… for example, the Bookkeeping Buds are going to wear our tiaras for one of the sessions where a member is presenting. I also always bring my favorite Bookkeeping Buds bag and use it instead of the conference one (it not only is a nice talking point, but it also is easier to find if you leave it behind somewhere). Many folks love wearing t-shirts from their favorite apps – Kim Noh even has her own tee that has logos of her tech stack!
  2. Stay connected via Slack, social media, and texts throughout the conference.
  3. Bring business cards – digital, paper, or a paper one with a QR code (or QR code stickers). I’m using HiHello for my first time this year, but there are loads of others out there. These days the vendors usually just scan your badge to get your info, but they do sometimes have raffles where you can drop an old-school card in an old-school fishbowl; I have a different set of b-cards I use for these with an email that routes to a different folder.
  4. Prepare your elevator pitch – who are you, what do you do, why are you here, what makes you different? What will I want to remember about meeting you?

Tip Six — TAKE CARE OF YOURSELF

  1. Sleep well the week and weekend leading up to the conference – the sessions start early, the parties go late, and there’s always something happening in the hotel bar.
  2. Put your badge on the inside of the doorknob when you get back to your room, so that you remember to grab it on your way out. They are strict about not letting anyone in without it.
  3. It’s okay to skip the morning session if you were up late, or to take a nap during a mainstage or between events. Give yourself some grace.
  4. But be careful about how late you stay up and how much you drink. You don’t want to miss something valuable or feel sick just because you lost track of yourself. Bracelet trick.
  5. Consider arriving a day early or leaving a day late so you can see the sights in Las Vegas. That’s harder this year because of the Formula 1 race coming up, but if you haven’t been to Absinthe, Lost Spirits, a Cirque de Soleil show, the Fremont Street Experience and the downtown Vegas lights, or the Museum of Neon, I can highly recommend taking the extra time to make it happen.

Tip Seven — SET YOURSELF UP FOR SUCCESS

  1. There are always seats up-front, even when a session looks full. Don’t be nervous about walking right up there, even if it’s a few minutes into the session. No one’s looking at you, and no one cares.
  2. That said, feel free to ditch a class if it’s not what you were hoping for or expected. There are other workshops that will be better worth your valuable time – or maybe it’s an opportunity to visit with vendors or network with colleagues.
  3. Take lots of notes – notebook, e-ink pad, tablet, laptop… however works best for you. Make one page a list of client-specific takeaways and one page a list of actions you’ll perform when you get back to the office. (In fact, as a paper-note-taker, I plan to check out my friends’ Remarkables and Supernotes as one of my research goals for the conference.)
  4. In that notebook, keep one page aside for notes that are about client-specific problems that you will solve when you get back home; and another for non-client-specific items you will address. Try to restrict that second list to only 2-3 things – it’s impossible to implement every shiny new idea you come across. Those will hang around in your head and you’ll get a chance to learn more at the next conference, by which point maybe you’ll have a new set of goals.
  5. Supposedly they are giving out free headshots at the Intuit booth, but I’m not sure where the info is on that.
  6. It’s natural to be nervous, but you can do this! Even extroverts struggle with meeting new people sometimes. Move through that shyness or fear and lean into the fact that almost everyone here came alone; everyone had a first conference where they didn’t know anyone; and everyone is here to meet other people and develop their practices. We have so much in common… sit at a lunchtable where you don’t know anyone and introduce yourself. Ask why they’re here and what they’re enjoying most. Find out where they’re from and what their specialty is. Tell them your goals and ask if they have advice. Ask them what their tech stack is and share your struggles with your choices and vendors and all the things. We will never run out of topics to talk about with each other, because there is so much to learn in our industry. Plus, chances are that these are folks who are as passionate about what they do as you are, or they wouldn’t be here in the first place.

See you next week at QuickBooks Connect!

