If there are regular payments you can use the Memorise transaction function which will allow you to enter the transaction once and it will prompt you to ask if you want to enter it again next month/week in which case it's already filled in. I haven't used it yet but will be doing so in the new year.
Also, as you use it, it will prefill some of the fields based on past entries if you set it up right (Edit Preferences) so you will get quicker as you have less to enter.
QB on line has the ability to feed bank statements through I believe, but if it's a QB desk top then you will have to input it all. Depending on how many transactions there are it could take a long time! Also what about the rest of the paperwork to go with the bank statements??
Like Ian says what about the MLR bit, I personally would be worried doing it and how come they are not using someone in the USA to do it? Do a credit check on them they may be dodgy.
Known how busy I am I wouldn't take it on as I couldn't make the deadlines. I have just been to take on a new client this morning and although he gave me all his stuff, I have told him I won't look at it till February, luckily none of it is desperate or needed in January.
Also like Ian say the QB's USA is slightly different set up to the UK version. Also why are they so far behind, if you were that far behind in the UK and a big retailer, they would have gone bust by now. Sorry but there are warning signs all over this. What about payment to you, are you getting your payment in advance?
Its a reputable clothing retailer in Malibu CA. The entries had been done in quickbooks but no back up saved and the computer has been stolen so all entries need to be redone.
I am doing the work through PPH and a deposit has already been paid in to a pot. If the client is happy with the work once completed then the balance is paid across.
I have got the client to download the cloud version of quickbooks and I am about to start work on it now.
With regards to other transactions ie invoices, I asked the client about this and it would appear all he wants me to do is enter the information from the bank statements and checks and deposits which are all listed for me.
The retailer is Spindle and Canister.
Seems legitimate to me but who knows!
The owner has told me there is a possibility of more work doing the books if they are happy with this first job.
The company i work for full time has an office/sales department out in the US so I can always ask them for advice on US accounting rules etc (US GAAP).
If it all goes wrong then it will be a lesson learned.
Can anyone point me in the right direction of how to start the entries? I am not a user of quick books.
I am sure it's not that difficult and could probably find my own way around but would prefer the input of a regular user so i can do it the best way and hopefully quickest way.
Because I had nothing better to do with my time, I looked them up on the California Secretary of State's website (http://kepler.sos.ca.gov/) and found this:
Results of search for " SPINDLE AND CANISTER " returned 1 entity record.
Entity Number 200709510268 Date Filed 04/03/2007 (i.e., 3rd April 07) Status SUSPENDED Entity Name SPINDLE & CANISTER, LLC Agent for Service of Process RICHARD N. SCOTT
Suspended or Forfeited: The business entity's powers, rights and privileges were suspended or forfeited in California 1) by the Franchise Tax Board for failure to file a return and/or failure to pay taxes, penalties, or interest; and/or 2) by the Secretary of State for failure to file the required Statement of Information and, if applicable, the required Statement by Common Interest Development Association. Information regarding the type of suspension can be obtained by ordering a status report. For information on ordering a status report, refer to Information Requests.
It may be that the work you are doing is necessary for the company's re-instatement, but I do think you have some questions to ask ... including, why weren't you told? Are they asking you to do the work in UK because they appear to have no rights to operate in California, and do they have the power to issue payment to you or anyone else?
Please don't think I'm interfering, but the situation struck me as curious, so I googled them. I really do hope I'm being unnecessarily alarmist, and if I am, I apologise.
Don't worry I don't think you are interfering you are just being cautious. I did google them but only to see what the business was.
To be honest I am not that overly concerned at the moment as I know of companies in this country that either file late or haven't filed and face fines etc.
It's not ideal I know and I cannot see that I am getting myself in any trouble by doing the bookkeeping for them. It's not like I am doing the final accounts and submitting them.
I wouldn't do anything like that as I don't know enought about US accounting.
I do know that his computer was stolen with accounts on it and this is why he has asked me to do these entries and has a deadline for getting it done.
Thinking about it now maybe he has lied to me and hasn't submitted any accounts and this is why he has asked me to do them.
I am just wondering now I can be held liable for anything although I do have email communication and communication through PPH off him requesting that I do the work.
Should I ask him about the status tag on his company and failure to submit accounts/pay taxes?
Well I for one think that was a sound bit of investigation Iain.
Don't know about Elaine but at Shamus HQ there are whopping alarm bells and flashing red lights going off all over the shop over this one.
I had a few enquiries like this when I advertised through People Per Hour (got no enquiries at all from the UK I assume because I wasn't looking to pay people to allow me to work for them so knocked PPH on the head as a good idea pretty badly implemented (as it is geared totally to the client, not the business)).
