Smart Money Choice$

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.

We are already one-third of the way through the year. Have your revenue numbers been improving?

I came across some revealing stats recently that are quite eye-opening about what’s really going on with A LOT of small businesses. I made a quick video to show what the numbers are really telling us about what we need to be doing to turn it all around.

Click above to start video

This is important stuff for so many entrepreneurs. If you know someone who could benefit from this new information, by all means, go ahead and let them know about this video. They’ll appreciate it, and so will I!

www.CashFlowMasteryCourse.com

As an entrepreneur, what does this “new economy” mean for you and your business?

Do you have a plan? How are you doing so far with this year’s goals?

If you’re still trying to navigate in the right direction, that’s great! Even if the revenue numbers aren’t quite where you’d like them to be (yet), here’s a short video that I think you’ll enjoy. It helps to put things in the right perspective…

While this is definitely one of my favorite “feel good” videos, there are some key lessons here:

1. The greatest innovation and success happens when our back is against the wall and we are forced to find new ways for doing things.  And entrepreneurs are usually the ones blazing the trails to success

2. There are opportunities to seize (lots of them) by focusing on the positive vision of what your business could be. And the rewards belong to the thinkers and the doers (that’s YOU!) and not those with privilege or resources.

The new economy really means it’s our time to shine.

So what could you do TODAY to move one step closer to your vision for yourself and your business?

The major tax deadline of April 15th is quickly approaching for non-corporation businesses (sole proprietorships, partnerships and LLCs). Here are five quick tax-savings tips you don’t want to forget before the deadline arrives in all its glory.

1. Home Office Deduction

Generally, you can deduct business expenses that apply
to a part of your home if that part is exclusively used on a regular basis…

• -As your principal place of business,
• -As a place to meet with your patients, clients, or customers in the normal course of your trade or business, or
• -In connection with your trade or business if it is a separate structure that is not attached to your home.

This deduction includes both expenses that are directly related to your home office (painting, repairs, etc.), as well as a portion of your indirect costs, which include utilities for your whole house, mortgage interest or rent, real estate taxes, even depreciation on your home.

This can really add up to a substantial deduction.

And if you took the home office deduction last year, but couldn’t use it all (it’s limited by your business profit), you can also carry over any leftover deduction you couldn’t use last year and add it to this year’s deduction. (Check your 2008 Form 8829 and look to see if there is any carryover available for 2009 at the bottom of the form.)

The home office deduction is worth the trouble because it also reduces your self-employment tax amount.

Click here to get the details on how to take the deduction here:
IRS Instructions for Form 8829

2. Write off new equipment (Section 179 deduction)

Rather than depreciate business property over several years, you can choose to expense business assets in the year of purchase. Here are basic guidelines for what qualifies:

• Tangible property, like machines, equipment, furniture
• Off-the-shelf computer software

It does not apply to:

• Real estate
• Property used less than 50% in your business
• Property you inherited or received as a gift

You can “write off” (deduct as an expense) newly purchased assets up to $250,000 for 2009.

This is another smart deduction that helps to reduce both your income tax and your self-employment tax.

Click here to get all the specifics here:
IRS Instructions for Form 4562

3. Use Per Diem Rates for Business meals & incidental expenses while Traveling

As long as you can document your away-from-home business travel, you can deduct a per diem rate (per day) for meals and incidental expenses instead of the need to keep records of and report your actual expenses. This can give you a much bigger deduction if you spend less than the daily rate, not to mention it makes the recordkeeping easier.

Of course, you only get a 50% deduction on meals and entertainment for business purposes, but if you’re frugal, you will still get a much better deduction than you would with claiming actual expenses.

And, yes, this one reduces both income and self-employment taxes.

Click here to get all the specifics here:
IRS Publication 1542

4. Maximize your HSA Contributions

If you have a high-deductible health plan (HDHP) for your health insurance and a Health Savings Account (HSA) for your out-of-pocket medical expenses, you have until April 15th to make your 2009 deductible contributions. That’s up to $3,000 ($4,000 if you are over 55) for a self-only coverage plan, or $5,950 for a family coverage plan.

While this one won’t reduce your Self-employment tax, it is a nice deduction in addition to any self-employed health insurance deduction you can take for what you paid in insurance premiums on that high-deductible haelth plan. This winning combination makes 100% of your medical costs deductible, even if you do not itemize. That’s sweet.

Click here for all the specifics are laid out here:
IRS Publication 969

5. Maximize your IRA Contributions

If you have a traditional IRA, you can still make your 2009 contributions up until April 15, and still claim any deduction you are entitled to (usually for a traditional IRA as opposed to a Roth IRA) now. This is an especially smart choice because when you make contributions to your retirment accounts, you will likely also get the retirement savings contributions credit (depending on your income level, among other things). It’s one of the very few times you can legally get a double-dip for a deduction.

General traditional IRA contribution limits for 2009 are:

$5,000 ($6,000 if you’re over 50 or older) – there are, however, several factors that affect how much of your contribution is deductible.

As a self-employed person though, you may seriously want to consider opening a SEP-IRA, since this type of retirement plan allows you to make larger contributions and thus get bigger deductions on your tax return.

IRAs have lots of twists and turns, but if you already have one set up, or want to set up a quick traditional IRA (you can do this easily) and make a contribution for 2009, it’s just smart to max out your contributions and take the deduction for 2009 by April 15.

Click here to get all the ins and outs of IRAs here:
IRS Publication 590
IRS Publication 560

To keep your tax bill as low as possible, the smartest choice is to do your tax planning BEFORE the end of the year. But at least these tips will help you pay as little as legally possible right now for 2009, and then be all the wiser for 2010.

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.