Wednesday, February 4, 2015

Workbox Software LLC Goes Global with Multi-Currency Functionality for Its Flagship iPad Accounting App for Small Businesses

Invoices Generated in Nine Major Languages. Currency Conversion Rates Updated Multiple Times During Business Day.

Workbox Software LLC, a New York City-based software development company, announced today that the latest version of its flagship iPad app, Workbox 3.0, now allows users to operate in multiple currencies, deal with value-added taxes, and invoice clients in one of nine major languages.

Bob Glass, founder of Workbox and a software developer with more than three decades of experience, explained, "International business is now the playing field of the entrepreneur as well as the multinational conglomerate. Multiple currency accounting and non-English invoicing were the next logical steps for Workbox."

Workbox, currently in the top 100 finance apps at the Apple Store, provides most of the day-to-day accounting functions entrepreneurs need to run their businesses.

Among the new features for Workbox are:

- Invoices can be printed in English, French, German, Italian, Spanish, Portuguese, Russian, Ukrainian and Chinese;

- Billable expenses can be entered in the home currency of the business and automatically converted to the client's currency. Currency rates are updated multiple times during the day and are provided by openexchangerates.org;

- The system now handles the Value Added Tax [VAT]; and

- Upon entering a client payment, the system can send the client a payment receipt via email.

Mr. Glass added, "Another important feature is the ability of a business to keep track of their expenses in their 'Home' currency, while billing clients clients in a different currency. It means that a business in France can say they are euro-based. If they have clients in Switzerland, those clients receive bills in Swiss francs while clients in Russia receive theirs in rubles. This makes Workbox a truly global app suitable for any business operating in most of the largest economies in the world."

About Workbox
Workbox is already a robust iPad accounting app for small businesses. Designed as a supplement to full-blown but desktop-bound accounting packages, Workbox addresses the needs of an increasing mobile marketplace. Built-in timers record hours worked for each client, and the Workbox users can keep track of time worked, billable appointments, products sold and services provided. It can handle both one-time and recurring fees and expenses relying on a highly intuitive interface. Workbox also greatly facilitates the billing process, not only generating bills but also tracking accounts receivable. It allows the small businessperson on the move to enter client payments and access a full suite of reports. And all of it from the user's iPad.

Mr. Glass concluded, "We designed Workbox to provide the entrepreneur on the go with the powerful kind of accounting tools that slash administrative time and ensure accuracy in the accounting department. With a globalized economy, even for one-man operations, it is necessary to have the ability to move seamlessly from dollars to euros to rubles to francs. Workbox makes that possible, and the iPad platform lets you take it anywhere."

For further information see workboxsoftware.com or send email to info@workboxsoftware.com
Posted on 1:20 PM | Categories:

Quickbooks vs. Xero – Perspective on Bank Reconciliations

AngelBiz for SmallBizViewPoints.com writes: n what is becoming an interesting race for superior accounting software, two companies are leading the way. Most have heard of QuickBooks, an industry standard that has been around in some type of iteration for several years. The newcomer, Xero, is relying on cloud technology and a savvy design to win over a new generation of small business owners.

There are countless facets of both pieces of software that can be debated. Each likely does one thing better than the other, but here we will talk about some key features, beginning with bank reconciliations.

What are bank reconciliations?
Reconciling bank accounts is the reason small business owners are even in the market in the first place shopping for accounting software. In buying software, the goal is to make sure all the money going in and going out on your screen actually matches up with what’s going on in your bank account. An Excel spreadsheet relies on a numbers person to do that manually.

Bank reconciliations also make sure invoices clear on time and bills are kept current paid on time. It’s essentially the real-time cashflow ticker of your entire business and it can help you make better decisions.

Ok, so who’s better?
Instead of who’s better, the better question is what does QuickBooks and Xero offer when it comes to bank reconciliations? Both can handle the task, but the user experience is drastically different.
QuickBooks takes a search engine-type approach to reconciliations. As you write checks or make deposits, transactions are recorded in your QuickBooks and then matched in a separate portal with the bank’s records. If you want to review and refine those transactions, you need to find the transactions on the QuickBooks workbook end and have the software search for it in the separate portal with bank records.

