Coaxing accountants into Spotlight / Spotlight Reporting : Business Intelligence & Analytics for Quickbooks Online & Xero

Hamish Macnicol for  Stuff.Co.Nz writes: Helping accountants switch from poking through shoeboxes for receipts to advisers who make their clients successful gets Richard Francis out of bed in the morning.

And after a $3 million capital injection this year, his business has rapidly grown to being on the cusp of seven-figure turnover, as it looks to become the number one toolset in the Xero ecosystem.

Spotlight Reporting was established in 2010 because chief executive Richard Francis' own accounting practice, Francis Consulting, needed cloud-based software to provide good business intelligence to its clients.

"I'd always been interested in software and really I was looking for a cloud product that could produce reports, forecasts, dashboards, quickly and effectively at the push of a button using Xero's API (application programming interface).

"There was nothing out there so I started developing my own product, got together a really good team and next thing I knew we were really getting demand from a lot of other accounting practices." Spotlight Reporting's four products include an application of the same name that creates performance reports. 

Spotlight Forecasting, meanwhile, builds simple cashflow forecasts and scenario budgets, and is being redeveloped to a fully featured desktop product, where Francis said there was a big gap in the market.

Spotlight Dashboard tracks key business metrics, and Spotlight Multi is aimed at franchises and not-for-profit organisations which can import, analyse and compare up to 1000 Xero organisations.

Prices range from about $69 a month to $229, depending on the tools required and size of the user.

Francis said the products basically did some of the things Xero did not do and could not be expected to do, like multi-currency consolidation. It has also integrated with QuickBooks Online, Xero's rival in the United States, and was currently integrating with retail software firm Vend as well.

"We take the data, we mash it up and we come up with trends and analyses which a typical accounting system like QuickBooks or Xero can't really do.

"So we have this really good data mash up and that was just something quite unique in the market, ended up selling the software to other accountants all around the world." Spotlight Reporting had since grown to seven offices across New Zealand, Australia, the US and United Kingdom.

Sales were growing at 100 per cent a year, Francis said, and the business had grown from three staff to 15.

He expected it would employ 30 people next year.

"That's what basically gets me out of bed in the morning, is being part of an industry that's seen as boring and reactive and doing stuff that no one really wants, to transform that into accountants being advisers, doing useful s... that actually makes their clients successful.

"That's been my mantra ever since I started out in the profession and realised that poking through shoeboxes of receipts was pretty ordinary." Francis, a chartered accountant, is a director of Wellington open-source software development company Silverstripe, where he was formerly chief financial officer. His wife, Julie, continues to run Francis Consulting.

Spotlight Reporting raised $3m in investment capital in June, and wanted to become the number one toolset for Xero across Australasia and the UK.

Francis said the company now had some "heavyweight backers", including MYOB founder and Xero director Craig Winkler, former Xero chairman Sam Knowles, Xero director Graham Shaw, Snapper chief executive Miki Szikszai and Vend and Xero investor David Wilson. He said their backing was a strong endorsement.

The capital had helped fast-track the company's overseas expansion, he said. He thought about 25 per cent of the accounting market "intuitively" understood Spotlight Reporting's products.

"We don't need to be the size of Xero because we're a more niche product; we're targeting the smart-end of the accounting profession.

"There's still a lot of accountants who are quite happy just pumping out tax returns, sitting in their little hen huts, but we're trying to convince them in the end to come towards the light."

I have a taxable account at a discount brokerage, and I purchase stocks on margin. How do I write off the margin interest?

Sara Max for Money / Time, Inc. writes:  : You can deduct all kinds of expenses related to investing, and that includes margin interest. But, as you would probably expect, there are some caveats.

 

For one thing, before you can deduct margin interest you’ll need to first calculate your net investment income by subtracting any other related write offs. “If you made $1,000 in dividends and have spent $800 on deductible investment expenses, that means you can deduct no more than $200 in margin interest,” says Leon LaBrecque, a CPA and CFP, and managing partner of LJPR in Troy, Mich.

