If you are using any version of QuickBooks 2007 (or older), you need to pay attention to this.

Effective May 31, 2010, Intuit (the makers of QuickBooks financial software) will discontinue live telephone support and add-on services for QuickBooks 2007 software (all versions).

Services that will be discontinued:

Assisted Payroll
Basic Payroll
Enhanced Payroll
Standard Payroll
Employee Organizer
Merchant Service
Billing Solution (formerly QuickBooks Online Billing)
QuickBooks Email
Bill Pay
Online Banking
Terminal Download
Technical Support Plans and Services

This is not really surprising news, since according to Intuit’s official Discontinuation Program, they only support “the most current version of QuickBooks, plus the prior two versions.” So that means after May 31st, QuickBooks 2010, as well as all 2009 and 2008 versions, are the only years they will continue to support.

Do I HAVE to upgrade?

That depends on how you use the software.

If you are currently using an older version of QuickBooks and do not need any technical support or add-on services, you can continue to use the software as you have in the past. It will keep working just fine.

However, if you need to use add-on programs and support for services such as payroll or merchant services,  you will need to install and register a supported version of the QuickBooks software by May 31, 2010.

But what if I don’t know which version of QuickBooks I’ve got?

That’s easy. If you don’t see which version you have on the “splash” screen when you are opening QuickBooks, then from within the program simply press Ctrl+1 (from the keyboard, not the number pad) and you will get all the information about your current QuickBooks program, including which version you’re using.

An important reason to upgrade if you’re still using QuickBooks 2007 (or older) is because even though Intuit promises to help you out if you lose your keycodes or have licensing issues, their terms and conditions say they will do so only “if that data is available.” In other words, there’s no guarantee they can help you if you are still using an old unsupported version, and you lose your password, have data recovery issues, or need a replacement software CD.

This is significant.

If you are locked out of your data file because you’ve lost your administrator’s password, or you can’t get into your program because of a registration issue, you’re dead. Not being able to access your financial records could literally cripple your business.

But if you are determined to stick with an outdated version of QuickBooks and you do happen to lose your password, you can use the Automated Password Reset Tool available for free on the QuickBooks website. But of course, there’s no guarantees there either. You are still on your own.

If, however, you are ready to give in and upgrade, here are my best suggestions.

Your Upgrade Options

You can, of course, upgrade directly through the Quickbooks website and get a $40 discount (as of this writing, the upgrade price is $159.95)

But you quite likely can get a better price by shopping around a bit. Generally you’ll find QuickBooks at all the major office supply stores locally and online. Amazon is currently selling QuickBooks Pro 2010 for $123.

Some other places you could check out are:

www.staples.com
www.officedepot.com
www.officemax.com
www.bestbuy.com
www.costco.com
www.samsclub.com

And if you are a real bargain hunter, you might be able to find a legal copy of a supported version (QuickBooks 2008 or 2009) on eBay. But realize that you’ll be in the same pinch in another year or two.

So my best suggestion is to just bite the bullet and upgrade to 2010 and be done with it (for three years anyway). There are some great new, truly helpful features you’ve been missing out on in the years you’ve fallen behind.

Getting Up To Date Using QuickBooks

For quick and free mini-lessons in QuickBooks, make sure you get in on my QB QuickTips video series.

And if QuickBooks has always been a struggle for you, why not go all out and get some proper training on using the program more easily and efficiently? I’ll teach you all the must-know functions in QuickBooks in my QuickBooks Core Training course. (The next class starts this coming Monday, May 24th.)

If you are upgrading from QuickBooks 2005 or older, training is especially recommended for you, since QuickBooks is practically a whole new program since that far back. it won’t be an easy transition without some assistance.

Most businesses have at least a few ways to accept payment from their customers. It may be in the form of collecting cash, debit or credit cards, or by check, either up front, at the time of delivery of the product or service, or sometime after the sales transaction has been completed.

But more and more businesses, like everything else, are collecting their payments online as well. How about you? Have you jumped on the online business bandwagon yet?

On the Internet, nearly everything is faster. Collecting your money online is no exception. And that’s a great reason to accept payment from your clients online as well.

What Are Your Options?

Being paid for products you sell can be handled with the help of an online shopping cart. Payment is usually made using a credit or debit card, and products are delivered either electronically or via postal mail.

And now, even if you sell services, you can make it very easy and convenient for your clients to pay you too. In fact, with online services like PayPal, you don’t even need to have your own merchant account to accept credit cards and electronic checks.

But the latest development I’ve stumbled upon for collecting your money online is a new, free service provided by Intuit, the makers of QuickBooks. It’s called Intuit Billing Manager.

