Bookkeeping Money-Saving Tip # 18: QuickBooks, Quicken and TurboTax

 

At this time of year, your taxes are hopefully done, and you are probably not thinking of taxes at all. That’s all well and good, but have you begun planning for next year? Because whether your business is brand new, has never had a “regular bookkeeper”, or has been doing bookkeeping the same old ways for numerous years, it never hurts to consider if this year is the time to update your bookkeeping programs or stick with what you’ve always done.

For me, I always like the most updated version of anything… like the iPad 2… I totally want one!

Anyway… I bring this up now – after tax time – because if you are thinking of doing your taxes the same old way, or updating to something new, now is as good a time to start as any. With taxes out of the way, it is the perfect time for any business owner or bookkeeper to take a little bit of time to invest in updating their bookkeeping programs and “catch up” on anything that is still unprocessed.

The reason now is the best time is because… most banks will let you download ONLY the last few month’s worth of bookkeeping transactions instantly.

What do I mean by that, you may wonder.

Simple. Almost (and I do stress on the word “almost”) all banks have updated their online banking programs to create “downloadable bank transactions” for a specific period of time (meaning a specific number of months). The benefit here is that any business can instantly download hundreds and thousands of transactions instantly, and with the right bookkeeping program, have those transactions posted to the correct bookkeeping accounts instantly.

In other words, NOW is the perfect time to upload those transactions into your bookkeeping program and get those books up to date FAST whether or not you have the time to “work on the books”. If you wait, you may find that you have to manually key in those hundreds and thousands of bookkeeping entries, which will take a whole lot more time.

There is one catch, however. The banks do not create these downloadable transactions for ALL bookkeeping programs. Yet, because QuickBooks and Quicken are the most popular bookkeeping programs on the market today, most banks do setup the transactions into these downloadable files in such a way that QuickBooks and Quicken can process them. In fact, many banks (especially smaller banks) ONLY create these files for QuickBooks and Quicken, but for no other bookkeeping programs.

So in case you were ever in doubt as to which bookkeeping programs I prefer (especially for saving time and money), I recommend QuickBooks and Quicken all the way.

The Difference Between QuickBooks and Quicken

I’m not going to go into too much detail here, but I will give you my quick thoughts on Quicken and QuickBooks right now.

As far as business transactions go, I believe QuickBooks is the best program out there for any type of business. It’s easy to use, to input transactions, to correct mistakes, and to create all the financial reports you need. It also allows for a lot of “automatic data entry”, meaning the program does the work for you and thus allows you to save time.

As for personal bookkeeping, and especially stocks, I like Quicken. Quicken has this strange sort of programming that often cuts the user out. What you do is link it to various bank accounts (and stock accounts) and then Quicken can automatically update transactions from those accounts instantly. If you aren’t very familiar with the program, it can be difficult to find and maneuver through those transactions in case you need to change anything. (Now, I know a lot of users familiar with Quicken will disagree with me, but I have always found myself a bit frustrated with Quicken. Even though the program is cheaper, I find QuickBooks much easier to use.)

Having said that, I tend to use BOTH programs, however, especially when it comes to doing my personal and business taxes at the end of the year.

Quicken, QuickBooks and TurboTax

Quick Disclaimer: I always recommend businesses use accountants to do their business taxes, if they can afford it. It just makes dealing with the IRS simpler.

Having said that, I fully recognize that not everyone will want to use an accountant at the end of the year. Many will wish to save money and do their taxes themselves. (I am one of them.) Or, if they do not go to an accountant, they may go to a tax preparation company like H&R Block. Now, while I’m not knocking H&R Block, I do happen to know that the tax preparers at H&R Block are not always very familiar with taxes. The consultants receive 80 hours (two weeks) of training before they are put to work. Their bookkeeping programs often do the same financial prompting that programs like TurboTax and TaxCut do.

