QuickBooks has made great contributions to the accounting world and is found in more than 4.5 million companies. It has been especially helpful to the small business; even the home based entrepreneur can send invoices, pay bills and keep records without hiring outside help. Yet as helpful as QuickBooks proves itself to be, many users, large and small alike, do not utilize the software to its full potential. Check the following list of 10 often overlooked QuickBooks items for unknown features you could be using.

1. Customize Templates:As helpful as it is to have templates, every business is different and needs not only different columns, but also varying quantities of columns. QuickBooks allows the user to alter or edit templates, such as those for purchase orders or for customer statements. Data fields for a name, an address and/or phone number can be incorporated. Columns for differing pay rates, or for regular occurring versus special orders, can also be used. Even text and images can be added to make the templates specific to the business’s unique needs.
   • How: Access the LISTS menu, go to TEMPLATES and right click. Choose EDIT TEMPLATE and click LAYOUT DESIGNER.
   • Useful Info: Additional templates are downloadable from the internet and there are colorful themes available for enhancing these.
2. Account Number Designation: In addition to using the 31 digit alphanumeric account names, QuickBooks also allows a seven-digit account number to be used as well. While this may seem like a redundant feature, however, it can be surprisingly helpful. By using only a 10 key data entry system for looking up accounts, information can be accessed much more quickly. For internal accounting it affords the option of having accounts appear in a logical order that they will be used in instead of their alphabetically based order.
• How: Access by EDIT, PREFERENCES, ACCOUNTING COMPANY PREFERENCES and check USE ACCOUNT NUMBERS.
3. Memorize Transactions: Each company deals with regularly repeating transactions. QuickBooks can memorize these transactions and recall them when appropriate. Billing for reoccurring services, and payments for reoccurring expenses can be automatically entered into the proper accounts at predetermined intervals, saving time and reducing the likelihood of mistakes.

• How: Type Ctrl + M.
• Useful Info: Transactions that are memorized will generate but not send or print electronic payments and paper checks.
1. Batch Invoicing: Beginning with QuickBooks 2011, a feature allowing for the creation of invoices to be dispatched to a selected group is available. Example: A large number of clients pay the same charge each month for the same service. One invoice is drawn up and can then be sent to that designated group.
   • How: Access via CUSTOMERS menu, choose CREATE BATCH INVOICES
   • Useful Info: Information included in a Customized Template can be used to create and find batches that will all receive the same invoices.
2. Intuit Data Protection: Beginning with QuickBooks 2011, QuickBooks comes with Intuit’s Data Protection service as an automated backup for data entered into it daily. Each day’s information is saved to a Web-based storage site and held for 45 days.
   • How: To use this automated service, it is necessary to go to intuit.com. Install the program then select FILE, BACKUP. Prices vary from $4.95 to $9.95 per month.

Americans who earn over six figures from a standard paycheck (W-2 income) can often expect to pay out half of their take home pay in the form of federal, state, and local taxes. The top tiers of income earners pay the majority of federal, state, and local taxes. Those taxes in turn, pay for social programs and assistance for lower income Americans who often do not pay into the system.

In addition to income tax, the U.S. government also taxes estates, capital gains, and even gifts. The prospect of protecting wealth from the tax man can be a daunting endeavor for wealthy parents who want to ensure that their children and immediate family is taken care of. With some help from changes implemented by the government, estate planning has become a bit easier.

Historically, a $5 million estate tax exemption is extremely generous. In 2001 for example, estates worth over $675,000 were taxed at a rate of 45 percent. Given the real estate boom of the 1990’s and 2000’s, more and more estates found themselves outside of this exempted bracket. An estate of $675,000 just isn’t what it used to be. Not being considered extremely wealthy, many estate executors and dependents with assets falling just outside of the exclusion range found that they were not able to plan effectively in order to preserve the assets being passed down. This created a situation where they were unable to avoid paying a high tax rate. Conversely, at the present exemption of $5 million, some careful estate planning can provide a great deal of shelter to assets that may have taken a lifetime to build and then pass on. A qualified estate planner can literally save an estate hundreds of thousands of dollars in taxes.

Estate taxes come into play once the owner of the assets has died. This makes it nearly impossible for the giver to ensure that their gift was properly allocated and received. But, there is another option. Rather than wait to pass on assets after death, gifts of cash and assets are allowed without being taxed up to a certain limit. For the years 2011 and 2012, gift tax exclusions of up to $5 million, similar to estate tax exclusions, are also at historic highs. The Bush tax cuts adjusted the exemption amount on gift taxes from $675,000 to $1 million in 2002. This allows wealthy individuals to pass on more of their wealth to their families while they are still alive.

No one knows if the higher exclusion amounts will hold up after 2012. The upward trend does seem to have some important implications. The higher the exclusions on estate taxes, the higher the likelihood is that the tax will ultimately be repealed.

A new year means inevitable changes to the tax code that will need to be learned by accountants and other tax professionals across the country. Although the changes may not be as comprehensive as those of past years, there are still many important revisions that need to be considered while filing taxes in 2012 and beyond.

As expected, inflation adjustments were made to a variety of credits, deductions and limits for 2012. For instance, the amount of the personal exemption has increased to $3,800, and the standard deductions taken by taxpayers who do not itemize have also increased. In addition, contribution limits for retirement plans such as 401(k)s have also been adjusted upwards for the new year.