It is an ideal service for service professionals who are just getting their business rolling. While I’m obviously an advocate of keeping complete bookkeeping records, using a program like QuickBooks to handle both your bookkeeping and your invoicing function, if you want to just jump in and get your business rolling and pulling in payments from your  clients, this is an easy and economical way to do it.

How Does It Work?

Now I’ll tell you up front, this free online billing solution is Intuit’s way to entice you to sign up for their Merchant Services. But it’s certainly not necessary to sign up for a merchant account, and they really are making it easy for the little guy or gal who operates what they call a “micro-business” to get their billing organized and functioning well – for free.

As the name implies, it is a way to create and manage your invoicing. With a free account you can…

• Easily create professionally designed estimates, invoices and billing reminders

• Print out your invoices for postal mailing, or send them by email

• Manage your customer information

• Use the service from anywhere you have web access, including an iPhone

If you want to accept credit card payments or electronic checks, you will need to upgrade to their merchant services for Billing Manager, but as of this writing, the rates are more reasonable than a regular Intuit Merchant Services account, with all the capabilities needed for a very small business.

If you’re just getting your business going, or if it has been a challenge for you to get your invoicing done and keep them organized, I highly recommend you use this new online billing program.

You can’t beat the price, and it really doesn’t appear that there are any sneaky back-door ways for them to suck you into a commitment you don’t want down the road. But when you are ready for a full-fledged bookkeeping program, you can easily export your Billing Manager information into QuickBooks Online Edition and grow from there.

And of course, the sooner you get your invoices sent to your clients, especially if it is handled via the Internet, the quicker you will get your money. And in this economy, faster cash flow is what will grow a stable business that lasts.

By the way – If you want more tips on not only maximizing your Accounts Receivable procedures, but kick-butt strategies for maximizing your business cash flow in the new economy. Go to the Cash Flow Mastery course website now.

Bonus Resources

Review of Intuit Billing Manager by PC Magazine

Intuit Billing Manager Fact Sheet (2009) – Please note that the services included in a free account have been expanded since the publication of this fact sheet.

It’s Gabrielle Fontaine with a heads-up critical update for everyone currently (or formerly) using QuickBooks software.

Intuit, the company that makes QuickBooks, just announced that there is a potential security risk that has been found that would allow hackers to access the data on your computer.

The threat is due to a newly discovered vulnerability in Microsoft’s ActiveX technology, which is commonly used by many popular computer programs.

===================================
QuickBooks Versions Affected By The Threat
===================================

All QuickBooks Simple Start, Pro, Premier and Enterprise Solutions versions, 2009 and older (including trial versions) are vulernable.  The new QuickBooks 2010 versions, however, are not affected.

Intuit updates its currently supported versions from time to time by releasing software patches. Each update or patch is given a “Release” number for easy identification.

Right now, downloading Intuit’s updates is the only immediate way to eliminate the vulnerability in currently supported versions of QuickBooks. In time, Microsoft will likely release a patch with
their regular security updates for ActiveX.

===================================
How To Protect Your Computer Now
===================================

All QuickBooks users of 2007, 2008 and 2009 versions should verify that they have downloaded and installed the most current updates.

You can check if your software is up to date by opening QuickBooks and then using the F2 key.

These are the most current updates that include a patch which eliminates this new threat:

QuickBooks 2009 – R8
QuickBooks 2008 – R10
QuickBooks 2007 – R13

The best way to stay up to date is to enable the automatic update feature AND to install those updates when prompted.

You can also manually download the latest updates directly from the QuickBooks website.

http://support.quickbooks.intuit.com/support/productupdates.aspx

===================================
If You Are Running QuickBooks 2006 or Older….
===================================

If you are running QuickBooks 2006 or older, you are vulnerable to this security threat. Since these versions are no longer supported by Intuit, there is no downloadable update. Your best defense is to upgrade your QuickBooks software to a supported version (2007-2009)
as soon as possible.

You can find both 2009 and the newest 2010 versions on amazon.com

Additionally, if you have an older version of QuickBooks installed on your computer but it is no longer in use, remove it by uninstalling the program to remove the ActiveX threat.

===================================
If You Are Running a Non-US Version of QuickBooks….
===================================

For Canadian versions of QuickBooks, you can download the updates directly from the Intuit website:

http://support.intuit.ca/quickbooks/en-ca/kb/update/update-quickbooks-to-new-product-update/Update_main.html

For UK versions of QuickBooks, you can download the updates directly from the Intuit website:

http://support.intuit.co.uk/quickbooks/en-gb/kb/update/update-quickbooks-to-new-product-update/Update_main.html

===================================
I’ve Made a Video to Show You Exactly What to Do
===================================

As an Advanced Certified QuickBooks ProAdvisor, I want to see you get the most out of your QuickBooks software. That’s why I created my free video training blog, QB QuickTips.

