Tuesday, January 28, 2014

Free Accounting Software: GnuCash 2.6.1 Released / Gets Improved Foreign Currency Reports

GnuCash, a personal and small-business financial/accounting software, freely 

 licensed under GNU GPL and available for GNU/Linux, BSD, Solaris, Mac OS X, and 

 Microsoft Windows platforms, is now at version 2.6.1.

Unlike the previous build, which included only a couple of fixes, GnuCash 2.6.1  (Click There To Learn of 2.6.1) is a lot bigger 

 and features some interesting changes.

Highlights of GnuCash 2.6.1: (Click There To Learn of 2.6.1)

• The share value of stocks in foreign currency is now displayed correctly;


• Security Type template is no longer hidden;


• The help button on New and Edit Job dialogs no longer brings up wrong help page;


• A critical error is no longer reported when initializing an Invoice;


• Account hierarchy column widths are no longer reset when restarting a second time without 

 changing the widths.
-
GnuCash is personal and small-business financial-accounting software, freely licensed under the GNU GPL and available for GNU/Linux, BSD, Solaris, Mac OS X and Microsoft Windows.
Designed to be easy to use, yet powerful and flexible, GnuCash allows you to track bank accounts, stocks, income and expenses. As quick and intuitive to use as a checkbook register, it is based on professional accounting principles to ensure balanced books and accurate reports.

GnuCash 2.6.1
Posted on 6:58 PM | Categories:

2013 Tax Planning: Strategies That Can Save You Money (Click To View)

Northwestern Mutual writes: 2013 Tax Planning: Strategies That Can Save You Money 


 No one enjoys paying income taxes, but avoiding them should never be your end goal. Instead,
 approach taxes with a mindset of generating and keeping the most amount of money in your pocket.

In this on-demand webcast, you’ll discover:
  • What’s new with tax law in 2013 and how it impacts you.
  • Best practices for lowering your annual tax liability.
  • The benefits of including tax planning as part of a broader, long-term financial strategy.
Posted on 6:35 PM | Categories:

Accounting Services App Bridges Gap Between Firms and Clients

CPA Practice Advisor writes:  It’s an ongoing challenge for many small businesses owners: finding time to sit down with their off-site accountant to go through queries on financial documents. Now a company has come up with an innovative solution designed to bridge this gap between the business and their accountant.
LedgerDocs is an online document management application and collaboration tool that allows businesses to scan and upload financial documents that can be accessed off-site by their bookkeepers who can then respond with questions and comments using the same platform.
The service is now integrated with DropBox, a leading provider of cloud storage and document sharing for personal and business users. Its wide range of functions simplifies the process of uploading and storing documents. Integrating LedgerDocs and DropBox provides a streamlined process for users to upload, manage, and share documents.
Typically, off-site bookkeepers spend a lot of their time trying to communicate with clients by phone, fax or e-mail, or they have to travel to clients’ offices where they sift through piles of paper sorting out receipts, invoices and other financial records they require to keep the company’s books balanced and up to date.
If a client is not available at the time to answer questions about the documents, the bookkeeper usually leaves notes and schedules a return visit or a follow-up call to get the answers. LedgerDocs puts the whole process online. In effect, it becomes a virtual shoebox coupled to functions that allow storage and sharing of documents and information and collaboration between bookkeepers and clients.
For example, clients scan and upload the documents to the LedgerDocs platform, and their bookkeepers then sort, search and file them quickly and efficiently and use the platform to send notes back clients requesting more information if necessary. The service is available 24/7 which adds to its convenience.
Faxing, phone calls, e-mails and face-to-face meetings to gather and clarify information can become the exception rather than the rule for bookkeepers using the new technology, says LedgerDocs founder Wayne Zielke.
“LedgerDocs is a pure document management system and not tied to any specific accounting software platform, so it can be used anywhere in the English-speaking world – and translations of the app into other languages is on the cards,” says Mr. Zielke.
And at a cost of only about $10 a month per client the return on investment when measured against the time saved is well worth it, he says.
“We wanted to develop an application that would lower the cost of business for bookkeepers by reducing travel time to clients’ offices while also enhancing the level of service they were providing,” says Mr. Zielke. “LedgerDocs does that, and the time it saves bookkeepers allows them to expand their business by taking on more clients.”
For clients, the benefit of LedgerDocs is their ability to deal with questions and requests for more information when it suits them, which is often after business hours, and then respond via LedgerDocs.
Mr. Zielke says LedgerDocs is one of the most advanced applications currently available in its field and is in line with global trends toward the use of digital technology in accounting services.
For example, he says a recent white paper published by the American Institute of Chartered Public Accountants based on research by Dr. Geoffrey Moore, one of the world’s leading business strategists, pointed to three fundamental trends that are changing the future of client accounting services as a result of the impact that computing and networking is having on human culture globally.
The three trends are:
  • The migration of text documents from paper to digital formats.
  • A migration from business affairs being conducted in person and at a specific location to being conducted online from whatever location is most convenient.
  • A transition in business organization from large integrated corporations that staff up internally to meet all their requirements to a hybrid global model in which core functions are still done internally but context functions are outsourced to specialist providers.
“LedgerDocs is perfectly aligned with these trends,” says Mr. Zielke. “We are meeting the needs of bookkeepers and their clients as they move into a digital age that will transform the way we do business.”
Posted on 5:40 PM | Categories:

