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QuickBooks and Computerized Accounting
Computerized accounting has been around since the advent of computers. There have been many players but only a few have withstood the test of time. One of the biggest players is QuickBooks. QuickBooks origin was from the earlier checkbook program Quicken. It followed an natural progression from check register to a double entry accounting system in the late 1980’s.
Tom Carnes has been associated with QuickBooks since its inception and has witnessed the multitudes of progressive versions. QuickBooks is an open file architecture database system. In other words each entry is piled upon the earlier entries and requires the computer to review all prior entries during operation. Other computerized programs, such as PeachTree, enable period closing allowing the computer to access the prior period closing trial balance plus current entries. This difference means that QuickBooks will begin to slow down with time that may lead to issues during operations.
With all of the evolution of automated accounting systems, hardware compatibility can become an issue. Programmers tend to utilize the latest bells and whistles available with the latest computer chips thus bogging-down older chips. This can lead to frustration of the user and/or management. Keeping-up with technology is a must in both software and hardware.
Carnes Company CPA’s have been using QuickBooks for decades. We offer personalized training and consulting. Our professionals understand accounting and can assist with your needs whether it be correcting errors, extensive general ledger adjusting entries, or payroll help. We are here to help you when needed.
Finally, it must be pointed out that automating your accounting functions can lead to gross failure if it not maintained, operated within the knowledge of user, and used as a tool to meet an end not a means to an end. It will not run your company, it will not tell you the future nor will it advise you when it is wrong.
Taxes, Taxation and Planning
There is more to taxes than preparing returns. Just plugging numbers on a tax form is not enough. Your tax professional needs to understand the numbers. Their knowledge should include the reason where it should be posted, why it is necessary, and finally know that it is right.
Income taxes are complex and confusing and should not be attempted by those who cannot take the time to study them. Federal taxation had seen a vast change since the last rewrite of 1986. Since then Congress, the Courts, and the Internal Revenue Service have added to and/or changed a multitude of provisions. Lack of experience for understanding these mountainous code sections and their respective regulations, rulings and court orders can leave the naïve in the dust.
Planning for your taxes is a must for those who have greater than average incomes and/or unusual circumstances. Planning prepares you for the impact of actions out of your control and may provide opportunities to lessen your tax liabilities through strategic action. Meeting with your tax advisor within a reasonable time before your tax year-end allows you to take actions found during your planning meeting. Remember, no one plans to fail… they just fail to plan.
Our professionals spend large amounts of time in education and research of taxation. As a CPA firm, we pride ourselves at maintaining a higher understanding the corresponding tax laws. You expect it and you should. We base most of our annual education budget on tax issues. But it does not stop there. We also continue to increase our knowledge of accounting and technology because failing to keep up is not acceptable.
Ultimately, the taxpayer’s obligation is not to pay the most taxes but only what is legally required.
Bookkeeping, Accounting and Financial Statements
We often hear comments from our banking friends about the accuracy and consistency of financial information that they receive from their customers. Most often they are given financials and tax returns that do not correspond to each other. In today’s rigorous regulatory environment financial institutions are faced with oversight by both the government and/or private auditors. Differences have to be explained and if they are not chances are the banker will face sanctions which will filter down to the particular bank customer.
It is the policy of Carnes Company CPA PC to be more diligent in preparing books of account and the related accounting and/or financial statements. In doing so, both the books of account, financial statements and/or tax returns will match accordingly. No one is being fooled more than business or individual when due diligence is not maintained. Lacking accuracy jeopardizes their banking relationships and may lead to financial difficulty. We follow best practices of our profession and will continue so in the future. We owe you our best effort regardless.
We offer bookkeeping, accounting and financial statement preparation as a core to our business. Although we do not offer auditing services, we work with our clients to help keep audits manageable. We welcome questions regarding these services any time.
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