25 Android Apps for Accounting and Tax Prep / With these mobile apps, you can learn about accounting, track finances, manage investments, create expense reports and more.

Pam Baker for Datamation writes:At some point, everyone ends up needing to do some accounting. It may be so you can file your taxes for yourself or your small business. It may be so you can increase your profits through controlling expenses and speeding receipts. It may be to track your personal finances. In all probability, you need accounting for these and other reasons as well.

However, accounting takes precision, and that often requires a lot of time—time most people don’t have. Fortunately, there are several applications out there to automate a good deal of the work.

And now there are many mobile apps that act as companions to those bigger accounting software packages or work as stand-alones. Either way, mobile accounting apps make managing money far simpler than it has traditionally been for both the novice and the accounting pro.

Here are 25 Android apps that will help you keep your accounting and bookkeeping in order no matter how far you travel away from your desk. Note that this is not a ranking but a list, so order of appearance has no significance.

1. Accounting by WAGmob. For any accounting app to work well, you first need to understand what you need to account for and how best to do that. This app will teach you in small chunks. It provides a quick summary of essential concepts in accounting by delivering snack-sized chapters and flashcards. $1.99

2. Book Keeper - Financial Accounting. This is a double-entry accounting app for small and medium businesses. Its simple interface shows you your up-to-date company books. All you have to do is enter your daily vouchers. Free

3. Home Bookkeeping. As the name implies, this app is for home use. It helps with budgeting and expense tracking to keep your personal cash flow at its best. $3.99

4. Accounting Calculator. This calculator comes with many functions suited to accounting use. It’s very handy to have such a calculator on your phone rather than carry one around with you. Also, this app is free which makes it cheaper than even the cheapest physical accounting calculator you could buy. Free

5. Accounting Glossary. If you have hired an accountant to do all the work for you, you’ll find this app handy in understanding all the gobbledygook he or she tells you. Consider it a learning tool and accountant interpreter. Free

6. Accounting for dummies. Now small businesses and employees of large enterprises alike can understand the basics of accounting and how to interpret all the reports and financial statements that result. Free

7. Quicken Money Management. This is the free companion app to Quicken 2013 for Windows. To use it, you must have Quicken 2013 for Windows software: Starter Edition, Deluxe, Premier, Home & Business, or Rental Property Manager. The app enables you to stay connected to your business financial information even when you’re away from your desktop. Free

8. TurboTax SnapTax. Use your smartphone camera to snap a photo of your W-2, answer a few simple questions and choose to file from inside the app or move and finish on the web. While the app is free, you'll have a filing charge for federal and state taxes of $24.99 if you do everything in the app. Those charges vary if you elect to finish your tax filing on the web. Whether you elect to file and incur those charges or not, it’s still a good way to quickly access how much you will owe or be refunded. Free with exception noted.

9. QuickBooks Online. This app syncs with QuickBooks Online, so you need to be using that service already in order to use it. It’s great for managing your small business accounting, bookkeeping and CRM needs while on the go. Free

10. Zoho Invoice and Time Tracker. Send invoices and reminders and accept payments from your clients and customers. It includes easy-to-use templates for invoices and quotes, and it tracks related expenses you can also easily categorize. Supports PayPal, Stripe, Google Checkout, Authorize.Net and 2Checkout. Free

11. Check (formerly Pageonce). This app puts your bills and finances in one place and allows both immediate and “schedule later” bill pay. It will also alert you to low funds in your checking account and low credit limits on credit cards, saving you embarrassment when it’s time to pay for something. It has won multiple awards, including multiple years as “Google Editor’s Choice” and “Google Staff Picks.” Free.

