1. Newsletter Subscribe To Our
Emailed Newsletter
Our regularly updated newsletter provides timely
Email:
articles to help you achieve your financial goals.
Please come back and visit often. Submit
Print This Page
Previous Issues Of Our Newsletter
August 2009
Feature Articles
• Cash Flow - The Pulse of Your Business
• Planning Retirement Withdrawals
• Credit Reports: What You Should Know
• Paying Off Debt the Smart Way
Tax Tips
• Tax Benefits for Job Seekers
• What to do if You Haven't Filed Your 2008 Return
• Basic Hints to Help New Small Business
• Seven Tips for Students with a Summer Job
QuickBooks Tips
• Save Time for Summer by Memorizing Transactions
Financial Planning Tips
• Prepare a Post Mortem Letter
• Get Your Social Security Statement of Benefits
• Review Your Budget vs Actuals for July
2. • Estimate Your Tax Liability
This newsletter is intended to provide generalized information that is appropriate in certain
situations. It is not intended or written to be used, and it cannot be used by the recipient, for the
purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of
this newsletter should not be acted upon without specific professional guidance. Please call us if
you have questions.
Cash Flow - The Pulse of Your Business
Many small business owners do not fully understand their cash flow statement,
This is a shocking fact considering that all businesses essentially run on cash, and
cash flow is the life-blood of your business.
Some business experts go so far as to say a healthy cash flow is even more
important than your business's ability to deliver its goods and services! You may
find that perspective hard to swallow, but consider this - if you fail to satisfy a
customer and lose that customer's business, you can always work harder to please
the next customer. But if you fail to have enough cash to pay your suppliers,
creditors, or your employees, you're out of business!
What Is Cash Flow?
Cash flow, simply defined, is the movement of money in and out of your business;
these movements are called inflow and outflow respectively. Inflows for your
business primarily come from the sale of goods or services to your customers. The
inflow only occurs when you make a cash sale or collect on receivables, however.
Remember, it is the cash that counts! Other examples of cash inflows are borrowed
funds, income derived from sales of assets, and investment income from interest.
Outflows for your business are generally the result of paying expenses. Examples
of cash outflows include paying employee wages, purchasing inventory or raw
materials, purchasing fixed assets, operating costs, paying back loans, and paying
taxes.
Note: An accountant is the best person to help you learn how your cash flow
3. statement works. Please contact us and we can prepare, if needed, and explain
where the numbers come from in your cash flow statement.
Cash Flow Verses Profit
Profit and Cash flow are two entirely different concepts, each with entirely
different results. The concept of profit is somewhat broad and only looks at income
and expenses over a certain period of time, say a fiscal quarter. Profit is a useful
figure for calculating your taxes and reporting to the IRS.
Cash flow, on the other hand, is a more dynamic tool focusing on the day-to-day
operations of a business owner. It is concerned with the movement of money in and
out of a business. But more importantly, it is concerned with the times at which the
movement of the money takes place.
Theoretically even profitable companies can go bankrupt. It would take a lot of
negligence and total disregard for cash flow, but it is possible. Consider how the
difference between profit and cash flow relate to your business.
Example: If your retail business bought a $1,000 item and turned around to sell it
for $2,000, then you have made a $1,000 profit. But what if the buyer of the item is
slow to pay his or her bill, and six months pass before you collect on the account?
Your retail business may still show a profit, but what about the bills it has to pay
during that six-month period? You may not have the cash to pay the bills despite
the profits you earned on the sale. Furthermore, this cash flow gap may cause you
to miss other profit opportunities, damage your credit rating, and force you to take
out loans and create debt. If this mistake is repeated enough times you may even go
bankrupt!
Analyzing Your Cash Flow
The sooner you learn how to manage your cash flow, the better your chances for
survival will be. Furthermore, you will be able to protect your company's short-
term reputation as well as position it for long-term success.