Now, when it comes to doing my own taxes, I prefer to use TurboTax as opposed to TaxCut. Yes, TurboTax costs a little bit more, but it is thus far, the only tax program I’ve seen that is compatible with Quicken AND QuickBooks. It can instantly download the files from Quicken and QuickBooks and then post the account balances to the accurate forms and lines in your tax return. This saves tons of time on data entry, and all you have to do is go through the questionnaire. With TaxCut, you have to manually enter everything yourself, and thus FIND every number from your bookkeeping reports / program.

The reason I use BOTH QuickBooks and Quicken is because I have a rather large taxable portfolio. I have rental properties that I maintain, as well as my Office Administration business, and then my writing business. On top of that, I dabble in the stocks. Ironically, it was this last bit of my portfolio that brought the IRS to my door several years ago.

Reporting Stocks

When I first began dabbling in stocks, I incorrectly thought I only had to report the money I withdrew from my stock account as income to the IRS. Since I only took $10,000 out of my stock account that year, I reported $10,000 in stock income to the IRS. My stockbroker, however, told them that I had made $750,000 – and the IRS wanted a chunk. You can imagine my shock when I got the IRS bill.

After contacting the IRS and realizing where I went wrong, the IRS agent told me that I had to report EVERY PURCHASE AND SALE in order to determine the taxable income, whether or not I had withdrawn the money. Since I liked to dabble a LOT (a LOT a LOT), I knew immediately that I wanted to shoot myself. Fortunately, I had Quicken for one of my clients, and that version of Quicken could handle stocks. When I logged in and “Updated” the program to my stock account, then linked it to that year’s TurboTax file, it immediately reported the new correct amounts for the year. I was then able to do an Amended Tax Return that took my tax bill from having to pay $250,000 to only owing $4,000 for the $40,000 in stock profit I made that year. You can see how profitable that can be.

Therefore, if you do have a stock account and do not wish to use an accountant, I highly recommend Quicken for your stocks and QuickBooks for your business accounts. It will help to take the guesswork out of preparing your return and still save you more than you would spend on an accountant. Once linked with TurboTax, you can finish all your taxes very quickly and efficiently, and even transmit your return online instantly.

To save even more money, remember that Quicken often has a free trial that will allow you to “try out” their program. Use the free trial during tax time with TurboTax, and you may just be able to avoid the fee for Quicken.

BOOKKEEPING MONEY-SAVING TIP # 13: Make Money With Your Website (Part 1)

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Believe it or not, when I first decided to start my own business seven years ago, I did not want to do bookkeeping.  I may be good at it, but I’ve never LOVED it (not like my Mom does).  Instead, I wanted to make “just enough money” so that I could stay home with my newborn daughter, and maybe do a bit of romance-writing on the side.  If that meant busting my behind and selling Mary Kay products to support my family, I was going to do it (even if I am a bit of a Tom Boy).

But then I thought, why sell only one product line?  Why not sign up at as many consultant companies as I can so that I could sell more products at “in-home shows” then just one line?  Logically, I could make more money because I would have more products to offer.  So I looked into Weekenders, Party Lite, Pampered Chef, Tastefully Simple, Avon, and a few others who I can’t recall at the moment.  I was bound and determined to join them all, and then start my own website to sell all those products and make even more money.  Who cared if selling the products from a personal website was strictly forbidden by all of these companies.  There were legal ways around that (like not actually naming the products on the website, but having the catalogs available to download).  And with Yahoo!’s SiteBuilder program, building my own website turned out to be no challenge at all.

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Instead, life took me down another road.  Someone referred a new client to me, and I ended up running my own company doing bookkeeping, research, and office administration.  But even though life took me down another road…I still had my website…and I was supplementing my income with that website.  It didn’t take much to realize that anyone can make money with their website – the key is just knowing how to do it.
Since there are a lot of ways to do this, and since I have way too much information in my head, I’m going to turn this into a mini-series.  I will post at least two methods per week you can use with your site to make even more income.