12. Manilla - Bills and Reminders. Review all your accounts, bills, finances, travel rewards and subscriptions. You can pay your bills directly from the app. and there are reminders to help you do that on time and avoid late fees. It also has document storage. Owned by Hearst Corporation. Free

13. Financial Calculators – Bishinews. Get 13 different calculators ranging from a Time Value of Money (TVM) calculator and a currency converter to a variety of loan calculators, credit card payoff calculator, Annual Percentage Rate (APR) calculator, and a Return on Investment (ROI) calculator. Only the currency converter needs online access to function. Free

14. IRS2Go. Yes, there’s an app for and by the IRS too! Quickly check the status of your tax refund, signup for helpful tax tips, and get the most recent IRS Twitter feeds. In short, you can connect with the IRS straight from your mobile device. Free

15. Accounts Assistant. This app includes a wide variety of finance and cost formulas, including IAS and IFRS accounting standards, as well as a balance sheet, income statement and cash flows and ratio integration. It enables the user to access a wide range of formulas, standards and documents related to finance and cost. Free

16. Daily Accounting. This is a free double-entry accounting app suitable for small business and student use. Currently supports income statement, balance sheet, and general ledger reports. Free

17. Wikinvest Portfolio. This app will help you track the value of stocks and other investments. You can import holdings from over 60 brokerages, including Fidelity, ETrade, Scottrade, TD Ameritrade, Charles Schwab, Merrill Lynch, Sharebuilder, Vanguard, T. Rowe Price, Zecco, USAA, Edward Jones, and more. You only need to check this one app to see all your accounts. Free

18. Payroll Guru. Calculate net paycheck amounts from gross wages for salaried and hourly employees. Version 2.3 has updated payroll tax calculations for 2013. $4.99

19. Online Payroll -- Intuit Inc. This app automatically syncs with your Intuit Payroll account. Create paychecks for employees and contractors and pay them by direct deposit (it’s free!) You can also e-pay taxes and e-file forms in all states, get timely reminders on upcoming payday and tax deadlines, view past paychecks and get free, expert payroll support M-F 6am-6pm PT. Free for Intuit and QuickBooks Payroll users

20. Spensa Pro. Expense Tracker. This app keeps a record of your personal and professional finances. It tracks receipts captured by your phone’s camera; syncs multiple devices; works in multiple currencies; handles budgets, bank statements and money transfers; and has a variety of calculators for different financial functions. $8.99

21. Smart Business - invoice app. This app accounts for goods and debts and provides numerous reports and actions, including invoicing. Free

22. Accounting for Management. MBA. This educational tool provides a understandable overview of accounting activities, such as analyzing financial statements, making effective capital budget decisions, executing cost analysis techniques and numerous other concepts. $19.99

23. Receipt Reader, Expense Report -- Push Accounting Software. This is a basic bookkeeping app designed to produce tax- and accounting-ready expense reports. It uses the phone’s camera to capture and store receipts, which it then utilizes to create reports. It creates IRS/CRA-approved digital imaged receipts, which are recommended for an audit trail. Free


24. EasyMoney - Expense Manager. With just one app, you'll get an expense manager, a bill reminder, a checkbook register and a budget planner. It’s good for tracking and managing business expenses, personal expenses and travel expenses. It offers interactive reports and graphs for income, expenses and cash flow analysis, plus it provides balances over various date ranges and accounts. You can also export captured data to desktop money managers such as Quicken for expense reporting and accounting. Free.

25. Indian Accounting Standards. Looking for the accounting standards issued by Institute of Chartered Accountants of India (ICAI)? This app provides a quick reference on the go for accounting and auditing professionals in India. Free

Why it's important to be a tax-efficient investor

From Vanguard we read: You can't always avoid paying taxes but you can manage their impact on your investments. Joel Dickson and Maria Bruno of Vanguard's Investment Strategy Group emphasize the importance of tax-deferred accounts, and caution that how you buy and sell investments also can affect your after-tax returns.  (Click to View Video).

Rise of craft beer highlights needs in accounting and tax planning

Eric Gneckow, Business Journal Staff Reporter writes: After a number of accounting and advising firms have found a focus in serving the specific needs of the North Bay wine industry, demand from a different beverage category — craft beer — is highlighting another niche for tax and bookkeeping.

Many North Bay accounting firms with clients in both industries drew parallels between brewing and winemaking, including the heightened financial reporting requirements required as alcohol producers.

Yet as craft beer explodes in popularity in the North Bay and beyond, the accounting and tax nuances facing an ever-growing roster of craft brewers are becoming a topic of increased interest for the region’s large and small brewers alike.