The first step towards taking control of, and properly managing your company's
4. cash flow is to analyze the components that affect the timing of your cash inflows
and outflows. A thorough analysis of these components will reveal problem areas
that lead to cash flow gaps in your business. Narrowing, or even closing, these gaps
is the key to cash flow management.
Some of the more important components to examine are:
• Accounts Receivable. Accounts receivable represent sales that have not yet
been collected in the form of cash. An accounts receivable is created when
you sell something to a customer in return for his or her promise to pay at a
later date. The longer it takes for your customers to pay on their accounts,
the more negative affects there will be on your cash flow.
• Credit terms. Credit terms are the time limits you set for your customers'
promise to pay for the merchandise or services purchased from your
business. Credit terms affect the timing of your cash inflows. One of the
simplest ways to improve cash flow is to get customers to pay their bills
more quickly.
• Credit policy. A credit policy is the blueprint you use when deciding to
extend credit to a customer. The correct credit policy is necessary to ensure
that your cash flow doesn't fall victim to a credit policy that is too strict or
to one that is too generous.
• Inventory. Inventory describes the extra merchandise or supplies your
business keeps on hand to meet the demands of customers. An excessive
amount of inventory hurts your cash flow by using up money that could be
used for other cash outflows. Too many business owners buy inventory
based on hopes and dreams instead of what they can realistically sell. Keep
your inventory as low as possible.
• Accounts payable and cash flow. Accounts payable are amounts you owe
to your suppliers that are payable sometime within the near future, "near"
meaning 30 to 90 days. Without payables and trade credit you'd have to pay
for all goods and services at the time you purchase them. For optimum cash
flow management, you'll need to examine your payables schedule.
Some cash flow gaps are created intentionally. That is, a business will sometimes
purposefully spend more cash to achieve some other financial results. For example,
a business may purchase extra inventory to take advantage of quantity discounts,
5. accelerate cash outflows to take advantage of significant trade discounts, or spend
extra cash to expand its line of business.
For other businesses, cash flow gaps are unavoidable. Take, for example, a
company that experiences seasonal fluctuations in its line of business. This business
may normally have cash flow gaps during its slow season and then later fill the
gaps with cash surpluses from the peak part of its season. Cash flow gaps are often
filled by external financing sources. Revolving lines of credit, bank loans, and trade
credit are just a few of the external financing options available that you may want
to discuss with us.
Monitoring and managing your cash flow is an important task to perform in order
to ensure the vitality of your business. The first signs of financial woe will appear
in your cash flow statement, giving you time to recognize a forthcoming problem
and plan a strategy to deal with it. Furthermore, with periodic cash flow analysis,
you can head off those unpleasant financial glitches by recognizing which aspects
of your business have the potential to cause cash flow gaps. With cash flow
management and analysis, you will be able to plan on how you're going to direct
your cash surplus with assurance that you will have adequate funds to cover day-to-
day expenses.
Planning Retirement Withdrawals
If you are thinking of retiring soon, or changing jobs, you may face a major
financial decision: what to do about the funds in your retirement plan. This article
will discuss partial withdrawals and full withdrawals.
Note: As you will see, the rules on retirement withdrawals are quite complex. They
are offered here only for your general understanding. Please call us before taking
withdrawals or making other major changes in your retirement plan.
Take a Partial Withdrawal
Partial withdrawals are withdrawals that aren't the rollovers, annuities or lump
6. sums. Because they are partial, the amount not withdrawn continues its tax shelter,
see below.
A partial withdrawal will usually leave open the option for other types of
withdrawal (annuity, lump sum, rollover) of the balance left in the plan.
Note: Before retirement, partial withdrawals are fairly common with profit-sharing
plans, 401(k)s, and stock bonus plans. After retirement, they are fairly common in
all types of plans (though least common with defined-benefit pension plans).
Tax Planning. A partial withdrawal is taxable (and can be subject to the penalty
tax on withdrawals before age 59 1/2) except to the extent it consists of after-tax
contributions, such as nondeductible IRA contributions. The withdrawal is
generally tax-free in the proportion the after-tax investment bears to the total
retirement account.