However, not all areas of the tax code were affected by the inflation adjustments mentioned above; standard mileage rates for businesses looking to deduct the costs of their vehicles will remain at 55.5 cents a mile while the rate for medical and moving expenses will actually drop to 23 cents a mile.

There are also new requirements for disclosure of capital gains and losses from the selling of financial assets. This relates to the reporting of the cost basis of security transactions, which affects the amount of short-term and long-term capital gains and losses that are accrued by a holder of an asset. As for certain foreign assets, the IRS is now requiring increased disclosure through Form 8938.

Congress has recently enacted a new law that will provide large incentives to businesses hiring military veterans, especially those suffering from a disability. This is in the form of a tax credit that could be as high as $9,600 for the hiring of a former soldier who was disabled during an enlistment and has been unemployed for at least six months.

The IRS has also initiated the Voluntary Classification Settlement Program, which is of great importance to employers who have been classifying workers as contractors for the purposes of avoiding payroll taxes and other expenses. By participating in this program, employers can pay just 10 percent of the past payroll tax liability; in addition, they will avoid all interest and penalties that would normally be charged on late payment of taxes.

As well, there are a variety of other tax revisions that will take hold this year. The penalty for failing to meet due diligence requirements with respect to the Earned Income Tax Credit has increased to $500. The lifetime tax exemption on gifts and estates has increased to $5.12 million. Finally, the bonus depreciation allowance, originally designed to help businesses lower their expenses during the most recent recession, will decrease from 100 percent to 50 percent for qualifying assets during their first year of operation.

Everyone needs to have a good accounting system, whether he or she hires an accountant and/or tax attorney or he or she decides to maintain his or her own records. A good rule of thumb to follow during the year is, “If you spend money, write it down.” The average individual may not know whether something is deductible, but by writing down the amount of money spent and why the money was spent will document the expenditure and will help to serve as supportive documentation in the event that the money spent is a legitimate tax deduction.

Maintaining regular financial records, even if only performed on a monthly basis is much better than attempting to remember financial transactions the following year. Financial records that have been well maintained make tax preparations easier for the individual and his or her tax preparer.

There are many choices when it comes to tax preparation, including obtaining the tax forms and filling them out, purchasing tax software or hiring a professional tax preparer. Perhaps the greatest advantage of hiring a tax preparer is that the tax preparer is responsible for any errors in the actual tax preparation. However, the tax preparer is not liable in the event that the taxpayer misinforms the tax preparer with regards to amounts that are considered tax deductible.

One advantage of hiring a professional tax preparer is that he or she is usually an enrolled agent. This means that the preparer is able to go to any audits or hearings for the taxpayer in the event that there is a problem with the return. Another advantage of hiring a professional is that he or she is able to give the taxpayer advice concerning advance preparation for the coming tax year. Perhaps the taxpayer had too much or too little deducted from his or her paycheck. The tax professional is able to advise the taxpayer how to correct the situation so that the proper amount is deducted from his or her paycheck.

If using a professional tax preparer, it is important to keep him or her informed when any changes occur, such as marital status, number of dependents, change of address, etc. Contact information is especially important because if there is a problem with the taxpayer’s return, the IRS will usually contact the preparer if it does not have updated information regarding the taxpayer.

Whatever choice an individual makes regarding tax preparations, it is important to keep the original copies of all tax returns, including additional forms and supporting documents. If the taxpayer hires a professional tax preparer, the preparer will usually keep a digital copy of the individual’s tax forms, including the returns.

Along with records that are neat and orderly, the individual needs to categorize and label individual receipts and/or invoices, filing them in an orderly fashion. While receipts and invoices may not be necessary for income tax preparation, these items serve to verify the authenticity of expenses claimed by the individual in the event of an audit.

Some taxpayers are entitled to make a deduction for the use of a vehicle or vehicles that he or she used for various reasons. The professional tax preparer understands what deductions the IRS allows and the laws concerning such deductions. As with spending money, if the taxpayer thinks that he or she is entitled to a deduction for vehicle use he or she needs to write down the mileage and the purpose for using his or her vehicle.

It is important that the taxpayer receives a contribution statement from any charitable organization that he or she gives to, whether monetary or personal property. The taxpayer’s tax preparer can advise the individual whether or not he or she can actually deduct and charitable contributions. Typically, the individual who intends to claim a tax deduction has to itemize his or her deductions rather than taking a standard deduction that the IRS allows for everyone.

It is important for the taxpayer to make a list of all employers that he or she worked for in order to make sure that he or she receives every W-2s before submitting his or her tax paperwork to the professional tax preparer. In the event that the taxpayer had his or her own business, it is equally important to ensure that he or she received all of his or her 1099 forms as well.

The taxpayer can go to www.dmvnv.com and print out the amount in motor vehicle taxes that he or she paid during the previous year. In addition, the taxpayer can go to his or her county web site and obtain a printout of property taxes paid for the same tax year.

After carefully organizing a complete list of all income and expenses, the tax preparer is ready to make an appointment with his or her professional tax preparer. If the taxpayer is part of a partnership or S-Corporation that has a different tax filing date, he or she may have to file an extension in the event that he or she is expecting to receive a Schedule K-1.