Tom McCormick

“For many years, a lot of us were driving in the dark, trying to help each other. It was easier to get someone to help you with equipment and sourcing ingredients than finances,” said Tom McCormick, executive director of the industry trade group, the California Craft Brewers Association. “It’s just now beginning to develop where we’re seeing some people who are popping up to serve our industry.”

Sonoma County craft breweries, along with distillers and cider makers, were responsible for nearly $450,000 in outside accounting,  tax preparation, bookkeeping and payroll services in 2012, according to the first-ever Sonoma County Craft Beverage report released last week by the Sonoma County Economic Development Board.

Those breweries — currently 18 in Sonoma County alone — range widely in size. The largest in the region, Petaluma’s Lagunitas Brewing Company, produced more than 250,000 barrels of beer last year and plans to produce over 2 million after expansion both locally and within a new Chicago facility, according to the EDB. Other larger-scale producers include Cloverdale’s Bear Republic Brewing Company and Boonville’s Anderson Valley Brewing Company.

Yet production volume drops significantly from there, with even venerable brewers like Santa Rosa’s Russian River Brewing Co. producing 12,480 barrels in 2011 — the only other North Bay craft brewery producing more than 5,000 barrels that year. And even Chico’s Sierra Nevada Brewing Company, which produces nearly 1 million barrels a year as the largest craft brewer in California, still represents only 1 percent of the production of Anheuser-Busch Inbev, Mr. McCormick said.

Ken Dansie

The majority of breweries “are essentially small businesses,” said Ken Dansie, partner in the Private Company Services Group of BPM, accountants and consultants in the North Bay. Limited resources make planning for a capital-intensive expansion more difficult, even when a large demand exists.

“When you have a small craft brewery starting to produce, the underlying capital costs just to get started are significant,” he said, noting the cost of production brewing equipment. “Going from doing your first brew underneath your stairs to selling 1,000 barrels a year are very different things.”

The depth of planning required for an expansion puts a premium on professionals catering specifically to the craft brewing industry, though Mr. Dansie noted that the number of specialists are still relatively few in number.  And even amid surging demand, a small brewery may find those advisers out of financial reach.

As one aspect of financial planning, the tax code has continued to evolve in respect to craft brewers in recent years. While aging beer in wooden barrels once used for wine or spirits has become a widely adopted brewing technique, those beers were until recently subject to the higher excise tax reserved for liquor in California. That changed last year, when North Coast Assemblyman Wes Chesbro’s proposal to reclassify those beverages as beer was signed into law.  

Tami Norgrove

Yet those tax issues don’t stop at California, creating another layer of complication for craft breweries distributing outside of the state and the U.S., said Tami Norgrove, chief financial officer at Bear Republic. The brewery has developed an in-house system to track those differences and other data.

“It can be challenging,” she said, with differences that include aspects such as alcohol content and volume measurements. The brewery distributes its beer in 35 states and seven countries, and “each state has different requirements and different rules.”

Meanwhile, other tax questions still loom at the federal level, including the question of what the federal tax code considers a “craft brewery” itself. The proposed Brewers Excise and Economic Relief Act — more commonly known as the BEER Act — is one proposal backed by large-scale producers that would drop the tax on mass-production brewers from $18 a barrel to $9, essentially raising the small brewer tax by $2. A competing Small BREW Act, short for the Small Brewer Reinvestment and Expanding Workforce Act — would lower a current federal tax of $7 per barrel for those producing less than 60,000 barrels to $3.50.

Jim Craven

Yet regardless of the specific tax or industry definition for craft breweries, consumers appear to be embracing them with significant brand loyalty that in many cases starts with a direct-to-consumer experience at a brewpub-type setting, said Jim Caven, a director with Pisenti & Brinker LLP. For those breweries, combining the financial reports for a restaurant and what is essentially a manufacturing operation can add another challenge.

“Too often, we are separating our accounting info into silos,” he said. “It’s up to the accountant to empty those silos and put them together,” he said.

One of the firm’s clients, Davis-based Sudwerk Brewing, is seeking to address those complexities by implementing a brewery-specific accounting system known as OrchestratedBEER, he said. Like similar systems developed for the wine industry and otherwise, the program allows services such as the tracking of company revenues and costs down to the ingredient level for various brews.

