Tag Archives: Bookkeeping Buds

Education, QuickBooks Software, Software, Tips

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

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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

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

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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.

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I Was Named One Of The Top 50 Women In Accounting!

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It’s taken me a month to make the announcement, because the award timing was smack-dab in the middle of tax season… but I was recently named one of the Top 50 Women in Accounting by Practice Ignition — one of only 20 women in the United States.

The coveted international annual award, in the words of the sponsors, is determined as such:

Those included in the list came from all corners of the globe and ranked among the highest on our anonymised scoring system which took into account;

  • Dedication to promoting inclusivity and diversity in the workplace and beyond
  • Investment in the next generation and the future leaders of accounting
  • Advocacy of the accounting industry and support of the wider community

I was honored to be nominated, even more so to be awarded, and excited to have the opportunity to share how our firm lifts up the voices of women in our field. The award is designed to celebrate the women who are driving advocacy, change and creating opportunities in the Accounting and Bookkeeping industry.

As such, they asked us the following questions, and I wanted to share my answers, because I feel that an award is only as good as the reasons for its being given. Thank you to Practice Ignition and the greater accounting and bookkeeping community for this wonderful honor.

1) Provide an example of how you are actively promoting inclusivity and diversity in your workplace?

Our firm is focused on a hyper-local population of small businesses in my Chicago neighborhood, so most inclusivity efforts are focused here in the community. I speak Spanish, which enables me to share vital accounting information with an often-underserved population. 

I’ve done significant outreach to Spanish-speaking communities regarding PPP lending. Almost a quarter of Chicagoans are native Spanish speakers, and the pandemic has made the need for professional fiscal guidance for these small business owners more urgent. I spearheaded a pro bono event for our state representative’s office in a largely Latino neighborhood, which was then translated into Spanish, and did a radio interview on a Spanish-langage show to promote it. I also created a blog post with both my interview and the Spanish-translated version of the webinar. 

I do this work after-hours, for free: not to court clients or try to be a hero, but because I believe all small businesses deserve access to expert guidance, not just those who can afford it—especially during a massive economic contraction. 

I also strive to mentor, coach, and funnel new business towards bookkeepers and accountants of color. I’m privileged to have an amazing network and share with others as much as possible. 

2) Explain how you are investing in, and championing, the future of accounting and advocating for the next generation of leaders?

Because I believe in promoting food security, worker fairness and equitable economics, I’m working to mentor the next generation in the specifics of co-op accounting. I give presentations for the NCBA (National Co-op Business Association), NSAC (National Society of Accountants for Cooperatives) and CPG (Co-op Professionals Guild) on the different types of co-ops, demonstrating their sustainability as an economic structure. The pro bono work I do in these groups is an effective way to share knowledge—teaching valuable skills and modeling leadership for the next generation.

I also offer numerous free webinars and consultations to young women accountants through organizations like Bookkeeping Buds (more below). In addition, I employ three outstanding women as my staff—having introduced two of them to this career path and provided their initial training and development. They receive both monthly and annual paid training hours, and we have weekly mentorship meetings—as well as ad hoc training sessions—and I pay for their continuing education classes. This investment benefits my business in the short run, but I do it because I’m committed to their professional development long-term as women in a male-dominated industry. My first hire has even gone on to start her own bookkeeping business.

3) Provide an example of how you are promoting advocacy of the accounting industry and actively supporting the wider community.

I provide regular pro bono continuing education and mentoring for newer industry members through Bookkeeping Buds, a national community that helps women bookkeepers grow stronger practices by sharing support, resources and education. Throughout the pandemic, I’ve shared my expertise in areas such as PPP,  ERC, RRF, and local/state/industry grants—as well as the bookkeeping and tax ramifications of those programs—extensively: on a daily basis with members on Slack, and through free targeted webinars. I was honored to be awarded 2020’s “Bud of the Year” for my contributions!

My award-winning blog is the community service I offer of which I am proudest, because I use it to.provide free accounting resources to small businesses who do not have the funds to hire a CPA. I earn no money from ads or commissions.

Finally, I made the decision not to charge my clients for work on COVID-19 relief resources in the first three months of the pandemic. These small businesses were already hard-hit—to ask for money they don’t have during an economic crisis simply didn’t feel right to me. Giving small businesses my time was the best way I could think of to help them—and my beloved Chicago community of Logan Square—survive.

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.