MYOB hopes hiring blitz will help fend off Xero

Agnes S King for the Australian Financial Review writes:  Home-grown accounting software maker MYOB is in the throes of a hiring frenzy, adding new recruits at the rate of one a day as it gears up to defend its patch against rivals and release two new products.
The company, owned by United States venture capital group Bain ­Capital, has added 55 new full-time sales and support staff in Australia since December, and 25 contractors in its software development team.
“We want to improve the sales ­channel across the entire breadth of clients,” said Adam Ferguson, general manager of MYOB’s accountants division, which generated nearly half of the company’s $116 million gross income for the six months to June 30, 2013.
He said the company still has between 15 and 20 open positions, spanning product trainers, marketing and support staff, and software developers.
MYOB will launch a beta version of an online accounting software package for micro businesses in February. ­Pricing will be announced at MYOB’s roadshow in Auckland on February 11.
The company will also release a mobile version of its practice management software in March, allowing accountants to access core time billing, contact management and reporting systems from any where at any time.
MYOB hopes the ramp up slows the aggressive customer acquisition of ­relative newcomer and sharemarket darling Xero, which claimed in November to be signing 30 to 40 new accountants and bookkeepers a week to use its cloud-based accounting software.
“We need to stay at the front, to act like leaders,” said MYOB chief executive Tim Reed.

STATUS QUO DISRUPTED

Accountants started complaining about the sluggish speed of Xero’s software towards the end of 2013.
Xero ­Australia managing director Chris Ridd said he was not aware of any performance issues.
Xero did a complete upgrade of its infrastructure at the start of 2013. “I can assure you we’ve plenty of headroom in our architecture,” said Mr Ridd. “We’re constantly assessing scalability.”
The transition from desktop to cloud-based software accessible through a utility model, such as ­electricity drawn from a power socket, has disrupted the status quo in accounting software.
US software giant Intuit has designs on the Australian small and medium business accounting market, having parted ways with its long-time Australian distributor Reckon.
Intuit has upped its spend on Google AdWords and is rumoured to be bedding down a public relations campaign to roll-out in the first quarter of 2014.
CCH, a division of listed Dutch corporate information and software ­publisher Wolters Kluwer, also upped the ante last year, striking new alliances and attempting to claim a greater share of accountants’ wallets with the launch of a new practice management product.
Meanwhile, the fate of Reckon and its substantial install base hangs in the balance. Reckon can no longer use the Quicken brand (Intuit owns the rights) and its cloud solution – expected to be released last November – is still in beta.