Here are the First Two Things I did to Supplement My Business Income:

  1. Affiliate Income: I first started with Affiliate Income.  Affiliate Income is basically putting other company’s ads on your website and then making a commission every time one of your customers or readers buys a product through that ad.  That other company basically writes it off as marketing dollars or sales commissions, and then sends you a 1099 at the end of the year so you can report it as income.  They don’t pay unless someone buys, BUT…you can make a fairly decent-sized commission on whatever is purchased – anywhere from 1% to 30% or even a flat fee.  The best part is, you also make money on every order YOU MAKE through your website.  While this may not be income, to get an extra 30% discount on products you buy through your website can obviously increase your profits quite a bit. 
    1. a. My Recommendation: I like Commission Junction.  The account is free, and there are thousands of companies you can choose from, as well as individual products you can display.  It’s a nice way to expand whatever your inventory without actually carrying an inventory…and you can choose products that complement instead of compete with your company’s products (like products you might not want to carry because they are too expensive).  Just think about the things your customers ask you for that you don’t carry, and then join those programs.  That way, you can direct them to your website, and then make money just for recommending where they find what they’re looking for.
  2. Blogging – The New Door-to-Door Salesman: A few years and a few thousand dollars later, I was really wanting to see what else I could do to make money online.  After all, my website was up 24 hours a day and could make money for me even when I was asleep.  I began reading about “blogging,” and I thought, “How Stupid…who would want to read someone else’s online diary? BORING!!!”  (I know…the irony…because on THIS blog, I write “Diary of a Bad, Bad Bookkeeper.”)  But as time ticked on, I began to see that everyone has a blog – including businesses.  Not only does everyone have a blog, but there are tons of professional bloggers out there making six figures a year from just having conversations with their readers.  To top it off, it’s a great way for your readers and customers to get to know you on a personal level, which will make them more likely to purchase from you later.  In other words, it’s the newest way to do door-to-door sales without actually leaving your office.  So, I added a blog to my website, and began looking for advice on how-to write and what-to write.  Soon, I was making an additional income that has a bit of a “Snowball Effect.”  The income starts out small, but over time, those blogs keep working for you, and eventually, you end up making quite a bit of money from each blog.  So, if you would like to know more about blogging, start here: 
    1. a. What to Blog About: No matter what you do, you have a special knowledge base.  Maybe it’s bookkeeping; maybe it’s scrapbooking.  Maybe it’s even operating a forklift on a steep hill or how to screw your ex in court.  Whatever it is, you have knowledge to share.  The key is to figure out what excites you, and then write about that.  Because the more excited you can get, the more excited your readers will be.  (If you’re still stumped, write about the things you tell your customers – the “Must-Know Information” you impart when they come to you…) 
      1. i.      To get blog-post ideas, start surfing the forums on LinkedIn, Facebook and even Yahoo! Answers.  The questions you find there should be enough to inspire you.
    2. b. How to Blog: If you want to be a blogger, I recommend you start reading Darren Rowse’s blog, ProBlogger.net.  He is my guru, and his book “31 Days to a Better Blog” is extremely helpful. 
    3. c. Where to Blog: If you want to start making money on your blogs right away, and getting people to actually come to your blog, there are a few places you can go.  I recommend the following sites.  (You may only make a few cents per month when you first start, but the more controversial or instructional your articles, the more money you will begin to make.) 
      1. GoFreelance.com
      2. Elance.com
      3. Triond.com
      4. Helium.com

Not only is blogging great for supplementing your income, but it also helps bring traffic and customers to your site.  So, if you don’t like to blog or want to blog, you can always get other people to blog for your site at places like EzineArticles.com.

So, there are my first two ways.  Come back next week for the next two.

BOOKKEEPING MONEY-SAVING TIP # 13: Turn Your Website into a Money Maker (Part 1)

Believe it or not, when I first decided to start my own business seven years ago, I did not want to do bookkeeping. I may be good at it, but I’ve never LOVED it (not like my Mom does). Instead, I wanted to make “just enough money” so that I could stay home with my newborn daughter, and maybe do a bit of romance-writing on the side. If that meant busting my behind and selling Mary Kay products to support my family, I was going to do it (even if I am a bit of a Tom Boy).