Xero does things a bit differently. It matches invoices and receipts with account transactions, with a goal of preventing errors and potentially any fraudulent charges. It’s designed to automatically import all expenses from credit card, checks and bank account withdrawals automatically.
To verify information is correct, it’ll line up a check, for instance, with an amount that was withdrawn from your account. If it looks legitimate, simply hit the big green button and presto. Instead of recording that information essentially in two portals, Xero’s automated approach speeds things up a bit.

On-the-go
Xero is built from the ground-up with cloud technology in mind, meaning the business owner who’s on the go can always be connected to the financial health of his or her business.
QuickBooks has started offering its services, as well, in the cloud, feeding the demand from consumers.

Is one better than the other? As long as you can accurately make sure money coming in and going out is reflecting correctly to the dime, than you’re doing ok. If you’d want a more efficient way of doing things, you might want to explore switching vendors.
Accounting software does a lot of the same thing, but the user experience can make or break a business’ financial department. 
Posted on 9:39 AM | Categories:

How much you’ll pay if you do your own taxes


Jonnelle Marte for the Washington Post writes: When it comes to tax returns, most taxpayers prefer to drop the paperwork off at someone else’s desk and wait to hear how big of a refund they’ll be receiving — or how big of a check they’ll have to write.
For those in the minority who prefer to do their own taxes, the decision typically comes down to price and ease of use. Some software companies will connect taxpayers with experts on the phone or online when they get stuck. Tax companies may also offer audit assistance, which can be reassurance for people worried about messing up. Once people find a system that works, they’re likely to stick with it until they have a reason to look elsewhere. “It’s always easier to ride the same horse than to get on a new one,” says Roberton Williams, an economist with the nonpartisan Tax Policy Center.
That’s partly why so many TurboTax customers were up in arms this tax season when the company tried to change the TurboTax Deluxe desktop software they’ve previously used to prepare their tax returns, requiring customers to upgrade to a more expensive program — paying up to $30 more — if they wanted to prepare and file investment-related forms.
After many customers complained in online forums and threatened to switch to a competitor, TurboTax backed down, making it so that customers could upgrade for free this year and so that TurboTax Deluxe will include those forms again next year.
“You want your TurboTax desktop product to do what it always has done – handle the same tax situations as it did in years past,” Sasan Goodarzi, general manager for TurboTax said in a note to customers.”We’ve heard you, and we’re going to fix it.
The incident is a reminder for taxpayers to make sure the system they’ve used to file tax returns is offering them the best deal. Many people might save money by filing their returns from home using one of the free or relatively cheap options for tax preparation software available online.
But before you spend time wading helplessly through tax forms and income statements at home, it helps to know just how much you might have to spend to do-it-yourself.  Even taxpayers with more complicated returns may pay less than if they hired an accountant.
Of course, not all professional tax preparers and accountants charge steep fees. And as one reader commented last week, some taxpayers wouldn’t mind paying for the peace of mind that comes having an expert walk you through the process. SNIP, the article continues @ the Washington Post, click here to continue reading...
Posted on 9:36 AM | Categories:

10 Tax Benefits for College Students


TaxAct writes: College can be expensive, but the IRS offers a number of tax benefits for college students to make higher education more affordable for more Americans.
Whether you’re a parent of a college student or paying your own way through school, here are 10 important things to know about college and taxes:

1 File even if you don’t have to.

Technically, you only have to file a tax return if you reach a certain level of income.
For example, if you were a dependent who earned more than $6,100 or an independent single filer who earned more than $10,150 in 2014, you’re required to file.
But even if you earned less than that, you might be due a refund if your employer withheld taxes from your check.
Take 20 minutes to file, and you might discover you’re owed a refund.

2 Consider going alone.

In most cases, it makes perfect sense for a traditionally aged college student to remain a dependent for tax purposes.
But there are certain situations in which it might be advantageous for a college student to file his or her own return.
For example, some higher education tax credits are only available to moderate income earners. If parents earn too much to qualify, the student might be better off filing independently.

