My list of 101 goals was started on March 9, 2010 and is scheduled to be completed on December 4, 2012. I was inspired to make this list when I happened upon the Day Zero Project website. My list of specific and measurable goals (and my progress) can be seen at http://dayzeroproject.com/user/tonyennenga.

Montana Department of Revenue
P.O. Box 5835
Helena MT 59604-5835

You may also electronically file your W2 and 1099 documents using the State of Montana’s ePass service. ePass is an excellent method of conducting business with the State for many other purposes.

This information is accurate as of 2-6-2011, please visit http://revenue.mt.gov/forbusinesses/electronic_filing/annualtaxwhstatements.mcpx for more information. For more information about electronic filing with Montana using ePass, visit http://revenue.mt.gov/forbusinesses/electronic_filing/efilingw2and1099.mcpx.

1. First and most importantly, expect to run both the PC and Online versions until you confirm which version to use exclusively.

2. Expect to lose some settings, memorized reports, uploaded logos and customized invoice designs. Quickbooks Online will take you through interview questions that will restore many of the lost settings. It might be time for a new look anyway. Just plan to spend some time customizing and answering questions about your company, this will not be the same experience as upgrading from Quickbooks 2009 to 2010 for PC.

3. Price levels are unsupported in Quickbooks Online Plus. In order to support different price levels, the user must adjust each invoice individually or add more items to the list with the pre-set price levels already calculated. This would be a very easy work around for a service firm or a company with few items. Manufacturers, distributors or retails with hundreds of items and several prices levels will see their item list expand to a possibly unmanageable size.

4. Data entry is can be much slower. For instance, when posting a transaction to a sub account, Quickbooks Online will not allow pre-fill the data as you type.  The same goes for selecting a sub item while invoicing. In order to select the sub account or sub item, the user must either click the menu and scroll through the entire list or type enough into the field to populate the top-level item then switch to pointing device to select the sub item or account. The down-arrow key will not work. This can add some extra time for your AP and AR tasks.

5. Reporting is top-notch. Although my client’s memorized reports from Quickbooks Premier were lost during the conversion to Online Plus, it was not difficult to create new memorized reports. Quickbooks Online Plus can export to Excel, email in HTML or simply print. The ability to view reports online and easily share them is part of what makes migrating to SAAS accounting programs worth the effort. It’s now possible and easy for accountants, bookkeepers and executives to view the same dashboard no matter whether they are on the same LAN or VPN.
6. The multi-user access makes separation of duties and data sharing easy, smart and safe. Users can have access to only the part of the accounting system necessary to do their jobs and no more. In my experience, Quickbooks Premier and Enterprise lack user permissions that allow for the proper internal controls to survive scrutiny of a full audit, but compensating controls can sometimes be implemented. Multi-user access with customizable permissions including (as quoted from the QB add user menu):

Regular or custom user
You specify which areas of QuickBooks Online Plus this user can access.
Company administrator
Company administrators have all access rights within QuickBooks Online Plus. They also have all access rights for every other service your company subscribes to.
Reports only
This type of user logs into a special version of QuickBooks Online Plus that shows reports only. A Reports only user can access virtually all reports, except payroll reports and those listing contact information of customers, vendors, or employees. This user does not count toward your current user limit.
Time Tracking only
This type of user logs into a special version of QuickBooks Online Plus that only has time sheets. A Time Tracking only user can fill out and change his or her own time sheets (but not other users’ time sheets). This user does not count toward your current user limit.
Payroll only
This type of user has access to time sheets, paychecks, and liability payments. You’ll be able to set up this user after you finish payroll setup. How do I get to payroll setup?
Payroll only
This type of user logs into a special version of QuickBooks Online Plus that only has access to time sheets, paychecks, and liability payments. What exactly can this user do?

7. Quickbooks Online Plus works well with the Intuit Merchant Service and the Quickbooks Payroll module.

For this client, I have decided not to recommend Quickbooks Online Plus. Although promising, QB Online does not yet have the robust features for complex pricing, inventory, or fast data entry that my client requires. This client will likely remain a Quickbooks user until we make the upgrade to NetSuite or Intacct which are pricier but allow for more complexity.

I would definitely consider recommending Quickbooks Online Plus for clients with less complex inventory or pricing needs. Quickbooks Online has come a long way since it was launched and I expect many continuous improvements.

It is also possible to take a backup copy of the QuickBooks file from one computer and restore it to a second computer to allow sharing of the information. However, I don’t recommend this if both computers will be entering QuickBooks data. If you do this, you won’t know who has the most recent copy of the data file, and things can get messed up quite easily. Your best bet is to talk to a local computer consultant about a network for your home or office.

In order to use one company file with multiple users entering data, review Intuit’s Quickbooks reference guide on Multi-User Mode. Intuit’s reference guides can be found online at http://www.intuit.com.

House Republicans said Thursday that the health care overhaul will expand IRS authority by giving agents the power to verify acceptable health care coverage and fine or confiscate the tax refunds of Americans without coverage.

Republican members of the House Ways and Means Committee, a panel that oversees taxes and health issues, also charged that IRS audits will likely increase if health care legislation is passed. They added the IRS will require up to $10 billion to administer the new program. They also claimed the IRS may need to hire 16,500 additional employees.