But then I thought, why sell only one product line? Why not sign up at as many consultant companies as I can so that I could sell more products at “in-home shows” then just one line? Logically, I could make more money because I would have more products to offer. So I looked into Weekenders, Party Lite, Pampered Chef, Tastefully Simple, Avon, and a few others who I can’t recall at the moment. I was bound and determined to join them all, and then start my own website to sell all those products and make even more money. Who cared if selling the products from a personal website was strictly forbidden by all of these companies. There were legal ways around that (like not actually naming the products on the website, but having the catalogs available to download). And with Yahoo!’s SiteBuilder program, building my own website turned out to be no challenge at all.

Instead, life took me down another road. Someone referred a new client to me, and I ended up running my own company doing bookkeeping, research, and office administration. But even though life took me down another road…I still had my website…and I was supplementing my income with that website. It didn’t take much to realize that anyone can make money with their website – the key is just knowing how to do it.

Since there are a lot of ways to do this, and since I have way too much information in my head, I’m going to turn this into a mini-series. I will post at least two methods per week you can use with your site to make even more income.

Here are the First Two Things I did to Supplement My Business Income:

1. Affiliate Income: I first started with Affiliate Income. Affiliate Income is basically putting other company’s ads on your website and then making a commission every time one of your customers or readers buys a product through that ad. That other company basically writes it off as marketing dollars or sales commissions, and then sends you a 1099 at the end of the year so you can report it as income. They don’t pay unless someone buys, BUT…you can make a fairly decent-sized commission on whatever is purchased – anywhere from 1% to 30% or even a flat fee. The best part is, you also make money on every order YOU MAKE through your website. While this may not be income, to get an extra 30% discount on products you buy through your website can obviously increase your profits quite a bit.

a. My Recommendation: I like Commission Junction. The account is free, and there are thousands of companies you can choose from, as well as individual products you can display. It’s a nice way to expand whatever your inventory without actually carrying an inventory…and you can choose products that complement instead of compete with your company’s products (like products you might not want to carry because they are too expensive). Just think about the things your customers ask you for that you don’t carry, and then join those programs. That way, you can direct them to your website, and then make money just for recommending where they find what they’re looking for.

2. Blogging – The New Door-to-Door Salesman: A few years and a few thousand dollars later, I was really wanting to see what else I could do to make money online. After all, my website was up 24 hours a day and could make money for me even when I was asleep. I began reading about “blogging,” and I thought, “How Stupid…who would want to read someone else’s online diary? BORING!!!” (I know…the irony…because on THIS blog, I write “Diary of a Bad, Bad Bookkeeper.”) But as time ticked on, I began to see that everyone has a blog – including businesses. Not only does everyone have a blog, but there are tons of professional bloggers out there making six figures a year from just having conversations with their readers. To top it off, it’s a great way for your readers and customers to get to know you on a personal level, which will make them more likely to purchase from you later. In other words, it’s the newest way to do door-to-door sales without actually leaving your office. So, I added a blog to my website, and began looking for advice on how-to write and what-to write. Soon, I was making an additional income that has a bit of a “Snowball Effect.” The income starts out small, but over time, those blogs keep working for you, and eventually, you end up making quite a bit of money from each blog. So, if you would like to know more about blogging, start here:

a. What to Blog About: No matter what you do, you have a special knowledge base. Maybe it’s bookkeeping; maybe it’s scrapbooking. Maybe it’s even operating a forklift on a steep hill or how to screw your ex in court. Whatever it is, you have knowledge to share. The key is to figure out what excites you, and then write about that. Because the more excited you can get, the more excited your readers will be. (If you’re still stumped, write about the things you tell your customers – the “Must-Know Information” you impart when they come to you…)

i. To get blog-post ideas, start surfing the forums on LinkedIn, Facebook and even Yahoo! Answers. The questions you find there should be enough to inspire you.

b. How to Blog: If you want to be a blogger, I recommend you start reading Darren Rowse’s blog, ProBlogger.net. He is my guru, and his book “31 Days to a Better Blog” is extremely helpful.

c. Where to Blog: If you want to start making money on your blogs right away, and getting people to actually come to your blog, there are a few places you can go. I recommend the following sites. (You may only make a few cents per month when you first start, but the more controversial or instructional your articles, the more money you will begin to make.)

i. GoFreelance.com

ii. Elance.com

iii. Triond.com

iv. Helium.com

Not only is blogging great for supplementing your income, but it also helps bring traffic and customers to your site. So, if you don’t like to blog or want to blog, you can always get other people to blog for your site at places like EzineArticles.com.