3 Check out the Lifetime Learning Credit.

The Lifetime Learning Credit is one of two tax credits available to cover college tuition. It will pay up to $2,000 per year per family to help cover qualified educational expenses.
The credit is good for every year in which a student is enrolled in college, graduate school or part-time learning.

4 Apply for the American Opportunity Tax Credit.

The American Opportunity Tax Credit is even more generous, offering up to $2,500 per year per student, compared to the Lifetime Learning Credit cap of $2,000 per family.
One drawback: You can only claim it for four years per student, so no credit for graduate work.

5 The AOTC might pay you!

One more excellent perk of the American Opportunity Tax Credit: The $2,500 credit is refundable, meaning that if you owe less than $2,500 in taxes, you’ll get a refund in the amount of the difference.
If you’re eligible for the Lifetime Learning Credit and the American Opportunity Credit for the same student in the same year, you can only choose one credit, but not both.

6 Deduct your student loan interest.

Tens of millions of current college students and college graduates make student loan payments every month. Like mortgage interest, student loan interest is deductible (up to a limit of $2,500).
Even better, you can take the deduction even if you don’t itemize.

7 Get a refund for work-study.

Unlike other types of college financial aid (like grants and scholarships), the money you earn from a work-study job is considered taxable income.
But that’s not all bad.
The school will withhold income taxes from your paychecks. So when it’s time to file your taxes in April, you will likely get a refund.

8 Pay college expenses tax-free.

There are two types of college savings accounts that every parent of a future college student should know about: 529 plans and Coverdell Education Savings Accounts.
In both cases, money in the accounts grow tax-free, but even better, you can withdraw money tax-free if the funds are used to pay education expenses.

9 In a crunch, tap the IRA.

It’s generally not a good idea to make an early withdrawal from a retirement account. Not only are you taxed on the cash, but you’re also hit with a 10% penalty.
There’s a loophole, though, for qualified education expenses.
If you withdraw money to pay for college costs, you’ll still owe taxes, but the 10% penalty is waived.

10 Geography matters.

If you attend school in a different state than your tax home (aka your parents’ house), make sure you pay taxes on any earnings from both states.
For example, if you have a summer job at home and a part-time job at school, different tax rates may apply.
You might even get lucky and work in a state without income tax. Read up on both states’ tax laws and be prepared to file twice if necessary.
Posted on 9:31 AM | Categories:

eFile4Biz Helps The 1099 Filing Process -- But Perhaps Only A Short Term Opportunity?

Ben Kepes for Forbes writes: Tax time, don’t you love it? Apart from the not inconsequential fear that you’re all of a sudden going to find out that you owe the IRD a heap of cash there is the entire process to think of – all of the paperwork and manual form filing. Pretty much if you took the perfect example of what Government 2.0 would be like, tax filing would be the exact opposite.
So a new integration from eFile4Biz (and yes, as an aside, that is possibly the worse business name ever) into small business accounting platforms QuickBooks and Xero looks set to help this process along. eFile4Biz, already an accredited e-filing provider with the IRS, is now integrated into QuickBooks and Xero meaning that users can import business data from their accounting package directly into eFile4Biz – thus saving time and removing the potential for manual data entering errors. Once uploaded, the eFile4Biz service takes care of the e-filing part of the process.  
It’s a logical integration, but one which raises some questions in my mind. I’m not a US resident but live in a country which already has a relatively high level of e-government services integrated. I’ve also been part of an advisory group working with our own internal revenue service to look at how to streamline the process of tax filing. Government agencies realize that the future will be typified by direct integrations between Governmental services and end user systems of record.
SNIP.  The article continues @ Forbes, click here to continue reading.....
Posted on 6:39 AM | Categories:

ROTH not available - What Tax Efficient Options are?

Over at Bogleheads we came across the following discusison:

ROTH not available - What Tax Efficient Options are?

Postby Grt2bOutdoors » Tue Feb 03, 2015 10:34 am
This is based on my own future planning, not anything proposed so let's leave out any thing that is being reported in the news particularly the WSJ as I don't want this post to get locked.