Example: Your retirement account totals $100,000, which includes an after-tax
investment of $10,000. You withdraw $5,000. The withdrawal is tax-free to the
extent of $500 ($10,000 / $100,000 x $5,000).
Note: The tax-free portion is computed differently for plan participants who were
in the plan on 5/5/86.
Preserving the Tax Shelter. Your funds grow sheltered from tax while they are in
the retirement plan. So the longer your financial situation lets you prolong the
distribution - or the smaller the amount you must withdraw - the more your assets
grow. Some taxpayers choose to defer withdrawals for as long as the law allows to
maximize assets and shelter them for the next generation.
The law has specific rules about how fast the money must be taken out of the plan
after your death. These rules curtail the ability to prolong a tax shelter which was
intended to aid your retirement.
Withdrawal Before You Reach Age 70 1/2
Until the year you reach 70 1/2, you need not take your money out of your
retirement account - unless your employer's plan requires this. In fact, there will
7. usually be a 10% early-withdrawal penalty if you make withdrawals before age 59
1/2. This is on top of the regular income tax you will owe at any age on amounts
withdrawn, though there's no tax on your recovery of after-tax contributions you
made.
Once You Reach Age 70 1/2
Once you hit 70 1/2, withdrawals must begin. Technically they can be postponed
until April 1 of the year following the year you reach 70 1/2 - say April 1, 2008 if
you reach 70 1/2 in 2007. But waiting until April 1 means you must withdraw for
two years - 2007 and 2008 - in 2008. To avoid this income bunching and a possible
higher marginal tax rate, your tax adviser may suggest withdrawing in the year you
reach 70 1/2.
The rules allow you to spread your withdrawals over a period substantially longer
than your life expectancy. Under these rules the taxpayer (say, an IRA owner) first
determines his or her retirement plan asset values as of the end of the preceding
year. Then the owner takes the number for his or her age from an IRS table (the
table is unisex). The number corresponds to the future period (at that age) over
which the withdrawals may be spread. The owner divides that number into the
retirement asset total. The result is the minimum amount to be withdrawn for the
year.
Example: Joe reaches age 70 1/2 in October of this year. Retirement plan assets in
his IRA totaled $600,000 at the end of last year. The IRS number for age 70 is 27.4.
Joe must withdraw $21,898 ($600,000/27.4) this year.
Example: Two years from now Joe is 72 and his IRA was $602,000 at the end of
the preceding year (when Joe reached age 71). The IRS number for age 72 is 25.6.
Joe must withdraw $23,516 ($602,000/25.6) when he's 72.
The distribution period in the IRS table in effect assumes distribution over a period
based on your life expectancy plus that of a beneficiary 10 years younger than you.
Only where your designated beneficiary is a spouse more than 10 years younger
than you is his or her actual life expectancy used to figure the withdrawal period
during your lifetime.
8. Caution: You can always take out money faster than required--and pay tax on
these withdrawals. However, the tax code is strict about minimum withdrawals. If
you fail to take out what's required, a tax penalty will take 50% of what should
have been withdrawn but wasn't.
Financial Calculator: Required Minimum Distribution
The IRS requires that you withdraw at least a minimum amount - known as a
Required Minimum Distribution - from your retirement accounts annually, starting
the year you turn age 70-1/2. Determining how much you are required to withdraw
is an important issue in retirement planning.
Credit Reports: What You Should Know
How do lenders determine who is approved for a credit card, mortgage, or car loan?
Why are some individuals flooded with credit card offers while others get turned
down routinely? Because creditors keep their evaluation standards secret, it is
difficult to know just how to improve your credit rating. It is important, however, to
understand the factors and to review your credit report periodically for any
irregularities, omissions or errors. Reviewing your credit report annually can help
you protect your credit rating from fraud and ensure its accuracy.