The system is meant to be flexible enough for breweries of different scales and approaches.

“We’re fortunate that there are a lot of very good breweries up here in Northern California. We can talk to each other, and learn from each other. Everyone is finding a different way to grow,” Ms. Norgrove said.

SmartVault is now integrated with DigiBookx, a cloud-based automated accounting product that uses extraction technology to capture financial data from any type of file and upload to an accounting package.

Terri Eyden  for Accounting Web writes: SmartVault, a leading provider of software as a service (SaaS) online document storage and secure file sharing solutions, announced an integration with DIGIBookx, a powerful Cloud-based automated accounting solution that uses the latest extraction technology to quickly and accurately capture financial data from any type of file (receipts, invoices, bills, statements, etc.) and upload to an accounting package. The combination of these services supports a true paperless workflow and a completely automated accounting and bookkeeping process.

DIGIBookx, created by DIGIEON, a recognized leader in innovative document imaging software, uses a sophisticated learning engine to allow accurate extraction, verification, and validation of financial information. The extracted data is then used to populate QuickBooks entries, and the related source documents are automatically attached to the specific transaction in QuickBooks and available via the integrated SmartVault Toolbar. The accounting system is significantly strengthened as the system of record for all financial data as well as all related source files. 

"Accounting professionals are always looking for ways to increase efficiency by automating processes, and the bookkeeping process is a big one. It's how progressive, profitable firms operate," stated Darren Root, CPA, CITP, CMGA, and CEO of RootWorks LLC. "The integration between SmartVault and DIGIBookx supports a completely digital, accurate, and intelligent data automation process, which allows firms that focus on client accounting services to streamline their workflow and ultimately service more clients in less time. This is another example of the value of Cloud-based services and the efficiencies they create inside a firm." 

Bookkeeping and other write-up activities can utilize a huge number of man-hours to handle the data entry associated with these services. DIGIBookx as a service allows the client to completely automate their time-consuming, manual tasks, allowing them to reduce the expense of servicing their existing clients while also having the opportunity to expand their client base and generate higher revenues and profits. DIGIBookx performs the work of data extraction. Its unique intelligent learning system accurately populates the accounting system and seamlessly uploads the documents to SmartVault. With DIGIBookx, accounting professionals benefit from sophisticated features in an easy-to-use service, including:

• Automated accounting process to eliminate data entry
• Innovative patented technology for data extraction
• Automated export into QuickBooks and SmartVault
• Significant time and cost savings by eliminating manual transactions
• Intelligent process to provide accurate data
• Software tools for update, review, and audit

"What an amazing product and service! DIGIBookx has reduced my turnaround time and cost for data entry to QuickBooks by 65 percent. The DIGIBookx team is responsive, professional, and a delight to work with," stated Elissa Greeley, Intuit Certified Advanced ProAdvisor, ADOS Consulting, LLC.

"The excitement was palpable when our team first witnessed the technology. DIGIBookx is the answer to a completely 'keystrokeless' client accounting services process," said SmartVault founder and CEO, Eric Pulaski. "I strongly believe that to compete in the next five years, accounting automation tools like DIGIBookx are a must-have for firms of all sizes. This kind of integration is really exciting because it can offer immediate value to firms and a huge return on investment by eliminating manual tasks, which reduces cost and streamlines efficiencies to handle more profitable growth."

"SmartVault's patented integration with QuickBooks was the missing link for our DIGIBookx service," said Mike Holoubek, cofounder of DIGIEON. "The integration of the DIGIBookx Service with SmartVault is the complete automated solution for the accounting industry". 

DIGIBookx offers a free demo version for thirty days, and SmartVault also offers a free thirty-day trial. Visit www.smartvault.com/integration/digibookx to learn more. Customers can add one or multiple accounts to the DIGIBookx service. Pricing starts at $19.95 per month with a $100 setup cost per account and a per-transaction fee. SmartVault offers a special plan specifically for accountants with unlimited clients, storage, and QuickBooks company files for $35 per user per month. Information about SmartVault for Accountants can be found athttp://accountants.smartvault.com. Integration of the two services is free and is initiated once DIGIBookx is installed.