RISKS OF RAPID EXPANSION

Reckon chief executive Clive Rabie said the company “has completely reinvented itself in the last year, with a new management team and new organisational structure”.
“Reckon is primed to execute fully on [its] cloud strategy in 2014,” said Mr Rabie.
Accountants are central to the battle for supremacy. Roughly 70 per cent of all accounting software sales are ­influenced by accountants’ ­recommendations.
MYOB’s board is acutely aware of the risk in such rapid expansion. Its ­Australian headcount, including new additions, will exceed 750.
However, doing nothing constitutes a bigger threat, Mr Reed said.
“I’d rather be sitting on this side of that equation than one where the market moves elsewhere,” said Mr Reed.
Posted on 3:29 PM | Categories:

401k or IRA

Over at Bogelheads we read the following discussion: 401k or IRAby sooppa » Sun Jan 26, 2014 6:41 pm
I have two 401ks from two old jobs, one is almost 50k, one is almost 20k.
I am paying $100 a year to Fidelity. I called them and asked if I could move to something without a fee. They suggested moving to a free IRA.

I am pretty clueless about it, is this good advice?

I know I shouldn't be so clueless, but it's all a little overwhelming when I've tried to look into it. I'm not stupid by any means, but i am stupid in this important matter, for sure! (Time is also an issue with two young kids!)

Thanks!

P.s how would I get a good financial planner? I tried calling Fidelity but I don't really want to go with the guy or girl who answers the phone (unless they blew me away with their knowledge which they never have.)
Posts: 2
Joined: 26 Jan 2014

Re: 401k or IRAby SteveKL » Sun Jan 26, 2014 8:31 pm

Welcome to the forum! You almost certainly do not need a financial planner. You will receive excellent advice here. Yes, you can move your 401k's into an IRA (a process called a "rollover") and that may be an excellent move on your part. But there are other options, and one of those may be a better fit for you.

Do you currently have a 401k or other retirement plan available at work?
Posts: 315
Joined: 3 Sep 2012

Re: 401k or IRAby Johm221122 » Sun Jan 26, 2014 8:45 pm

Welcome to forum,
Try getting started

John
Posts: 4113
Joined: 13 May 2011

Re: 401k or IRAby Jeff7 » Sun Jan 26, 2014 8:47 pm

A rollover can be done, straight into a traditional IRA. Wiki entry on rollovers.
(It must be a rollover. This does not mean that you cash out your 401k and then put that money into an IRA. If you do that, you will pay taxes on the money, and you may also incur an early-withdrawal penalty charge. The company where you'll be holding the IRA can help with the rollover process. The funds or investments are transferred directly from the 401k account to the IRA.)

- What are your fund options in the old 401k plans, along with their expenses? In some cases, the fund options in 401k plans are very good. But, in my opinion, it is worth it to put them into an IRA. This gives you much more control over what goes on with your investments. Funds like Vanguard Total Stock Market Admiral (VTSAX, ER = 0.05%) or Fidelity's Spartan Total Market Fund (FSTMX, ER=0.10%) are tough to beat in terms of cost and diversification.


- Financial planner? This forum works quite well for that purpose , and a nice spreadsheet can handle the rest.



Though some of the recommended reading isn't free:
This is my own recommendation: Bogleheads' Guide to Investing, or you could also go with the Bogleheads' Guide to Retirement Planning. I found there to be a good bit of overlap between the two.

Or if you're into reading something a lot longer: Common Sense on Mutual Funds. My summary of it is: Cost Matters. Diversify. Professional fund pickers aren't nearly worth their cost. People can't see the future, no matter how hard they try to sell you on the idea that they can.