These expenses must be reasonable and necessary, and typically include such costs as investment advisory fees, safety-deposit box rentals, and subscriptions for research or investment-related publications. If you have investment losses or costs associated with real estate investments (but not rental property), those get factored in here too.

You’ll of course need to itemize your deductions, rather than taking the standard deduction. If your interest paid should happen to exceed your net investment come in any given year, you can carry it over to the next.

Keep in mind too that “you can only deduct what you’ve actually earned in taxable investment income,” LaBrecque says. Eligible investment income includes interest, stock dividends, capital gains and royalties. It doesn’t include tax-exempt securities, such as municipal bonds, or option straddles. Note: if you include long-term capital gains or qualified dividends in this equation, you give up the more favorable (15%) rate, “but in some circumstances it might make sense to do that,” LaBrecque adds.

Finally, you can only deduct margin interest if you used the proceeds to generate (or attempt to generate) taxable income. If you used a margin to buy tax-exempt bonds or sail around the world, none of that interest is deductible.

Of course, relative to investing with borrowed money, figuring out how to deduct the interest should be a cakewalk. Buying securities with margin is risky business. “There’s not just the chance that you’ll lose money, but that you’ll owe money,” says LaBrecque. “If a stock goes down enough you can really get wiped out.”

Bitcoins and Your 2014 Tax Return Bitcoins lost more than half their value in 2014 so bitcoin owners can file for capital losses as a result.

Kent McDill for Millionaire Corner writes:  In March of 2014, the Internal Revenue Service made a decision regarding bitcoins, and that decision will affect the tax returns of anyone who sold a bitcoin or paid for something using the new virtual currency.

“Currency’’, in this case, is a controversial word because the IRS decided that virtual currency like bitcoins is not, in fact, a currency, but instead is property and is treated that way for tax considerations.

What that means from a tax standpoint is that any exchange of bitcoins from buyer to seller is subject to the same tax considerations of property, and the main tax consideration is capital gains.

The good news for bitcoins users is that the value of bitcoins plummeted in 2014, and it is likely the value paid for the bitcoin was higher than the value it had when it was sold or used for a purchase. The bad news is the bitcoin owner has to prove it.

Starting from the beginning, bitcoins are, according to the IRS, “a digital representation of value that functions as a medium of exchange, a unit of account and/or a store of value.” Their value is determined in a similar way to the way company stock is valued, and as such, the value changes many times every day.

The IRS looks at bitcoins just as they do company stock, and Americans are taxed (for capital gains) on the positive difference between what is paid for the property and what is received back when the property is sold. In the case of bitcoins, “sold’’ includes “used in transaction” as many companies now accept bitcoins for purchase.[snip]/ The article continues @ Millionaire Corner, click here to continue reading....

Irate TurboTax Users Can Get Free Upgrades Or HR Block Substitute

Janet Novack  for Forbes writes:  “Shame on you, Intuit!” John Olsen, a Missouri estate and insurance planning consultant declared on Facebook and LinkedIn this week. In an interview, he had even more choice words about Intuit,  the “unconscionable” changes it has made to its market leading TurboTax software, and its “complete contempt for its customer base.” After recommending TurboTax to other financial pros for 20 years, he said, he now has “every intention of bad mouthing Intuit whenever I get the chance.”\

What’s riling Olsen and other long-time users is this: the boxed software/download version of TurboTax Deluxe + State for 2014 lists for the same $69.99 as did the 2013 version (you can currently buy the 2014 version for $59.99 on the TurboTax site and $49.97 on Amazon). But you can no longer use Deluxe to electronically file a Schedule D , for capital gains and losses; Schedule C, for profit and loss from a sole proprietorship business; Schedule E, for rental real estate, royalties and distributions from partnerships; or Schedule F, for farm income. While you can report dividends and mutual fund capital gain distributions through Deluxe, investors who sold any stock or assets need to trade up to Quicken Premier (list $99.99, selling for $89.99 through TurboTax’s site and $79.97 on Amazon) to E-file. For a sole proprietorship with more than $100 of deductions in certain categories, even Premier won’t do. To E-file, you’ll need Quicken Home & Business (lists at $109.99, selling for $99.99 on TurboTax and $89.97 on Amazon). [snip]/ The article continues @ Forbes, click here to continue reading....