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. Ths allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

Education

Conference Alert: The Unique CPA “Bridging The Gap”, Aug 29-30, 2023

Leave a comment

I’ve been a fan of Randy Crabtree’s Unique CPA podcast for a while, and though we’ve run across each other at accounting technology conferences here and there, I had no idea that he was so committed to our industry as to hold an entire in-person event for us! The upcoming “Bridging The Gap” conference will be held right near Chicago’s O’Hare International Airport, and promises two full days of education and networking (plus an optional pre-conference).

Especially exciting is the lineup of sessions by some of my favorite speakers, including Dawn Brolin, Nayo Carter-Gray, David Leary, Kellie Parks, Blake Oliver, John Garrett, Paul Hamann, and Gaynor Hardy-Meilke. (I’m sure the other presenters are delightful as well, but this tried-and-true list is GOLD, in my opinion.) Check out the agenda here.

Randy’s conference has been virtual the past two years, and this is the first time it’s being held in-person. The focus is on bringing a fresh focus to work-life balance and how it relates to making us better professionals and people. The emphasis on physical and mental health truly makes this a unique conference in the accounting world. I think this was the claim that got me to click the sign-up button:

And even better… you can use code BTG23RTDISC for $150 off the In-Person Conference ticket!

Just to be clear — I’m not being paid to promote this conference… any of our regular readers already knows that I’m passionate about education and community. Realizing that there’s yet one more opportunity to find both at this under-promoted conference motivated me to share — to make sure that my colleagues know not to miss it. Register here and join me August 29-30. Leave a note in the comments if you’ll be there and we’ll try to connect!

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. Ths allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

Cooperatives, Education, IRS, Tips

National Society Of Accountants For Co-ops Upcoming Webinars

Leave a comment

I often write and speak about my experiences as a co-op accountant, and how challenging it was to become an expert in the field with so few resources. Things have changed a lot since back then, with the National Society of Accountants for Co-ops (NSAC), National Cooperative Business Association (NCBA), and the Co-op Professionals Guild (CPG) all offering online education.

The NSAC line-up for the next few months is seriously powerhouse. For anyone in the field or looking to get into it, I strongly recommend a membership, which gets you into all of these webinars below at no extra charge. That said, if you only want to know the specifics of one topic or another, they are affordably priced at $56 each for non-members.

Note: I am not paid or given a discount to promote NSAC — I just think they’re great!