So, there are my first two ways. Come back next week for the next two.

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Bookkeeping Money-Saving Tip # 14: Making Money with Your Website (Part 2)

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In the last BOOKKEEPING MONEY-SAVING TIP # 13: Make Money With Your Website (Part 1), I discussed two ways that you can supplement your income with your business blog.  As promised, here is another tip that anyone can do to make money with their business website.  However, today I am only going to focus on one main money-making idea because it is such an important and valuable way to make money.  It is your business blog.  With a business blog, you are basically getting free advertising (for really only the cost of your time to write an article), you are creating a relationship with your customers (whether you know it or not), and you can build a community that will only help your business in the business world.  Here’s why the Business Website Blog is so important:

Blogging: If you haven’t noticed lately, one of the biggest trends going on in businesses today is blogging.  It seems like anyone and everyone has a blog, and even an eBook.  There’s a reason for that.  (In fact, there are multiple reasons for that.)  It’s one of the cheapest ways to advertise and to build lasting relationships with your customers – and since you’ll want to save money on advertising…

Having said that, here are some of the most profitable reasons to add a blog to your website:

  1. Blogging is the Sharing of Free Information AND a Person/Company’s Personality: I don’t care what anyone says – Companies have personalities.Maybe that personality is to be “a Big Bad Corporation” or maybe “an Environmentally-Friendly Non-Profit.”  Either way, there is a mission involved and a way that company has of sharing information.  Blogging is the best way for any person or company to share their personality and information, while also educating a customer about the products they sell.  It doesn’t necessarily matter what information you share or how you share it (i.e. words, podcasts, videos, etc.), so long as you share who YOU and your Company are in the process.
  2. Constant Blog Updates Lead to Lots of Traffic: New blog information should be added on average of once a week or more, which means the website is constantly changing.  Since the website and blog are constantly changing, people have a reason to return to the website again and again, which reminds people that there are products to buy.  Constant visits increase the likelihood of “Impulse Purchases, which obviously helps the company’s bottom line.  (On the other hand, websites without blogs are only visited when people are looking for something in particular to buy, which can end up being “rarely.”)
  3. Lots of Traffic Leads to Popularity and New Customers: The more often people visit your blog, the more popular your site will become.  The more popular your site, the higher your website will rank in a Search Engine’s Ranking List.  That means when a customer searches for your product, you have a better chance of being the website that Google or Yahoo! recommends.  The end result is that new customers will begin to visit your website as well, recommended both by your current customers, and the Search Engines.  And thus…
  4. New Customers Leads to New Additional Sales.
  5. Finally, Customers Will Keep Coming Back: As crazy as this might sound, people want to buy from people they know and feel comfortable with.  Even if they don’t buy from your website every time they visit, every blog you post cements you as an “Expert” in their mind, and someone they “just like.”  Thus, they will come to you first when they need advice regarding your industry or when they need your products.  Every blog – whether you make money right away or later – will lead to building customer relations and eventual sales.

Thus, if you haven’t started a business blog, you really need to consider it.  Especially because a blog is the best way to bring traffic to your site again and again, and it will help you make even more money later on.

Come back next week as I talk a bit more about adding Google Adsense to your blog, and how to use it correctly.

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Quick Note: In the month of September, I will be doing a very intense 30-day online workshop on How to Turn Anyone’s Business Blog into a Money-Making Blog. The intent is to teach people how to supplement their income no matter their industry. The cost is $20 for the online workshop, and everyone who joins will receive a $20 gift certificate to Elance.com so that they can hire help for any aspect of their business or website development.

If you would like to know more, you can click the “Workshop” tab above, or Click Here.

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