My latest video post walks you through each of the steps outlined above to show you exactly how to protect yourself from this new ActiveX threat.

If you want to stay informed about critical updates for QuickBooks like this one, as well as learn insider tricks and tips on how to use this powerful software for your business success, be sure and
sign up for the QB QuickTips notification list.

You’ll also receive private, subscriber-only bonuses that are not even posted on the blog.

Get your free subcription here:

===> http://www.QBQuickTips.com

Are you having fun? They say that time flies when you are. The fact that April 15th has nearly arrived and has caught a lot of people by surprise, must mean there’s a lot of fun going on! That’s the positive spin, anyway.

If you are one who had intended to have your taxes handled by now, but you still haven’t gotten to it, no worries. That’s why the IRS allows you to apply for an automatic 6-month extension to file. They realize that time can get away from us all. That is, at least when it comes to preparing your tax return. But the empathy stops there.

By filing a Form 4868, yes, you will automatically get six more months to FILE your tax return. No questions asked. However, there is no such thing as an extension to pay any taxes owed.

Of course, that’s just more proof of how whacked our tax system is. Isn’t the purpose of preparing a tax return to determine whether or not you have paid enough taxes in based on the amount of your income that’s subject to tax? So if you already knew the answer to that question, why would you need to file an extension in the first place!?! Typical governmental circular reasoning, isn’t it?

But fortunately, there are easy ways to deal with this dilemma.

How to Do It

First, you need to fill out and file the automatic extension form (Form 4868). You can do that for free online using the IRS’s FreeFile system. But if you prefer the old fashioned send-it-in-the-mail method, you can also fill out a PDF version of the form, print it out, and mail it in if you like. Just be sure it is postmarked by April 15th.

However, it is actually safer and more reliable these days to file for extension online. You will receive a confirmation from the IRS usually within 24 hours, giving you proof that your form has been filed successfully. But when you file by paper, you’ve just got to hope that it gets there safely AND that the IRS doesn’t lose it. (The IRS loses paperwork on a regular basis!) The only way you’ll know if they got it or not is if you don’t get any nasty notices from the IRS later asking you for your tax return.

My recommendation: File electronically if at all possible.

What Information Do You Need?

Fortunately, Form 4868 is the shortest and quickest tax form you’ll ever need to use! Heck, once you fill in your name, address and social security number, you’re half-way there!

After that, there are only four other lines you will need to fill in (in most cases). The toughest one is Line 4, where you must estimate your taxes for 2008. Of course, you won’t know that number for sure until you actually complete your tax returns. So we’re talking about your best guess here.

But you’ve got to make it a good guess. If you say you owe less in taxes than you really do, the IRS will smack you with underpayment penalties and interest. Remember, this is an extension to file, not one to pay.

There are, however, a couple fast and dirty ways to estimate smart.  Probably the easiest way is to take a look at last year’s tax return. If you made around the same income in 2008, your tax liability should be roughly the same. And even if you made more, you won’t be penalized for underpaying as long as you pay 100% of your 2007 tax liability. So, to be safe, if you really have no idea what your 2008 taxes will be, enter 100% of your taxes were last year (“total tax” Line 63 of your 2007 Form 1040).

Next you’ll need to fill in how much you’ve already paid in for 2008. Add up all federal estimated tax payments you’ve made, any overpayments applied to 2008 from last year, as well as taxes withheld from your W-2 or 1099 forms. The total should be entered on Form 4868 Line 5.

Finally, subtract the amount you’ve already paid in from the estimated tax liability, and you’re probably done. That is, if you paid in more than the tax. If that’s the case, all you need to do is file this form before midnight on April 15th. You now have until October 15, 2009 to finish up and file your tax return. Isn’t that a relief?

But What If You Didn’t Pay In Enough?

If, you have a balance due, you will need to pay that amount by April 15th. Again, you can do this by paper or electronically. When you file the Form 4868 online, you will be given instructions on how to make your payment. Again, you can do so electronically, use a credit card or by mailing in a check.

What If You Can’t Pay The Full Balance Due?

If you can’t pay the full balance due, simply pay as much as you can right now, and enter that amount you are paying on Line 7 of Form 4868.

The IRS will eventually send you a bill for the rest, including late payment penalties and interest. But don’t sweat it just yet. Remember the balance due is based on an estimate only. The final numbers will be known once you complete your tax return, so it might not be as bad as it may seem now.