Credit Evaluation Factors
There are many factors that go into determining your credit. The following list
includes of some of the major factors considered:
• Age
• Residence
• "Authorized User" Payment History
• Checking And Savings Accounts
• Bankruptcy
• Charge-Offs
• Child Support
• Closed Accounts And Inactive Accounts
9. • Jobs
• Payment History
• Recent Loans
• Collection Accounts And Charge-Offs
• Cosigning An Account
• Credit Limits
• Credit Reports
• Debt/Income Ratios
• Department Store Accounts
• Payment History/Late Payments
• Finance Company Credit Cards
• Income/Income Per Dependant
• Mortgages
• Revolving Credit
• Name/Alias
• Number Of Credit Accounts
• Fraud
• Inquiries
These factors may be used, and weighted, in determining credit decisions. Credit
reports contain much of this information.
Obtaining Your Credit Reports
Credit reports are records of consumers' bill-paying habits collected, stored and
sold by credit bureaus.
Credit reports are also called credit records, credit files, and credit histories. Under
Federal law, you are allowed access to free credit reports. There are three major
credit bureaus and thousands of smaller ones where you can obtain a credit report.
These credit bureaus offer the free credit reports and monthly credit reports and
services for a fee.
• Experian Credit Bureau: 888-397-3742 (Cost: Free or $14.95
monthly)
10. • Equifax Credit Bureau: 800-685-1111
• Trans Union: 877-322-8228 (Cost: $11.95 monthly)
If you have been denied credit, you can request that the credit bureau involved
provide you with a free copy of your credit report, but you must request it
promptly. Otherwise each of the bureaus will provide you a copy of the report for a
fee. You can request a copy from their web sites (see links above) or 800 numbers
(also listed above).
Disputing Errors In Your Credit File
The Fair Credit Reporting Act (FCRA) protects consumers in the case of inaccurate
or incomplete information in credit files. The FCRA requires credit bureaus to
investigate and correct any errors in your file.
Tip: If you find any incorrect or incomplete information in your file, write to the
credit bureau and ask them to investigate the information. Under the FCRA, they
have about thirty days to contact the creditor and find out whether the information
is correct. If not, it will be deleted.
Be aware that credit bureaus are not obligated to include all of your credit accounts
in your report. If, for example, the credit union that holds your credit card account
is not a paying subscriber of the credit bureau, the bureau is not obligated to add
that reference to your file. Some may do so, however, for a small fee.
Fair Credit Reporting Act (FCRA)
This federal law was passed in 1970 to give consumers easier access to, and more
information about, their credit files. The Fair Credit Reporting Act gives you the
right to find out the information in your credit file, to dispute information you
believe inaccurate or incomplete, and to find out who has seen your credit report in
the past six months.
Understanding Your Credit Report
Credit reports contain symbols and codes that are abstract to the average consumer.
11. Every credit bureau report also includes a key that explains each code. Some of
these keys decipher the information, while others just cause more confusion.
Read your report carefully, making a note of anything you do not understand. The
credit bureau is required by law to provide trained personnel to explain it to you. If
accounts are identified by code number, or if there is a creditor listed on the report
that you do not recognize, ask the credit bureau to supply you with the name and
location of the creditor so you can ascertain if you do indeed hold an account with
that creditor.
If the report includes accounts that you do not believe are yours, it is extremely
important to find out why they are listed on your report. It is possible they are the
accounts of a relative or someone with a name similar to yours. Less likely, but
more importantly, someone may have used your credit information to apply for
credit in your name. This type of fraud can cause a great deal of damage to your
credit report, so investigate the unknown account as thoroughly as possible.
Note: An annual review of your credit report is recommended.
It is vital that you understand every piece of information on your credit report in
order that you be able to identify possible errors or omissions.
Paying Off Debt the Smart Way
Being in debt isn't necessarily a terrible thing. Most people are in debt between
mortgages and car loans and credit cards and student loans. Being debt-free should
always be a goal, but you should focus on the management of it, not the presence of
it. It'll likely be there for most of your life, and if you handle it wisely, it won't feel
so much like an albatross around your neck.