Thanks to those books, and to this forum, I started a Roth IRA, and also dramatically increased my 401k contributions (I'd never even heard of an index fund until finding this forum), and I incurred $0 in financial service worker costs.
Posts: 175
Joined: 24 Nov 2012

Re: 401k or IRAby whaleknives » Sun Jan 26, 2014 8:54 pm

You can roll your old 401(k)'s into a new employer's 401(k) or an IRA in a personal account with Fidelity or another investment firm. Vanguard discusses it here: See if a 401(k) rollover is right for you:

  • "What you can do
    • Move a traditional 401(k) into a traditional IRA, tax-free.
    • Move a Roth 401(k) into a Roth IRA, tax-free.
    • Move a traditional 401(k) into a Roth IRA—this would be considered a "Roth conversion," so you'd owe taxes.
  • What you can't do
    • Convert a Roth 401(k) to a traditional IRA."

I prefer to consolidate accounts when permitted, to simplify my life. You can compare Vanguard to Fidelity and other firms.
"I'm an indexer. I own the market. And I'm happy." (John Bogle, "BusinessWeek", 17Aug2007) | International maritime signal flag W (Whiskey): "I require medical assistance."
Posts: 134
Joined: 24 Jun 2012

Re: 401k or IRAby JW Nearly Retired » Sun Jan 26, 2014 10:25 pm

sooppa wrote:I have two 401ks from two old jobs, one is almost 50k, one is almost 20k.
I am paying $100 a year to Fidelity. I called them and asked if I could move to something without a fee. They suggested moving to a free IRA.

I am pretty clueless about it, is this good advice?

I know I shouldn't be so clueless, but it's all a little overwhelming when I've tried to look into it. I'm not stupid by any means, but i am stupid in this important matter, for sure! (Time is also an issue with two young kids!)

If you are, or will eventually be, a highish income family there are good reasons not to rollover your old 401ks to an IRA. By high income I mean someone who cannot contribute directly to a Roth IRA. Currently for MFJ that right to contribute phases out over a MAGI range of $181k - $191k.

If you are high income having an existing rollover or other IRA snuffs out the "backdoor Roth" option.http://www.bogleheads.org/wiki/Backdoor_Roth_IRA
JW
Retired Summer 2013
Posts: 3341
Joined: 16 Dec 2007

Re: 401k or IRAby sooppa » Mon Jan 27, 2014 1:45 pm

Thanks for the thoughtful replies - it's exciting to have discovered this forum:
I currently am not working (am a mother of a toddler and a baby) but am starting to work again now - part time/freelance from home - so no current work retirement plan.
I would love to be "high income" one day, but my max wage ever was 95K and I'm nowhere near that now.

Jeff in answer to your questions, here are my allocations (and anybody's feedback is welcome - I like the suggestion of Vanguard or Fidelity for an Ira, thanks for that)

401k #1 is "moderately aggressive" with $18K. I am coming up on 40th bday.
PIMCO: tot rtn; inst....14%
Vanguard Instl Indx; Inst.....35%
Fidelity Sp ltl ldx; Inst......33%
Vanguard Md-Cp Idx;Inst....17%

Since last quarter (Oct 2013) they seem to have moved 1% from Pimco to Vanguard Md-cp, but that's it. (Is this little movement just to prove they are earning their $100 a year?!)
It says since enrollment, the account has increased $2K "since enrollment" (it calls 'enrollment" since 7/5/13, when I actually signed up for this 401k in 2004".
Iit has increased 1K in last quarter (10/11/13-1/10/14).

401k #2 has 48k

AF AMCAP R6...15%
Dodge & Cox Stock....5%
Fid Freedom K 2040....17%
MSIF Mid Cap Grth I...10%
PIM Total Rt Inst...8%
Sptn 500 Index Inst....30%
1st Eagle Overseas...15%

If I'm reading it correctly, it looks like the allocations haven't changed since last quarter, (and will stay the same next quarter) and it gained almost 10K from Jan-Dec 2013. Great news after seeing such a sink...
This one doesn't say the increase since enrollment (that I can see)
Posts: 2
Joined: 26 Jan 2014

Re: 401k or IRAby Laura » Mon Jan 27, 2014 10:48 pm

If these are your only investments then I suggest rolling both over to Vanguard and investing in a Target Retirement fund. With just one fund you can invest in the US stock and bond market and the international stock and bond market. Vanguard will do the work of maintaining your asset allocation for you. Ignore the date on the fund and instead, pick the fund with the asset allocation that matches your target.