Behavioral Ethics March 9, 2022 | 11:00 AM EST
FREE NSAC Members | $56 Non-Members 
CPE: 1 Credit Hour
As we continue to be challenged by an increasingly complex business environment, it is important to develop ethical reasoning skills that allow us to put ethical decision-making into practice. In this session, attendees will discover how to identify ethical paradigms and learn how stakeholders are impacted by their ethical choices. Additionally, participants will explore real-life cases that will allow them to rehearse ethical practices. Be prepared for any ethical dilemma and register now! Click for more info. 
Agricultural Economic Outlook April 5, 2022 | 11:00 AM EST
FREE NSAC Members | $56 Non-Members 
CPE: 1 Credit Hour
Want to know more about current and expected market conditions affecting agricultural co-ops? This CLN will address the core issues impacting the macroeconomy, agricultural commodity markets, and the agricultural economy with particular focus on the effects of COVID-19 and inflation. Attendees will get an outlook on the agricultural commodity markets; including corn, wheat, soybeans, rice, cotton, hay, cattle, hogs, and dairy, as well as the impact of rising production costs. Gain valuable insight into current market conditions by registering today! Click here for more info.
Financial Ratios for Agricultural Co-ops April 20, 2022 | 11:00 AM EST
FREE NSAC Members | $56 Non-Members 
CPE: 1 Credit Hour 
Designed specifically for Agricultural Co-ops, this session will explore how to analyze company performance based on an evaluation of financial statements, and introduce ratios used in the financial analysis of cooperatively structured organizations. Learn what to look for when comparing a company to its peers and industry norms, and how to analyze company performance compared to strategic business objectives. Take advantage of this revealing CLN today! Click here for more info.
Financial Ratios for Electric Co-ops April 20, 2022 | 2:00 PM EST
FREE NSAC Members | $56 Non-Members 
CPE: 1 Credit Hour
Designed specifically for Electric Co-ops, this session will explore how to analyze company performance based on an evaluation of financial statements, and introduce ratios used in the financial analysis of cooperatively structured organizations. Learn what to look for when comparing a company to its peers and industry norms, and how to analyze company performance compared to strategic business objectives. Don’t miss out on this engaging session! Click here for more info. 
Tax Update April 28, 2022 | 11:00 AM EST 
FREE NSAC Members | $56 Non-Members 
CPE: 1 Credit Hour
This session will bring attendees the latest and up-to-date tax law changes and new tax return reporting items. Additionally, the CLN will explore any anticipated future tax law changes. Some of the topics that will be covered include: Meals and Entertainment, 163(j) Interest Expense Limitation, Net Operating Losses, R&D Tax Credit Update, and State Taxes Post Wayfair. Stay informed about the latest developments that are most likely to affect your organization with this 60-minute zoom! Click here for more info.
Processing of Work Orders for Electric Co-ops May 5, 2022 | 2:00 PM EST
FREE NSAC Members | $56 Non-Members 
CPE: 1 Credit Hour
In this CLN, participants will review the accounting process for construction and retirement of utility plant from the work order stage to unitization. This will include the audit perspective of this process, along with industry trends and common mistakes to avoid. Sign up today for this exclusive guidebook to processing work orders! Click here for more info.
Navigating New FASB Guidance: Your 2022 Guide May 12, 2022 | 2:00 PM EST 
FREE NSAC Members | $56 Non-Members 
CPE: 1 Credit Hour
Join us for an informative overview of new FASB standards that could impact your organization. This session will explore recent developments in the financial accounting standards relevant to cooperatives. Guest speakers Randy Throener and Amy Schreck will discuss the latest FASB guidance so attendees can successfully implement these recent amendments. Take advantage of this educational CLN! Click here for more info.
How Electricity and Demand Really Work & How it Impacts Rates May 19, 2022 | 11:00 AM EST
FREE NSAC Members | $56 Non-Members 
CPE:1 Credit Hour
As cooperatives consider moving from traditional to more innovative rate design structures, it is increasingly important to understand the different billing units required for each innovative design. Three-part, Four-part, Time-of-use, Critical peak, Super off-peak, and other innovative rate designs require an understanding of and access to a range of billing units. These include Non-coincident demands, Coincident demands, Time-based energy usage, KVar, and more. In this encore session from TFACC 2021, attendees will learn some of the billing units required for innovative rate designs, and explore some of the challenges involved in obtaining, using, and explaining them to members. Don’t miss out on this specialized presentation! Click here for more info.
Education, Site News, Tips

What’s The Difference Between A CPA, Bookkeeper, And A CFO?

2 Comments

I have often imagined what my firm might look like in five years and how what I do then might be different than now. And when I watch videos by Hannah Smolinski of Clara CFO, I think: “that’s it! I want to do what she does.”

No, I don’t necessarily want to specialize as a fractional/outsourced CFO (although we already do a lot of this type of work for our clients). What I mean is that I love teaching small business owners how to better manage their companies, and training other bookkeepers and accountants how to better help their clients.

This video was a great example of that — a topic that small business owners need to understand but that few folks take the time to explain. (Although I have one complaint: she should have made it clear that “CFO” is just a title — it’s not a credentialed designation like EA or CPA. As with “tax preparer,” “bookkeeper,” or “accountant,” anyone can call themselves a CFO. So be careful.)

I agree with Hannah that our profession has done a poor job at explaining exactly what it is that we do. My clients mistakenly referred to me as their CPA for years before I actually sat for (and totally killed, mind you) the exams — and I’d have to correct them to make sure they knew I wasn’t qualified to do public accounting (for which the exams certify you). And they were like, “well, once you’re a CPA, how will what you do for us change?” The answer… um… it won’t, not at all. My firm will still do your bookkeeping, accounting, tax preparation, tax planning, financial analysis; and some things Hannah forgot to mention in her video: accounting technology consulting, internal controls/systems design, HR/payroll/benefits, and local/state tax compliance (sales/use, restaurant, soda, liquor taxes). We pride ourselves in straddling the worlds of bookkeeping, accounting, analysis, and tax — providing holistic small business financial consulting.