There are alternatives to shelling out your hard-earned money for exorbitant
interest rates, and to always feeling like you're running behind and on the verge of
bankruptcy. You can pay off debt the smart way, while at the same time saving
12. money to pay it off faster.
Know Where You Are
First, assess the depth of your debt. Write it down, using pencil and paper or
computer software like Microsoft Excel or Quicken. Include every financial
situation where a company has given you something in advance of payment,
including your mortgage, car payment(s), credit cards, tax liens, student loans, and
payments on electronics or other household items through a store.
Record the day the debt began and will end (where possible), the interest rate you're
paying, and what your payments typically are. Add it all up, painful as that might
be. Try not to be discouraged; you're going to break this down into manageable
chunks while finding extra money to help pay it down.
Identify High-Cost Debt
Yes, some debts are more expensive than others. Unless you're getting payday
loans (which you shouldn't be), the worst offenders are probably your credit cards.
Here's how to deal with them.
• Don't use them. Don't cut them up, but put them in a drawer and only access
them in an emergency.
• Identify the card with the highest interest and pile on as much extra money
as you can every month. Pay minimums on the others. When that one's paid
off, work on the card with the next highest rate.
• Don't close existing cards or open any new ones as it won't help your credit
rating.
• Pay on time, absolutely every time. One late payment these days can lower
your FICO score.
• Go over your credit-card statements with a fine-tooth comb. Are you still
being charged for that travel club that you've never used? Looks for line
items you don't need.
• Call your credit card companies and ask them nicely if they would lower
your interest rates. It works sometimes!
13. Save, save, save
Do whatever you're able to do to retire debt. If you take a second job, earmark that
money strictly for higher payments on your financial obligations. Substitute free
family activities for high-cost ones. Sell high-value items that you can live without.
Bag Unnecessary Items to Reduce Debt Load
Do you really need the 800-channel cable option or that dish on your roof? You'll
be surprised at what you don't miss. How about magazine subscriptions? They're
not terribly expensive, but every penny accounts. It's nice to have a library of
books, but consider visiting the public library or half-price bookstores until your
debt is under control.
Don't ever, ever miss a payment
You're not only retiring debt, but you're also building a stellar credit rating. If you
ever decide to move or buy another car, you'll want to get the lowest rate possible.
A blemish-free payment record will help with that. Besides, credit card companies
can be quick to raise interest rates because of one late payment. A completely
missed one is even more serious.
Do Not Increase Debt Load
If you don't have the cash for it, you probably don't need it. You'll feel better about
what you do have if you know it's owned free and clear.
Shop Wisely, and Put the Savings on Your Debt
If your family in large enough to warrant it, invest $30 or $40 and join a store like
Sam's or Costco. And use it. Shop there first, then at the grocery store. Change
brands if you have to and swallow your pride: Use coupons religiously. Calculate
the money you're saving and slap in on your debt.
Each of these steps, taken alone, probably doesn't seem like much, but learn to
adopt as many of them as you can and you'll be able to watch your debt decrease
every month.
14. Tax Benefits for Job Seekers
Many taxpayers spend time during the summer months polishing their resume and
attending career fairs. If you are searching for a job this summer, you may be able
to deduct some of your expenses on your tax return.
Here are six things you need to know about deducting costs related to your job
search.
1. In order to deduct job search costs, the expenses must be spent on a job
search in your current occupation. You may not deduct expenses incurred
while looking for a job in a new occupation.
2. You can deduct employment and outplacement agency fees you pay while
looking for a job in your present occupation. If your employer pays you
back in a later year for employment agency fees, you must include the
amount you receive in your gross income up to the amount of your tax
benefit in the earlier year.
3. You can deduct amounts you spend for preparing and mailing copies of a
resume to prospective employers as long as you are looking for a new job in
your present occupation.
4. If you travel to an area to look for a new job in your present occupation, you
may be able to deduct travel expenses to and from the area. You can only
deduct the travel expenses if the trip is primarily to look for a new job. The
amount of time you spend on personal activity compared to the amount of
time you spend looking for work is important in determining whether the
trip is primarily personal or is primarily to look for a new job.