The basic question has to be that out of all of the many many bookkeepers stateside who are used to using Quickbooks and handling the various state and national taxes plus American reporting standards and their wages system. Why did this company seek someone out in the UK?
As for the computer being stolen and there being no backups... No backups! Not no current backup but no backup at all.
Maybe with some plumber just starting out but a company looking to outsource its finance function internationally....
Nothing adds up here, everything feels wrong. I'm with Iain and Amanda in that I would avoid this one like the plague as I can see no legitimate reason for this business to not be using a local bookkeeper to resolve their problems.
Also, complete aside here and I don't know the answer to this myself but does normal PII cover one for international trade like this? Also, which countries laws would be governing the transaction?
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Have you had any enquiries at all from the UK Elaine? I got nothing but know of others who have been approached with enquiries about bookkeeping AND accounts / tax filing for as little as £50!!!
Whats the betting that even at that money they got someone.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Yes, you must ask about the status tag of the company. Point out that you are obliged by UK law to carry out due diligence checks on all customers you take on, and that your enquiries have revealed that the company has been suspended by the California Secretary of State and appears to have lost "all rights, powers and privileges in California". Ask for an explanation - a good one, not "Don't worry your head about that ... we're dealing with it..."
You are right that there are hundreds of firms in the UK that file late, and they are often our bread and butter, but how many have actually been struck-off? And do UK firms ask American bookkeepers to carry out the work needed to restore them to the register when there are so many UK based firms that could do it quicker? Yes, we're probably cheaper, but Indian bookkeepers are even cheaper still!
Shaun's observations about insurance are also pertinent. In fact, I'm annoyed with myself for not mentioning it before, it's so important. Insurers routinely exclude the USA from their policies and if this is so in your case, you will certainly not be covered if things go wrong for you. Check your policy.
Meanwhile, I would be wondering how to extricate myself from this if the answers are not satisfactory, and, indeed, whether this should be regarded as a suspicious circumstance. And if so, who should you report it to? Be very careful with this one.
Iain
PS ... Just looked at their website. They claim that their "social mission" is to provide jobs locally, to downtown LA. I know manufacturing is not the same as bookkeeping, but it does highlight our questioning the reason to use a UK bookkeeper.
PPS ... I don't know PPH. I assume they're an international agency that subcontracts work. If so, does that make all the above irrelevant? I'm not sure it does.
-- Edited by ilsm on Saturday 28th of December 2013 05:22:50 PM
they're more a notice board than an agent although there are some agent traits related to their service.
They have a notice board / email list where those looking for someone to perform a task and those looking for work vie to win work but the flaw is that those looking for someone are invariably looking for the cheapest possible option so the rates are often ridiculously low with those offering services agreeing to work for way below acceptable market rates.
Ive seen a case where a UK business was looking for a years bookkeeping, accounts prep and filing plus tax return. And was willing to pay "up to" £50!!!
They are going to get people looking for experience willing to accept those rates as loss leaders. In the case above though it actually specified that applicants must be qualified and experienced (And I still bet that they got someone).
PPH seems to work for those looking to get some work done but doesn't really work for businesses offering services unless you have something unique. Anything where there is any competition and it just ends up as a race to the bottom.
Payment is made through PPH but you are not working for them. They simply take their commission from the clients payment before passing the remainder on.
I think that if you think of them more as Exchange and Mart rather than Reed you would be along the right lines.
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
normally I just treat the PPH emails as spam but after this discussion I decided to take a look at some of todays job ads.
here are a couple that particularly jumped out at me.
- Logistics Management software. Design develop and implement from scratch. Budget £100. Posted less than an hour ago and already has four applicants.
- Accountant needed to develop spreadsheet for product pricing. VAT registered business. Budget £10... They've already got seven applicants.
I'm sure that many of those answering the ads would not do the work for the offered rates but possibly negotiate outside of PPH so cutting PPH's cut of fee's.
Also, I'm really not concerned about the businesses that advertise work on that site as I wouldn't want to work with any business that expected to pay so little yet still expect quality of service.
What does concern me is that other businesses owners are going to be seeing these offers and how many people are (seemingly) agreeing to the rates and thinking that they can get good quality people and service at these ridiculous rates.
Thats making a rod for all of our backs.
If anyone gets hit with that line I would advise the approach of telling clients that no quality bookkeeper or accountant would work for those rates and if they expect to pay those sort of rates then it will cost them twice as much when we have to redo everything six months down the line.
Just as a quick addendum. I'm sure that there is the occassional good quality client on PPH and non of my comments are aimed at Elaines particular case where I am sure that she negotiated a decent fee for the work.