“This dangerously expands IRS authority,” said Representative David Camp, (R., Mich.), the ranking Republican on the Committee on Ways and Means. “Most Americans will find it shocking and troubling.”

Here are the exceptions to the Federal 3 year guideline:

• The assessment period is extended to 6 years instead of 3 years if a taxpayer omits from gross income an amount that is more than 25 percent of the income reported on a tax return.
• The IRS can assess additional tax with no time limit if a taxpayer: (a) doesn’t file a return; (b) files a false or fraudulent return in order to evade tax, or (c) deliberately tries to evade tax in any other manner.
• The IRS gets an unlimited time to assess additional tax when a taxpayer files on an unsigned return.

If no exception applies to you, for Federal purposes, you can probably discard most of your tax records that are more than 3 years old; add a year or so to that if you live in a state with a longer statute.

Examples: Tony filed his 2008 tax return before the due date of April 15, 2009. He will be able to safely dispose of most of his records after April 15, 2012. On the other hand, if Tony filed his 2008 return on June 1, 2009. He needs to keep his records at least until June 1, 2012. In either case, Tony may opt to keep his records a year or two longer if his state has a statute of limitations longer than 3 years.

Please note that even if you discard backup records, never throw away your file copy of any tax return (including W-2s). The return itself provides data that can be used in future tax return calculations or to prove amounts related to property transactions, social security benefits, etc. You should keep certain records for longer than 3 years. These records include:

• Stock acquisition data. If you own stock in a corporation, keep the purchase records for at least 4 years after the year you sell the stock. This data will be needed in order to prove the amount of profit (or loss) you had on the sale.
• Stock and mutual fund statements where you reinvest dividends. Many taxpayers use the dividends they receive from a stock or mutual fund to buy more shares of the same stock or fund. The reinvested amounts add to basis in the property and reduce gain when it is finally sold. Keep statements at least 4 years after final sale.
• Tangible property purchase and improvement records. Keep records of home, investment, rental property, or business property acquisitions AND related capital improvements for at least 4 years after the underlying property is sold.

The Energy Conservation Installation Credit is a nonrefundable credit. A nonrefundable tax credit is one that can’t reduce the amount of tax owed to less than zero. If the credit were able to reduce the amount of tax owed to less than zero, the taxpayer would be entitled to a payment from the government, and would be called a refundable tax credit

According the the Montana Department of Revenue, the following items qualify for the credit:

• Insulation of floors, walls, ceilings and roofs in existing buildings
• Insulation in the floors, walls, ceilings and roofs of a new building, to the extent that it exceeds the current International Energy Conservation Code with Montana amendments as adopted by the Montana Department of Labor and Industry
• Insulation of heating and air conditioning pipes, insulation and sealing of heating, ventilation and air conditioning (HVAC) ducts, and insulation of hot water heaters and tanks
• Windows that result in a reduction of energy consumption
• Storm doors and insulated exterior doors
• Caulking and weather stripping of an existing structure
• Devices which limit the flow of hot water from shower heads and lavatories
• Heat recovery ventilators (HRV)
• Glass fireplace doors on existing fireplaces
• Exhaust fans to reduce air conditioning requirements
• Replacement of incandescent light fixtures with fixtures of a more efficient type such as those with electronic ballast and compact or linear fluorescent lamps and LED lights
• Lighting controls with cutoff switches to permit the selective use of lights
• Programmable thermostats
• Installation of new domestic water heaters, heating or cooling systems, so long as the new system uses energy more efficiently than the prior system

According the Department of Revenue, the following is a partial list of investments that do no qualify for the credit:

• Installing carpet
• Reshingling or repairing a roof
• Paint
• Replacing or repairing a failing foundation
• Siding with little or no insulation
• Portable air conditioners
• Space heaters
• Household appliances such as ENERGY STAR stoves, washers, dryers and refrigerators

1. The cost was incurred to operate an existing business in the same field as the one you entered into, and
2. The cost was incurred before the day your active business begins.

The following are start-up costs:

• Analysis or survey of potential markets, products, labor supply, transportation facilities, etc.
• Advertising costs for the opening of the business.
• Salaries and wages for employees who are in training as well as their instructors.
• Travel and other costs necessary to secure prospective distributors, supplies or customers.
• Salaries and fees for executives and for professional services.

Start-up costs do not include research and experimental costs, deductible interest or taxes.

Purchasing an existing business

Costs incurred in the course of a general search for a business or a preliminary investigation of a specific business are amortizable as start-up costs. These are the costs associated with the decision to acquire the business. Costs incurred in an attempt to purchase the business are capital expenses that cannot be amortized.

Here’s an example:

On April 16th, you hired me to assist you in the potential purchase of a coffee shop. I researched the industry, the local economy and the financial projections of a specific coffee shop. On July 1st, you prepared and submitted a letter of intent to the coffee shop owner. The letter stated that a binding commitment would result only after a purchase agreement was signed. I continued to perform professional services related to the research the business by analyzing the financial records of that coffee shop. On August 1st, you signed the purchase agreement with the owner of the coffee shop.

The costs of services provided by me before August 1st are amortizable as start-up costs while the costs of services provided by me on and after August 1st relate to the attempt to purchase the business and therefore must be capitalized.