5. You cannot deduct job search expenses if there was a substantial break
between the end of your last job and the time you begin looking for a new
one.
6. You cannot deduct job search expenses if you are looking for a job for the
first time.
15. What to do if You Haven't Filed Your 2008 Return
The failure to file a federal tax return can be costly - whether you end up owing
more or missing out on a refund.
There are several reasons taxpayers don't file their taxes. Perhaps you didn't know
you were required to file. Maybe, you just kept putting it off and simply forgot.
Whatever the reason, it's best to file your return as soon as possible. If you need
help, even with a late return, the IRS is ready to assist you.
Here are some things to consider:
• Failure to File Penalty. If you owe taxes, a delay in filing may result in a
"failure to file" penalty, also known as the "late filing" penalty, and interest
charges. The longer you delay, the larger these charges grow.
• Losing Your Refund. There is no penalty for failure to file if you are due a
refund. However, you cannot obtain a refund without filing a tax return. If
you wait too long to file, you may risk losing the refund altogether. The
deadline for claiming refunds is three years after the return due date.
• EITC. Individuals who are entitled to the Earned Income Tax Credit must
file their return to claim the credit even if they are not otherwise required to
file.
Whether or not you must file a tax return will depend upon a number of factors,
including your filing status, age, and gross income.
Please call us for more information on how to file a tax return for a prior year.
Basic Hints to Help New Small Business
One of the biggest challenges facing people who are starting their own small
business is understanding and meeting the tax filing requirements. It can be an
overwhelming experience to learn about federal tax responsibilies and to avoid
16. common pitfalls.
The following is a list of the basic tips offered by the IRS to avoid potential
problems:
• Classify workers properly as employees or independent contractors as
determined by law, not the choice of the worker or business owner;
• Deposit federal employment taxes, called trust fund taxes, according to the
appropriate schedule;
• Start making estimated quarterly payments to cover your own income tax
and social security self-employment tax liability;
• Keep good records to protect your personal and financial investment and to
make tax filing easier;
• Consider a tax professional to help you with Schedule C;
• File and pay your taxes electronically; it's fast, easy, and secure;
• Protect financial and tax records to ensure business continuity in the
event of a disaster.
Seven Tips for Students with a Summer Job
Many students get a summer job during their time off from school. Here are seven
things everyone should know about income earned while working a summer job.
1. Taxpayers fill out a W-4 when starting a new job. This form is used by
employers to determine the amount of tax that will be withheld from your
paycheck. Taxpayers with multiple summer jobs will want to make sure all
their employers are withholding an adequate amount of taxes to cover their
total income tax liability. To make sure your withholding is correct, visit the
Withholding Calculator on IRS.gov.
2. Whether you are working as a waiter or a camp counselor, you may receive
tips as part of your summer income. All tip income you receive is taxable
income and is therefore subject to federal income tax.
3. Many students do odd jobs over the summer to make extra cash. Earnings
17. you received from self-employment are subject to income tax. These
earnings include income from odd jobs like baby-sitting and lawn mowing.
4. If you have net earnings of $400 or more from self-employment, you will
also have to pay self-employment tax. This tax pays for your benefits under
the Social Security system. Social Security and Medicare benefits are
available to individuals who are self-employed the same as they are to wage
earners who have Social Security tax and Medicare tax withheld from their
wages. The self-employment tax is figured on Form 1040, Schedule SE.
5. Subsistence allowances paid to ROTC students participating in advanced
training are not taxable. However, active duty pay - such as pay received
during summer advanced camp - is taxable.
6. Special rules apply to services you perform as a newspaper carrier or
distributor. You are a direct seller and treated as self-employed for federal
tax purposes if you meet the following conditions:
o You are in the business of delivering newspapers.
o All your pay for these services directly relates to sales rather than to
the number of hours worked.
o You perform the delivery services under a written contract which
states that you will not be treated as an employee for federal tax
purposes.