Many TurboTax Users are Fuming. Here’s Why

Krystal Steinmetz  for MoneyTalksNews.com writes: Millions of Americans turn to TurboTax to help them prepare their taxes. But a change in this year’s desktop version of its best-selling TurboTax Deluxe has angered many users.

ConsumerWorld.org founder Edgar Dworsky said this year’s TurboTax Deluxe edition, which runs about $50, no longer includes the questions necessary to fill in Schedule C, D and E, which deal with self-employment, investments and rental income. If you want the forms, you’re forced to upgrade to other versions of TurboTax at a cost of $30 to $40.
Dworsky said:

What a clever ploy. Yank out key parts of the program that people have used for years, and then charge them more money to get back the missing pieces. Imagine the reaction of perhaps millions of regular TurboTax users who may learn partway through doing their taxes that they have to pay an upgrade fee just to get the same functionality they’ve always enjoyed. They are not going to be happy.

Dworsky is right. Many TurboTax customers are irate. Check out some of their comments on Amazon here, where 486 of the 598 reviewers give the program a dismal one-star rating.

According to NBC, Intuit said the changes were necessary to provide “consistent product functionality” across its various platforms. The online version of the program had the change in place before the desktop version.

TurboTax spokesperson Colleen Gatlin told NBC News the company has been “very proactive” in letting people know what’s going on. “The majority of the customers who understand the changes are OK with it,” she said.

SavingAdvice.com said H&R Block is offering a free copy of its deluxe tax software to consumers who have purchased TurboTax and are frustrated with its changes. Many of the forms and schedules that are missing from this year’s TurboTax Deluxe version are still included in H&R Block’s tax software. SavingAdvice.com said:

This isn’t an official offer which can be found [on] the H&R Block website, but an email campaign. For those who have already purchased TurboTax Basic or Deluxe and who would like to try the H&R Block tax software, they can email H&R Block at SwitchToBlock@hrblock.com – the following information must be included to get the software:
• Name, address and phone number.
• Type of operating system in use (Windows/Mac).
• A photo, scan or email showing proof of TurboTax Basic or Deluxe purchase.

A TurboTax spokesperson told CBS Philly that TurboTax has provided free upgrades to some of its customers who complained.
Do you use TurboTax? What do you think about its changes to the desktop version of the new TurboTax Deluxe? Share your thoughts below or on our Facebook page.

According to NBC, Intuit said the changes were necessary to provide “consistent product functionality” across its various platforms. The online version of the program had the change in place before the desktop version.

TurboTax spokesperson Colleen Gatlin told NBC News the company has been “very proactive” in letting people know what’s going on. “The majority of the customers who understand the changes are OK with it,” she said.

SavingAdvice.com said H&R Block is offering a free copy of its deluxe tax software to consumers who have purchased TurboTax and are frustrated with its changes. Many of the forms and schedules that are missing from this year’s TurboTax Deluxe version are still included in H&R Block’s tax software. SavingAdvice.com said:

This isn’t an official offer which can be found [on] the H&R Block website, but an email campaign. For those who have already purchased TurboTax Basic or Deluxe and who would like to try the H&R Block tax software, they can email H&R Block at SwitchToBlock@hrblock.com – the following information must be included to get the software:
• Name, address and phone number.
• Type of operating system in use (Windows/Mac).
• A photo, scan or email showing proof of TurboTax Basic or Deluxe purchase.

A TurboTax spokesperson told CBS Philly that TurboTax has provided free upgrades to some of its customers who complained.

Do you use TurboTax? What do you think about its changes to the desktop version of the new TurboTax Deluxe? Share your thoughts below or on our Facebook page.
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