However, we normally recommend you look at all investment accounts together so you should blend this with your husband's accounts to have one broadly diversified portfolio that crosses all accounts.

Laura

by sooppa » Sun Jan 26, 2014 6:41 pm

I have two 401ks from two old jobs, one is almost 50k, one is almost 20k.
I am paying $100 a year to Fidelity. I called them and asked if I could move to something without a fee. They suggested moving to a free IRA.
I am pretty clueless about it, is this good advice?
I know I shouldn't be so clueless, but it's all a little overwhelming when I've tried to look into it. I'm not stupid by any means, but i am stupid in this important matter, for sure! (Time is also an issue with two young kids!)
Thanks!
P.s how would I get a good financial planner? I tried calling Fidelity but I don't really want to go with the guy or girl who answers the phone (unless they blew me away with their knowledge which they never have.)
Posts: 2
Joined: 26 Jan 2014

Re: 401k or IRAby SteveKL » Sun Jan 26, 2014 8:31 pm

Welcome to the forum! You almost certainly do not need a financial planner. You will receive excellent advice here. Yes, you can move your 401k's into an IRA (a process called a "rollover") and that may be an excellent move on your part. But there are other options, and one of those may be a better fit for you.
Do you currently have a 401k or other retirement plan available at work?
Posts: 315
Joined: 3 Sep 2012

Re: 401k or IRAby Johm221122 » Sun Jan 26, 2014 8:45 pm

Welcome to forum,
Try getting started
John
Posts: 4113
Joined: 13 May 2011

Re: 401k or IRAby Jeff7 » Sun Jan 26, 2014 8:47 pm

A rollover can be done, straight into a traditional IRA. Wiki entry on rollovers.
(It must be a rollover. This does not mean that you cash out your 401k and then put that money into an IRA. If you do that, you will pay taxes on the money, and you may also incur an early-withdrawal penalty charge. The company where you'll be holding the IRA can help with the rollover process. The funds or investments are transferred directly from the 401k account to the IRA.)
- What are your fund options in the old 401k plans, along with their expenses? In some cases, the fund options in 401k plans are very good. But, in my opinion, it is worth it to put them into an IRA. This gives you much more control over what goes on with your investments. Funds like Vanguard Total Stock Market Admiral (VTSAX, ER = 0.05%) or Fidelity's Spartan Total Market Fund (FSTMX, ER=0.10%) are tough to beat in terms of cost and diversification.



- Financial planner? This forum works quite well for that purpose , and a nice spreadsheet can handle the rest.




Though some of the recommended reading isn't free:
This is my own recommendation: Bogleheads' Guide to Investing, or you could also go with the Bogleheads' Guide to Retirement Planning. I found there to be a good bit of overlap between the two.
Or if you're into reading something a lot longer: Common Sense on Mutual Funds. My summary of it is: Cost Matters. Diversify. Professional fund pickers aren't nearly worth their cost. People can't see the future, no matter how hard they try to sell you on the idea that they can.




Thanks to those books, and to this forum, I started a Roth IRA, and also dramatically increased my 401k contributions (I'd never even heard of an index fund until finding this forum), and I incurred $0 in financial service worker costs.
Posts: 175
Joined: 24 Nov 2012

Re: 401k or IRAby whaleknives » Sun Jan 26, 2014 8:54 pm

You can roll your old 401(k)'s into a new employer's 401(k) or an IRA in a personal account with Fidelity or another investment firm. Vanguard discusses it here: See if a 401(k) rollover is right for you:
  • "What you can do
    • Move a traditional 401(k) into a traditional IRA, tax-free.
    • Move a Roth 401(k) into a Roth IRA, tax-free.
    • Move a traditional 401(k) into a Roth IRA—this would be considered a "Roth conversion," so you'd owe taxes.
  • What you can't do
    • Convert a Roth 401(k) to a traditional IRA."
I prefer to consolidate accounts when permitted, to simplify my life. You can compare Vanguard to Fidelity and other firms.
"I'm an indexer. I own the market. And I'm happy." (John Bogle, "BusinessWeek", 17Aug2007) | International maritime signal flag W (Whiskey): "I require medical assistance."
Posts: 134
Joined: 24 Jun 2012