7. Generally, newspaper carriers or distributors under age 18 are not subject to
self-employment tax.
Save Time for Summer by Memorizing Transactions
Unfortunately, your work with QuickBooks doesn't end just because it's summer, the
weather's great, and school's out. But there are ways to minimize your time spent
managing your money and maximize your time at the beach. Memorizing transactions
is one such way. When you memorize a transaction, QuickBooks remembers all of
the relevant details and either processes it automatically or reminds you that it's due.
A memorized transaction could be bills that show up in the same amount every
18. month, like your Web-hosting payment, or obligations that change regularly, like
your utility bill. You can specify the amount due if it's static, or leave the amount
open if it regularly changes, making this feature very flexible and easy to set up.
Jog your memory
Once you start teaching Quickbooks to memorize transactions, you'll wonder why
you didn't use this handy feature before. Say you want to automate your electric bill.
First, create a transaction without an amount, like the one shown in Figure 1. Click
the Edit menu, and then click Memorize Bill. The dialog box shown in Figure 2
opens.
Figure 1: To memorize a bill payment that changes regularly, fill out the transaction
form minus the amount.
19. Figure 2: When you click Edit/Memorize Bill, this dialog box opens.
The vendor's name appears in the Name field. If you want a more descriptive name
so you'll recognize it in a list, change it here. You have a few decisions to make in
order to set up the repetitive transaction:
• Do you want QuickBooks to remind you in advance of the bill's due date?
Click Remind Me. If not, click Don't Remind Me. And if it's a bill whose
amount remains the same every time, you can click Automatically Enter. If
the transaction is a part of a group you've created, click the With
Transactions in Group button.
• How often do you pay this bill? Generally, it will be monthly, but
QuickBooks gives you several options.
• Check the Number Remaining box if you have a transaction with a finite
number of payments, such as paying off a company vehicle.
• How much warning do you want? Enter a number in the Days In Advance To
Enter field.
• If you've created a group and you want this transaction to be a part of it, select
the name from the drop-down list.
When you want to use a memorized transaction, click the Lists menu, then
Memorized Transactions List to open the dialog box shown in Figure 3. You can also
"memorize" repetitive reports. Open the report you want to work with by clicking, for
example, Reports/Company & Financial/Profit & Loss YTD Comparison. A dialog
box like the one in Figure 4 opens. Accept the name presented, or change it to one
that you'll more easily recognize. If you want to save reports in groups you've created,
20. like Accountant, select the group from the drop-down list.
Figure 3: The Memorized Transactions List allows you to customize to your
preference.
Figure 4: The Memorize Report dialog box...
Thanks for the memories
Memorized transactions and reports can not only save you time for more summer
adventures: They provide another way for QuickBooks to give you a quick look at
what you owe and are owed, and how your company is performing overall.
21. Financial Planning Tips for August 2009
Prepare a Post Mortem Letter
Review or prepare a "post-mortem" letter to your spouse spelling out the location of
your assets and property (assets of a deceased are often lost because a spouse may
not be aware of them or know their location), the names of all your advisors, and
any other information your spouse should know to minimize his or her burden in
the stressful period after your death.
Get Your Social Security Statement of Benefits
Request a Personal Earnings and Benefit Estimate Statement from the Social
Security Administration. This can be done using Form SSA-7004 or over the
Internet. This statement summarizes your social security earnings history and
provides an estimate of the benefits to which you are entitled. It is important to
verify that you have been credited for all of your earnings. You can also use this
statement in your retirement planning.
Review Your Budget vs Actuals for July
Compare July income and expenditures with your budget. Make adjustments as
appropriate to your August expenditures. Make sure you have invested your
planned savings amount for July.
Estimate Your Tax Liability
Total up your taxable income, capital gains and deductions through this date. This
information can be used to plan your estimated tax payments, and perhaps avoid or
minimize any underpayment penalties.
Tax Due Dates for August 2009
August 10 Employers - Social Security, Medicare, and withheld income tax. File
form 941 for the second quarter of 2009. This due date applies only if you