How Improving a Home Can Improve Your Tax Situation

Mark Steber for the HuffPo writes: It's summer and that usually means one thing for millions of Americans: Home Improvement Time. From painting, to yard and landscape improvements, to full-blown home renovations and additions, summer is the time when many homeowners work to spruce up or just maintain their residences. Aside for increasing your home's value (not to mention your personal satisfaction), did you know fixing up your home can help lower any future tax liability?

The tax rules regarding home improvements are fairly complex. There are also several benefits to claim, ranging from deductions for home purchase sales taxes to credits for making select energy-efficient improvements. In addition, you may be able to increase the cost basis of your home, a calculation that is determined by taking the original cost of your home plus any improvements made and less any energy or first-time homebuyer credits and casualty losses you can claim. The basis can help to reduce future gain and future tax exposure when it comes time to sell.

But before we look at what you can do to help save on taxes, we need to clear up how the IRS defines a home repair and a home improvement for tax purposes.

The terms "repairs" and "improvements" can be confusing as they are used regarding taxes and application to the value of your home, and each one has different implications. A repair or maintenance expense that fixes or simply maintains a part of the home is not tax deductible and cannot be added to the basis of your home, so there is no tax benefit here.

Yet a home improvement is much more of a tax benefit, because it adds to the value of your home and can then be added to the basis. For example, adding a new roof, an energy-efficient window or door, hot water heater, or even a new room are all considered improvements, as is landscaping. However, repairing a broken water pipe, fixing a leak in a roof with a patch, or painting your home would be a repair and not added to the basis, as these expenses are not tax deductible. While you own your home, keep a record of the cost of improvements you make that add value, such as landscaping, patios, swimming pools, decks, room additions and roof replacements.

When it comes time to sell, subtract the cost basis from the sale price to determine any gain. Currently, only the first $250,000 in gain ($500,000 of married filing jointly) is exempt from being taxed. Any gain above that may be subject to income taxes.

There are different rules for repairs or improvements made on a rental property, since repairs done on the rental home are a direct deduction against your rental income for the year. Any repairs done will be depreciated (using a prescribed formula) over a pre-determined useful life span based on tax rules. Depreciation allows you to deduct a percentage of the improvement each year and recapture the out of pocket cost as a benefit on the tax return. When you sell a rental property, you must subtract any depreciation you claimed to your basis and then determine your gain or loss on the sale.

The home is typically the largest single asset most taxpayers own, and it's often the one that takes the most work to keep in the best shape possible, in terms of both time and money spent. While you can't get time spent on home improvements back, you can often get some of your dollars returned either at tax time or when you sell, provided that you track of all of your costs as you own and work on your home. By having your receipts on hand, down the road when you sell your home, you can avoid hitting a big tax gain -- and a substantial tax bill. Like many things, a little time spent preparing now can help you enjoy the tax benefits in the future.

How Defense of Marriage Act Affects the Same Sex Mortgage Tax Deduction

Jeff Hammerberg for Gayapolis News writes: At first the extent of discrimination is subtle when it comes to real estate laws with same sex couples, not realizing the ramifications financially until they have actually bought a house together and it is time to file income tax. It is then that they realize that that the federal definition of marriage deprives them of the right to claim their mortgage tax deduction jointly. In short, this is like being penalized financially for not being heterosexual, especially if one partner passes away and the other is left holding the bag for paying all of the taxes.

The federal definition of marriage is known as DOMA, which stands for the Defense of Marriage Act. The Supreme Court may strike down this law, which has been challenged as unconstitutional, because it strictly defines marriage as being a union between a man and a woman and does not recognize the legal union of gay/lesbian couples.

Quite simply marriage is a legal status that provides both spouses various reciprocal protections, rights and obligations. LGBT marriage operates in the same way as heterosexual marriage in a handful of states. However they still do not have the same rights at the federal level that heterosexuals do and this has resulted in misery and even loss of property for some bereaved gay and lesbian partners who cannot afford to pay post-humus taxes.