Re: 401k or IRAby JW Nearly Retired » Sun Jan 26, 2014 10:25 pm

sooppa wrote:I have two 401ks from two old jobs, one is almost 50k, one is almost 20k.
I am paying $100 a year to Fidelity. I called them and asked if I could move to something without a fee. They suggested moving to a free IRA.
I am pretty clueless about it, is this good advice?
I know I shouldn't be so clueless, but it's all a little overwhelming when I've tried to look into it. I'm not stupid by any means, but i am stupid in this important matter, for sure! (Time is also an issue with two young kids!)
If you are, or will eventually be, a highish income family there are good reasons not to rollover your old 401ks to an IRA. By high income I mean someone who cannot contribute directly to a Roth IRA. Currently for MFJ that right to contribute phases out over a MAGI range of $181k - $191k.

If you are high income having an existing rollover or other IRA snuffs out the "backdoor Roth" option.http://www.bogleheads.org/wiki/Backdoor_Roth_IRA
JW
Retired Summer 2013
Posts: 3341
Joined: 16 Dec 2007

Re: 401k or IRAby sooppa » Mon Jan 27, 2014 1:45 pm

Thanks for the thoughtful replies - it's exciting to have discovered this forum:
I currently am not working (am a mother of a toddler and a baby) but am starting to work again now - part time/freelance from home - so no current work retirement plan.
I would love to be "high income" one day, but my max wage ever was 95K and I'm nowhere near that now.
Jeff in answer to your questions, here are my allocations (and anybody's feedback is welcome - I like the suggestion of Vanguard or Fidelity for an Ira, thanks for that)
401k #1 is "moderately aggressive" with $18K. I am coming up on 40th bday.
PIMCO: tot rtn; inst....14%
Vanguard Instl Indx; Inst.....35%
Fidelity Sp ltl ldx; Inst......33%
Vanguard Md-Cp Idx;Inst....17%
Since last quarter (Oct 2013) they seem to have moved 1% from Pimco to Vanguard Md-cp, but that's it. (Is this little movement just to prove they are earning their $100 a year?!)
It says since enrollment, the account has increased $2K "since enrollment" (it calls 'enrollment" since 7/5/13, when I actually signed up for this 401k in 2004".
Iit has increased 1K in last quarter (10/11/13-1/10/14).

401k #2 has 48k
AF AMCAP R6...15%
Dodge & Cox Stock....5%
Fid Freedom K 2040....17%
MSIF Mid Cap Grth I...10%
PIM Total Rt Inst...8%
Sptn 500 Index Inst....30%
1st Eagle Overseas...15%
If I'm reading it correctly, it looks like the allocations haven't changed since last quarter, (and will stay the same next quarter) and it gained almost 10K from Jan-Dec 2013. Great news after seeing such a sink...
This one doesn't say the increase since enrollment (that I can see)
Posts: 2
Joined: 26 Jan 2014

Re: 401k or IRAby Laura » Mon Jan 27, 2014 10:48 pm

If these are your only investments then I suggest rolling both over to Vanguard and investing in a Target Retirement fund. With just one fund you can invest in the US stock and bond market and the international stock and bond market. Vanguard will do the work of maintaining your asset allocation for you. Ignore the date on the fund and instead, pick the fund with the asset allocation that matches your target.
However, we normally recommend you look at all investment accounts together so you should blend this with your husband's accounts to have one broadly diversified portfolio that crosses all accounts.
Laura
Posted on 3:12 PM | Categories:
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