Just be sure to send in Form 4868 by April 15th. And if you owe a payment, don’t delay filing the form. That will only cost you more. The smart choice is to file for an automatic extension on time.

Now you can breathe a sigh of relief because you now have six more months to get your taxes in order. That wasn’t so bad now, was it?

~Gabrielle

P.S. If you still need to get your bookkeeping records in shape for completing your taxes, and you use QuickBooks, be sure to check out the time saving tip for quick and easy tax prep at QB QuickTips and check out my latest mini-lesson that will make QuickBooks do a lot of the tax organizing for you this year, and you may never need to go on extension again.

Many people have never heard of Use Tax, but it could be a tax that just might jump up an bite you!

Use Tax is not something new. It has been around as long as it’s much more famous brother, Sales Tax. Generally, Use Tax is paid to states that charge Sales Tax. The purpose of Use Tax is to equalize the Sales Tax burden between in-state and out-of-state purchases. Sales Tax and Use Tax go hand-in-hand.

Everyone knows that you must pay Sales Tax at the time of purchase to a vendor selling a taxable product in that state. The reason  is because it is presumed you will use what you’ve bought in that same state.

If, however, you make purchases in a no-tax state, and then cross the state lines and use your purchase in a state that charges sales tax, or you make your purchase through mail order or on the Internet, they are generally not required to collect sales tax from you. (That is, if they don’t have a presence in your state.) On significant purchases, most people consider this as a savings. By law, it shouldn’t be.

As you might imagine, it is nearly impossible (at present) for a state to require an out-of-state vendor to collect sales taxes if they do not operate any part of their business in that state. Those vendors are outside of the state government’s jurisdiction.

Therefore, Use Tax is expected to be paid by the one making the purchase; the one who will USE the taxable product in that state. Hence, the name, Use Tax. Though that’s the law, it has been near impossible to enforce, since there is no way for the state taxing authorities to know what is being purchased and brought into the state.

However, in theory, Use Tax is a significant source of state revenue for states that charge Sales Tax. But because of the difficulty of enforcement, it has largely gone uncollected. Until now.

With the rapid growth of Internet sales, this potential source of revenue has become more than substantial and the taxing agencies know it. Therefore, these states are starting to collaborate to come up with ways to pull in the “extra” revenue.

Guess who the taxing agencies are targeting first? Yep, businesses. Especially businesses who are already registered to collect sales tax. At this point, they are attempting to threaten a full-scale audit if “voluntary compliance” is not adhered to by businesses who are collecting sales tax.

The states knows businesses are buying taxable products across state lines, as well as via the Internet, just like everyone else. So if these businesses are not reporting Use Tax with their Sales Tax returns, they’ve got them. Several states are sending out letters asking businesses to start reporting out-of-state and Internet purchases from now on. These “requests” are laced with a threat of future audits for non-compliance.

Use Tax applies to purchases that are shipped to you from another state and consumed by your business. It does not apply to purchases you make for resale.

If you are already collecting Sales Tax, it may be in your best interest to start tracking your out-of-state purchases made for your business and remitting your fair share of Use Tax. In most cases, this will not be a large additional expense, and it will help you to stay under the radar of your state’s tax collector’s blood hounds.

If you have already received a notice that you are expected to pay Use Tax, do you have a reliable method of tracking the applicable transactions? QuickBooks, of course, can make it easy.

You may want to check out the video tutorial I just posted on my FREE QuickBooks training blog. It shows a couple insider tips to save you time and minimize the sting of paying yet another tax that bites into your bottom line.

WANT TO USE THIS ARTICLE IN YOUR OWN BLOG OR E-ZINE? You have permission to re-publish it, as long as you include the following author’s bio and link:

Gabrielle Fontaine, PB is a freelance Professional Bookkeeper and Certified QuickBooks ProAdvisor. She specializes in assisting Internet-savvy entrepreneurs to get control of their books and maximize profits. Gabrielle also publishes the business-boosting online ezine, Smart Money Choices. Get more information at http://www.BookkeepingDirect.com

With the end-of-the-year busy season already under way for bookkeepers and tax professionals, there’s a lot swirling around here! But I wanted to be sure and get the lastest QuickBooks video out to you before we run out of month!

So here’s my latest little QuickBooks video that explains what QuickBooks is doing behind the scenes with your Retained Earnings, and a discussion on the pros and cons of closing your year in QuickBooks (even though it’s not required).

Click here to view the video theatre style –>QuickBooks Video

Enjoy!

~Gabrielle