There are states that allow same sex couples to be married but they have to file their federal income taxes separately because the Defense of Marriage Act prevents gay or lesbian marriages from being recognized by the Federal Government. This means that when the taxes are filed, only one partner can claim the tax deduction or the mortgage even though there is, in reality, two people contributing to the overall cost of the mortgage. 

The entire challenge to DOMA in the first place is based on the case of an 83 year old New York woman who was forced to pay $363,000.00 in real estate taxes after her same sex partner died because the government refused to recognize that she was married. These same taxes would not have applied if she had been married to a man.

The upshot is that married gays and lesbians have the same status as unmarried people ~ Two unmarried people who share a joint mortgage can split the mortgage in two and both partners can then claim the deduction. However keep in mind that the amount to be claimed must be higher than the standard deduction in order to be worth it. The clear advantage to filing as a married couple is that the joint contribution to the mortgage raises the deduction a lot higher. If a gay couple is not allowed to file jointly then that can be considered to be discrimination as the straight couple who lives just next door is allowed to file jointly and reap the financial rewards.

So at this point in time it does not really matter if you move to a state that allows gay marriage or not. As long as DOMA is not overturned and same sex marriages are not recognized this discrimination against same-sex couples that own joint real-estate will continue to exist.

When Clients Want Their Own Foundations

 ARDEN DALE for the Wall St Journal writes:  A lot of people like the idea of having a private charitable foundation of their own, but financial advisers caution they're not suitable for everyone.

When the time comes for clients to give, their advisers can help them decide if a foundation is better than using a donor-advised fund or charitable trust, or simply writing a personal check. How much money a client wants to give is a crucial determining factor, along with the right personality and the passion to make the foundation succeed.

Operating a foundation is akin to running a business, advisers say. It requires tax filings and other money-management tasks, establishing by-laws, holding meetings with a board of trustees and recording minutes, and much more.

What may seem like a great idea at the outset can turn into an administrative or financial nightmare for the wrong person. Without solid guidance, the over-eager may get burned. That's why some advisers consider them too much of a hassle, and steer their clients away.

"They're going to get annoyed, and if you're the adviser who got them into a tough spot, there's backlash," said David Diesslin, an adviser in Fort Worth, Texas.

But those clients who do choose a private foundation are often after certain things they can't get through donor-advised funds and other charitable vehicles.

They have more control over their investments and gifts. And they can run their own programs, make gifts directly to individuals, groups and families facing hardships, emergencies or medical distress, and grant scholarships. Someone who contributes to a donor-advised fund doesn't have such flexibility.

"It's great for people who want to go to the gala and hand the check right to the person," said Rich Polt, a spokesman for Foundation Source, which works with advisers and their clients to establish and help run new foundations.

The number of foundations has grown each year since 2000 (except for 2010). In 2011, there were some 73,764 independent, private foundations, up 8.1% from the previous year, according to the Foundation Center, which provides data on foundations.

For Mr. Diesslin of advisory firm Diesslin & Associates, it's all about heart and vision. If the idea of establishing a foundation isn't "owned by your client," he said, it likely won't work out well. He also has a dollar amount--$3 million--that he considers a rough minimum to commit to a private foundation. Only a handful of his clients have foundations.

Recently, Mr. Diesslin has been talking to a married couple who wants to set up a faith-related foundation with their parents and children. Serious philanthropists, the couple seeded the effort with a few hundred thousand dollars, with an eye toward putting $10 million to $15 million into it eventually.

The problem right now, he noted, is getting everyone in the family together so they can sit down and focus on the foundation. Everybody loved the idea of creating it, but scheduling has already become a stumbling block.

Beth Gamel, an adviser with Pillar Financial Advisors in Waltham, Mass., likens running a foundation to operating a business. Her advice: Don't set one up without the help of an attorney or accountant with specific experience in the niche. Explain to clients that the tax rules are complicated. Then, encourage them to keep good records and let the professionals handle the details.

One of her clients with a $10 million foundation had a hard time meeting the Internal Revenue Service requirement to give away 5% of a foundation's asset each year. In one instance, he ended up giving $300,000 to a donor-advised fund, which chose charities on his behalf.