My comments are pure generalisation about PPH which I do not think is a good platform for service providers as it is aimed almost exclusively to the benefit of the end client rather than ourselves.
These are also just my ramblings, quite happy to hear of PPH success stories if anyone has any?
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Hi Shamus, Iain,
I am getting work through PPH and yes some of the people on there want something for nothing but I tend not to get involved in those ones although I did to a self assessment for peanuts but saying that it took me less than half an hour so in the end was good money. I have 2 regular clients that i got on PPH. One based in London and one in the lakedistrict.
If you are starting out or just doing it part time then it can be a good place to start. I now deal with both clients directly as PPH take about 18% of your earnings.
Its also getting me experience of working with different people and using different software.
I will continue to use it for the time being until I am full to capacity.
It's not all bad on there.
My client has come back to me. Please don't think I am being naive as I am not that stupid but I do really think this client is no different than a lot of them in the uk particularly sole traders whose accounts are in a mess because they don't understand what they are required to do.
The client has told me he has not submitted his accounts and that is why he is in a bit of hot water.
He is also telling me that in one bank account he has 3 different lots of income and expenses. Personal, one house that is being rented and the clothing company.
I have suggested that he helps me separate it out and do it in spreadsheets this time and going forward keep all 3 separate.
I could be wrong but I have clients who fit all of the above who don't have a clue about accounts and that is where we step in an sort them all out.
If it wasn't for these people there wouldn't be so much work about.
I am continuing for now and hope he takes note for the future.
I am still her plugging away at this clients books and now really starting to regret it due the amount of work involved.
The client has just one bank account and is using the bank for business and personal.
to split out the personal items what should i be posting them too?
Bearing in mind we are talking quickbooks and not sage or VT so narratives are slightly different.
Should i set something up under equity and name it personal expenditure.
I am getting a headache and am only on January 2008 and have to December 2010 to do.
I'll learn as time goes on not to get involved but for now I will plug away.
As I don't know PPH, I have no opinion, Elaine. I understand what Shaun says about these kinds of organisations, but I can also see your point of view, too. I hope this guy is genuine and that he retains you for the future.
My impression of the rag trade in the UK is that they are here today and gone tomorrow. At least your guy has been in regulatory default since 2007, so that indicates some consistency at least!
many thanks for the insight into using PPH successfully. I must have absolutely no patience as I knocked it on the head inside a month.
Worth remembering though with this one is that the tax system stateside a lot different to the tax system in the UK. They can set a lot of things off against there tax system that we cannot.
I know that its only the bookkeeping but our bookkeeping is still based around our standards and you will find differences with what needs to be recorded where stateside. For example, things that we might drop straight to drawings are allowable over there.
Sure that you've already got the link but for others considering the same path start here : http://www.irs.gov/
You are probably going to need to come to grips with these documents for starters :
only a minor difference amongst many just to show different treatments but note amongst the above the different (much more lenient) treatment of entertainment expenses stateside.
I may have a read therough the above although I've got this fear that if I try to cram any more into my tiny brain my head may just explode (I definitely need an upgrade).
This all seems one heck of a steep learning curve for a short lead time but get it right and you could end up good for a green card.
Good luck with the new client Elaine,
all the best,
Shaun.
p.s. amongst my many books (now eight full size Ikea billy bookcases) I've got "How to open your own in-home bookkeeping service" by Julie Mucha-Aydlott. Which gives things from a stateside bookkeepers perspective. Its not an how to book for their tax system but more an insight into the role of the bookkeeper, trials, tribulations, pitfalls and all.
I've had it for a couple of years and have been noting the UK system slowly developing towards the American model. For example, the seperation of payroll to dedicated service payroll providers.
The book is available on Kindle for £6.56 (2nd edition). It may open your eye's as to what is expected of a bookkeeper over there compared to over here. (For example, preparation of client audit packages).
I bought the book cheaper than the kindle price just to be inquisitive but found the book very good from the perspective of the mindset for gaining clients and setting prices.
The feeling that Quickbooks is integral to being a bookkeeper comes accross really strongly and you are left with the impression that QB stateside has the same market impact as Sage here.
In the book where it refers to Peachtree, thats was the name of Sage over there until very recently.
Seems to be a lot more business taxes over there than we have. Not sure how joined up they all are but for info they have : IRS, State, City, Payroll and 1099 returns to file.
I think that the books worth a purchase if you're thinking of dipping your toe in that market and even if this was a one off gig there is plenty of startup and marketing advice in there that travels the Atlantic well (plus the stories about getting things wrong and bad clients are quite good reading and lessons for all of us no matter where in the workld we are).
p.s.2.