I think that’s the reason we don’t do a great job of explaining what we do — there’s no requirement to get a certification or degree to perform any of these duties. I did them before I became a CPA, I did them afterwards, I still do them. And a lot of my non-CPA colleagues in Bookkeeping Buds, for example, absolutely dance circles around certified accountants when it comes to accounting technology, clean-up and problem-solving, local/state law compliance, and designing efficient and accurate systems and processes.

And if you’re wondering why I bothered sitting for one of the hardest exams in the world (four parts, over a period of more than a year), it was because my colleagues took me more seriously as a CPA — not my clients. (At conferences, many CPAs and EAs were entirely dismissive of those of us who hadn’t tested their mettle against the exam process.) It was my Master’s Degree in Accounting & Financial Management — not preparing for the CPA exams — that taught me the additional skills I wanted to use with clients: financial analysis, strategy, managerial accounting, cost accounting, etc.

Long story longer: check out the video above. It does a nice job of explaining the breakdown among job titles — and I think the most important takeaway is to make a list of the duties you’d like fulfilled, and then ask around your network of other small business owners until you find a professional who knows which of these they can perform, and has a solid network to find others who can fill in the missing pieces. A good bookkeeper, accountant or CPA doesn’t work in a vacuum — we refer the work that isn’t in our wheelhouse to other talented professionals. For example, it’s prohibited by law for us to perform legal or investment services, but we’ve worked with many lawyers and investment advisors and know where you point you. Hiring any of these roles should be an addition to your team that is greater than the sum of its parts.

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. Ths allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

Cooperatives, COVID-19 Financial Relief, Education, Site News, Tips

The Dancing Accountant In The Journal Of Accountancy

Leave a comment

I am excited to highlight yet another feature in the AICPA’s Journal of Accountancy. Their “CPA Insider” has been one of my habitual reads and go-to publications for years, and so to be included in their article, “The Year Ahead: CPAs share their ambitions and goals” is a special honor. Many thanks to author Kelly Hinchcliffe for reaching out again after our last piece together, about protecting small business clients from predatory loans.

As with all interviews, one shares more information than can be printed, so I always enjoy posting the full interview here on my blog.

What are your goals for 2021 in the following areas for yourself and/or your business?

  • Career goals: What would you like to accomplish professionally in 2021, and why?

It has been a long-standing goal to start putting my company’s internal systems on the same level of importance as client work… to prioritize them in the spirit of “Profit First” (which I’m also terrible at doing, despite being an accountant). Everyone else’s needs always seem more pressing than our own company’s: cybersecurity, engagement letters, contracts, operating agreements, workflows/ procedures/ standardization, and billing. I would love to “catch up” and focus on my own company’s health with as much passion and investment as I show my clients’ companies. To that end, I am hoping to slow down client acquisition growth (we always have a waiting list, so this is challenging), develop staff internally, and hire an administrator to help keep me on-track and focused on these projects.

  • Technology skills: What technology skills will be most important for your job in 2021? Is there anything new you’d like to learn?

I have prided myself on being at the forefront of accounting technology for a long time, compared to many CPAs — most colleagues that I know either focus on the tax side or the bookkeeping side, whereas we make it our goal to straddle both worlds and provide value-added accounting services in doing so. I think we pull that off quite well where our clients are concerned — we have a rich tech stack and solid implementation resources for automating accounting, bookkeeping, point of sale, payroll, retirement and similar systems. However, internally, our own systems are very disjointed. Because of the challenges of staff growth and migrating away from legacy software, we do not follow the same advice we give clients — to make sure all the apps in our tech stack “talk to each other”. Therefore, technology-wise, my goals align with the career goals I mentioned earlier: focus on internal needs and improving workflows to make us more efficient. This includes migrating time-tracking & billing software, using Zapier to automate client onboarding and database population, and switching file upload software to automatically connect with our cloud file servers.

