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Minutes Matter

Are Your Taxes Ready?

It is that time of year again, Tax Time! For some people this time of year can be very stressful. But for the people that have their accounting in QuickBooks they can be ready to send documents to their accountant in a hour or two. If you are one of the people that does not have ALL of your accounting in QuickBooks consider changing your accounting practices for 2007. One thing we all have in common is the fact that everyone has to file taxes with IRS.

Below are some things to do and reports to print for your 2006 year end taxes. Make sure you generate your reports on a cash basis if that is how you report taxes to IRS.

First, if you have inventory, you will need to physically confirm your quantity on hand for any inventoried items. After the count has been determined then confirm that your QB figures match the physical count. If you stock lining by the bolt, make a visual estimate of the remaining lining on the bolts and enter the estimated amounts in QB. Make any necessary inventory adjustments in QB; click Item List > Activities > Adjust Quantity/Value on Hand.
Next create a Profit & Loss Report; Click Reports > Company Financial > Profit & Loss Standard. Study the listed accounts in the report; hover over an account and double click to produce a Quick Report and make sure transactions are in the appropriate accounts. If you find a transaction in the wrong account, reassign the transaction to the appropriate account.
Hover your mouse over and double click to zoom in on any accounts for Fixed Assets, Equipment, Tools or any accounts that your accountant might want to depreciate. Print these individual reports. TIP: Be sure to stretch the columns on the report allowing all text to be displayed.
Once you have confirmed that your Profit & Loss Report is in order, generate a Balance Sheet. Click Reports > Company Financial >Balance Sheet Standard.
If you have an office or run a workroom out of your home you may need to give totals for utilities to your accountant. The accountant will calculate the correct percentage you can deduct on your taxes.
Calculate your mileage for 2006 and give that figure to your accountant.
Another function QB recently added is the ability to measure your company's profitability. Click Company > Planning & Budgeting > Decision Tools > Measure Profitability. This tool will show you if profit is increasing and track how the relationship between income and expense changed over time.
I also recommend setting a closing date in QB. Click Edit > Preferences > Accounting >click Company Preferences tab> click Set Date Password enter a closing date of 12/31/06.
Lastly, back up your QB file to a disk and label it 2006 taxes.

You can also visit the IRS website and check out the tax changes for 2006.

QuickBooks & Quoting 7.1 will help you learn QuickBooks faster and use it more efficiently. We have created a 200 page manual which covers all aspects of QuickBooks for designers and window treatment professionals. With our system you receive both the quoting ability and the manual for one price. Watch our short video (the video can take a few minutes to load) to see just how easy it is to use. The video also demonstrates how and why you should use Group Item Codes when you are creating a proposal.

FREE Webinars QuickBooks & Quoting 7.1 - If you would like to see and hear more, join us for one of our free Webinars. The Webinars are approximately 30 minutes in length.

Seminar for IWCE in Washington, DC - April 12, 2007. We will be conducting a three-hour seminar entitled "Learning QuickBooks." To attend, sign up at on the Window Fashions website.

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