Interview: QuickBooks ProAdvisor® Stacy Kildal Serves Up Year-End Business Management Advice
Stacy Kildal is the principal of Kildal Services, a full-service bookkeeping firm. She has been a QuickBooks user for eight years and a Certified QuickBooks ProAdvisor for four years. She also teaches and provides training in QuickBooks. She stresses that a good bookkeeper can save a business time and money by keeping a business financially on track with good record-keeping and good accounting practices. Bookkeepers work hand-in-hand with a business's CPA, getting the books ready for larger accounting operations such as yearly returns and audits.
QuickBooks Payroll Bulletin: Tax year-end is normally a crucial time for business payroll—what are the most common mistakes you see at this time of year?
Kildal: Over the years, I've seen a few businesses that have forgotten that they have to file a 940 (the federal annual unemployment return). If they're doing their payroll in-house, they may not know that they should balance their W-2 forms to the 941s. Occasionally, they don't check their W-2s for accuracy, or they forget to send a W-3 form to go with their W-2s or a 1096 to go with any 1099s that they send out.
QBPB: Are there any online resources or even offline (physical offices) where you recommend your clients go to find out about all of the filing requirements for small businesses?
Kildal: I always refer people to our state site, the Michigan Business and Economic Development (http://www.michigan.gov/som/0,1607,7-192-29943---,00.html) and the Michigan Department of Labor and Economic Growth (http://www.michigan.gov/dleg), as well as the IRS (www.irs.gov). There are a lot of resources and help that people can find just by going to their state Web sites to see what the filing requirements are. (1)
QBPB: And do you recommend that your clients do that even before they hire their first employee?
Kildal: Yes, always!
Set Up a Payroll Product at the Beginning of the Quarter
QBPB: This is also the time of year that many employers who have just hired their first employee(s) are looking for a payroll solution. From your point of view, which is better—setting up a payroll product before you start your tax-year-end process, or waiting until the new year so you have a fresh start?
Kildal: If it's the middle of the year, I usually recommend waiting until the beginning of the next quarter. If it's close enough to the end of the year, they should try and hold off until the new fiscal year. It makes it a lot easier if you just start fresh at the beginning of any quarter.
QBPB: Okay, so you can start at the beginning of a quarter and you're good.
Kildal: I think that's a lot easier. If they're switching from a payroll service to do payroll in-house, I usually advise them to let their payroll service finish up the quarter and then start at the beginning of the next one. Because QuickBooks makes setup so simple, starting at the beginning of a quarter just makes it that much easier. You don't have to figure out what you have paid this quarter compared to what the payroll service has paid. You can just enter the historical wages as well as liability payments during the setup wizard.
QBPB: We know that a lot of the problems customers have are due to the fact that they haven't set up their payroll correctly. Unfortunately, it isn't always easy to know whether you've done it right or not—for instance, QuickBooks can't tell you whether someone who works for you should be a 1099 contractor or a W-2 employee. What tips do you have for someone who's setting up their new payroll product to ensure that they've done it right?
Kildal: If someone isn't comfortable with setting up payroll or doesn't have payroll experience, I would recommend they get with a QuickBooks professional or their accountant to find out how any special payroll items—such as wage garnishment or 401(k)—translate into payroll items in QuickBooks, and how they will affect expense and liability accounts. Setup is generally the root of any payroll problems that may arise.
Where to Look for an Accounting or Tax Pro
QBPB: If you're a small business owner and don't yet have an accounting firm or tax professional looking over your books and you feel it's time to take that step, how do you find someone who's reliable and knowledgeable?
Kildal: I generally tell people to talk to other businesses that are similar to their business and ask who they're using—word of mouth is always good. If you're looking for someone who knows QuickBooks and works with it on a regular basis, I always tell people to check out the Find-a-ProAdvisor Web site at http://proadvisor.intuit.com/referral/. It's the best place to find an expert in your area. You can always call your local Planning & Economic Development Department. Where I live, in Oakland County, Michigan, the department can refer you to companies or individuals. That can be a really good resource that some people may not even realize. Another one is the local CPA society or association. You can contact them and see if they can recommend someone in your area that may specialize in your type of business. (2)
(1) You can find a listing of state tax agencies by going to http://support.quickbooks.intuit.com/support/Payroll/Efp/AgencyContacts.aspx
(2) The IRS maintains an Office of Professional Responsibility where consumers can bring complaints against tax practitioners. You can find out whether an accounting professional has been sanctioned by the OPR by contacting the office at opr@irs.gov and including the tax preparer's name and address. The IRS cannot force a tax professional to return money or files, but a tax professional can be reprimanded, censured, or have their privilege to practice before the IRS revoked. Go to http://www.irs.gov/taxpros/agents/article/0,,id=123392,00.html for more information.
QuickBooks Payroll Bulletin
Editor: Lise Quintana
Publisher: Intuit
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