  • Professional development: What professional development goals do you have for 2021, and what learning opportunities are most helpful to you?

Continuing education is never-ending in our firm! It seems my staff and I are always attending one webinar or another — on such diverse topics as PPP (my favorites being the AICPA Town Halls and Alan Gassman‘s periodic free sessions); ERC and tax law changes (Tom Gorczynski and Tony Nitti are favorites); Intuit’s QuickBooks Online In The Know updates; and app demos (I recommend Hector Garcia, Heather Satterley, and Cathy Iconis‘s regular offerings)… as well as the usual suspects, such as tax updates (I never miss the NATP Annual Conference, and usually attend Tax Speaker‘s year-end class), and co-operative topics (a niche market for my firm, I like the NSAC webinars as well as the annual CPG Conference). CPA Academy also offers highly-specific free or low-cost webinars that I find quite valuable. I provide a good budget for both time and course costs to my staff because I want them all to be as excited about learning new things as I am. We each have different interests and areas of expertise.

  • Business opportunities: What are your business goals for 2021, and why?

The pandemic made me realize how much of a dedicated following my award-winning blog has… it truly hadn’t hit home until I realized I was one of the only reliable sources nationally for the constantly-changing Paycheck Protection Program. I started offering free zoom Q&A sessions to my clients and colleagues every week, and some of these I shared on the blog. The feedback has been incredible. It reminded me how much I love teaching, and gave me renewed interest in offering low-cost educational materials and sessions specific to small business owners (and the bookkeepers and accountants who assist them). I’ll be exploring this direction more in the coming year.

  • Anything else: Is there anything else you’d like to add?

My staff and I have operated a remote company for years, but I still met with clients in-person most of the time. This limited the personal goal I had of becoming a “digital nomad” and traveling while working (my husband’s software development work is 100% remote). The pandemic changed all that — we were in Yucatán, Mexico on a tax-season work retreat when Covid-19 hit, and we simply never went back home to Chicago. (We intend to do so once a vaccine is widely-available.) My clients had the opportunity to discover that I am every-bit as involved in my hyper-local community from afar as I was at home, and the silver lining is that I am now considering what my new office will look like… will it be half-a-year in Chicago and the other half elsewhere? Will we sell our home and live on a boat? What about every tax season being somewhere sunny? The options are endless and give me some extra energy and anticipation while I trudge through the challenging task of keeping my small business clients afloat to see a brighter future.

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

Tips

Benefits of Outsourcing Accounting Work

1 Comment

Nice, short, to-the-point article in Accounting Web this week that I wanted to share encouraging folks to outsource their accounting function.

Accounting and finance are often among the first set of duties to be outsourced. These tasks, which require considerable attention to detail and expertise, can help businesses protect themselves from financial and legal hazards while also finding creative methods to improve their bottom line. An outsourced accountant can help your business organize (or reorganize) your books, prepare its taxes, generate long-term financial projections, establish an eCommerce platform and much more.

They illustrate how opportunity costs should factor into your decision, using a simplified example:

Suppose that your business’ accounting responsibilities require 100 hours of work per month. If you consider each hour of work to be worth $40 (or whatever number you deem fit), this means your business’ total accounting costs will amount to $4,000 per month ($48,000 per year). However, if your business could generate $50 worth of revenue for every operational hour that it gains, this means you are missing out on $5,000 per month ($60,000 per year) in positive cash flows.

They do a nice job of outlining the benefits to outsourcing as well:

  1. Cost-effective
  2. Access to expertise
  3. Access to new systems, structures & technologies

In fact, according to Deloitte, two of the most common reasons for outsourcing include improved performance (62 percent) and reduced errors (53 percent). Because only a fraction of business owners have accounting or financial experience, these functions are often among the first to be outsourced.

Source: Benefits of Outsourcing Accounting Work