You might also find some useful information on the site of the American Institute of Professional Bookkeepers here : http://www.aipb.org/index.php
P.S.3
Edited only because the links were all dead. They should all work now.
P.S.4
Hi Iain. Sorry, we crossed in the post. I wasn't ignoring you.
P.S.5
Elaine, I think that I've inadvertantly answered some of your question (or at least pointed you in the right direction) before I read your follow up post. All comes down to what you can and cannot claim being different stateside to over here so things that we would put to drawings might not necessarily end up there in the US.
Have a read through those links to try and get a feel for allowable expenses. There is a lot of commonality but also important differences such as their attitude to business entertainment.
-- Edited by Shamus on Sunday 29th of December 2013 01:37:37 PM
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
My full time job entails some accounting from the US as we have a full team out there of accounting people and sales people. They are based in Atlanta so I could always get a bit of guidance from them. I don't see that we have treated anything differently but maybe that is because we are reporting in the UK. I see the US Profit and Loss and Balance sheet and cannot see anything strange but also our affairs are huge where as this guy was only just starting out so peanuts really.
Shaun, persevere with PPH as you can get some ok work out of it. It is getting me experience and confidence until this job and also extra money.
You can always negotiate outside of PPH after you first lot of work. That is what quite a few people do who I know. It took me 9 months before I got any work out of it.
I also get the odd job through Choose Your accountant. All UK but none local to me in Manchester. The nearest one I had was Warrington and a one off but I have Birmingham, London, Liverpool and Portsmouth. All paid up bar the Birmingham one as I am still working on it and the London one and Liverpool one should be repeat clients for the next tax year.
There are some real crappy jobs on there as well and I think I have got one of them now. I have a list of checks and other payables that I am working through and then I have bank statements. The worst part of it is that he has the clothing business, a recent property rental and personal expenses all going through one bank account. That is the part I am not happy with as he hasn't given me a list of the separate items.
I really think I will struggle to get this done for his deadlines but then he hasn't been forthcoming in telling me everything was in one account.
We now have a timing difference as I am waiting for more questions answered/information and he is probably tucked up in bed.
It's just a thought but he may not realise I am in the UK. He may think I am in Manchester USA.
I doubt it buy my boyfriend just brought it up.
He is still on line answering questions which is good and he has also just thanked me and said he appreciates all I am doing for him.
I some now don't think he is dodgy but purely lacking in accounting knowledge.
I could be wrong.
I'll find out a bit more once the job is completed and see if I get paid!
The way I look at it is I can only enter records he has provided. If they are incorrect how am I to know as I have no invoice just bank statements and a list of checks and other debits.
I have now decided to just follow the bank statement and check off the checks on the list to make sure they match.
It is he who will have to answer questions as it's his business/accounts.
It's a bit of a mess really the fact he has 2 business and personal stuff all going on in one bank account.
I have advised that in the future he should really keep all 3 separate but we cannot undo what has already happened. He has agreed.
I am trying to make the best out of a messy situation.
Can't wait till it's over though!
Hey Elaine, are you using QuickBooks Online or desktop? If its online, get your client to connect his bank to QBO and drag in his transactions....if he's got everything on a speadsheet...get a free trial and check out transaction Pro Importer, it basically pushes everything from the spreadsheet into your U.S QBO...I think this also works with the desktop product (which I hope, after the fact that he lost all his data, you're not using!) Lol.
May I also add, reading the various replies on this post that its actually been enjoyable to read! :) especially the responses from Roger the Alien.
Hey, I am using quickbooks online. First time I have used it and am managing to find my way around. I have got him to set up the trial and i am entering eveything manually. How does the Pro Importer work for spreadsheets?
The documents he has provided are all pdf bank statements and a list of checks to help me allocate to correct codings.
It's a nightmare job and I am not that happy with as he has 2 businesses and personal expenditure all going through one bank account.
I don't have a major problem with that other than knowing which is which as I could have used a version of quickbooks separate for each business but he has asked me to just to put everything through one. I have put a narrative in the description field to help identify the transactions and all personal stuff has gone against owners equity which he asked for.
I have email evidence of this and evidence that I wanted to do it seperately. It's up to him to explain to an accountant when they try and do final accounts from it.
For future reference as I may be doing more work for him. If I download bank statements straight in to quickbooks then it will only take care of one side which is the bank. Will I still have to do entries for expenses and income? The way I am doing it I am debiting/crediting bank and then debiting/crediting income/expenses.
I am used to using Sage or large ERP systems to it's all new to me.