What other options do I have from a tax-efficient perspective when saving for retirement if a ROTH (upfront or backdoor) and after-tax 401K converted to a Roth is not available to me? I can think of the following, any others have I missed?:

Traditional non-deductible IRA
After-tax broadly diversified total market index funds
I bonds
EE bonds
Now the dreaded and sometimes controversial "variable annuity".
529 plan

Have I left anything else out?
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Re: ROTH not available - What Tax Efficient Options are?

Postby House Blend » Tue Feb 03, 2015 11:07 am
Health savings account
If you count index funds, you should also count Muni bonds.
I would also count (individual) stocks that don't pay dividends.

I don't count Flex Spending Accounts. Yes, they are useful, but money has a very short lifetime in those accounts.

Also, Money Market Funds are extremely tax-efficient. If your marginal tax rate is 50%, the tax cost of using Prime MMF in taxable is half a basis point.
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Re: ROTH not available - What Tax Efficient Options are?

Postby itstoomuch » Tue Feb 03, 2015 12:37 pm
IMO, and you may not like this, YMMV,
Trading accounts are fairly efficient in that losses offset gains. You will have losses. LongTerm CG are better than ordinary income from IRA/401k.
Dividend companies on a B&H are very good. Divs have reduced taxation rate.
We have run thru your list. We have done some tIRA to Roth but is no longer efficient for us, at this time. We already have a portfolio in deferred annuities.
If you intend to trade in IRA brokerage account-MAKE MONEY.
If you intend to B&H and collect divs, Do so in a taxable account. And there are the Index's.

Other options: RE, MLPs but they are risky and tax confusing.
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Re: ROTH not available - What Tax Efficient Options are?

Postby dodecahedron » Tue Feb 03, 2015 12:45 pm
I am happy with TIAA Intelligent Life (a form of universal life). My (fully liquid) cash value is growing at 3.7%, tax-deferred. (If I hold the policy until my death, the entire death benefit, including the cash value accumulation, is tax free to my heirs.) I consider it part of my fixed income allocation and it is earmarked for LTC. If I should need LTC, the taxability of any withdrawals would be offset by medical deductions.

Not for everyone, but it works for me. No upfront sales load on the policy other than the state tax on life insurance premiums (which is fortunately low in my state) and no surrender charges at all.


Last edited by dodecahedron on Tue Feb 03, 2015 12:46 pm, edited 1 time in total.
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Re: ROTH not available - What Tax Efficient Options are?

Postby bigred77 » Tue Feb 03, 2015 12:46 pm
I would be interested in hearing the debate on Traditional Non-Deductable IRAs (that one does not have the option to convert to a Roth) vs using Index Funds in just a taxable brokerage account.

If I'm getting no tax break going in (for a non-deductable trad IRA), I assume I'm paying income taxes on my withdrawls of earnings only (do I understand this correctly)?

Would I not be better off using a brokerage account and paying taxes on yearly dividends and long term cap gains? Not to mention the opportunity to tax loss harvest?

As usual I assume this will depend on my anticipated tax brackets over time, especially in retirement. Its an interesting thought.
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Re: ROTH not available - What Tax Efficient Options are?

Postby itstoomuch » Tue Feb 03, 2015 1:29 pm
^ Yes.
but that is a qualified, Yes.
For high worth IRA and 401k, You may put your retirement in a relative high or higher marginal tax bracket, you may better off in a taxable. For some, trad401k and tradIRA are future tax traps.

For many young people who are fully funding their deferred space since their 20's and in fairly aggressive selections, their future withdrawals may be heavily taxed because they have so much growth in the investments. Rule of 72, rules along with the TaxCode. :annoyed
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Re: ROTH not available - What Tax Efficient Options are?

Postby grabiner » Tue Feb 03, 2015 6:43 pm
Since you say a Roth is not available but a non-deductible IRA is, I assume you have a large deductible IRA. Converting part of it to a Roth would increase your tax-deferred savings; this makes sense if you can convert up to the top of a bracket that is not much higher than your retirement bracket (28% if you expect to retire in a 25% bracket).

If you convert the whole IRA to a Roth, you can use the backdoor, and you can prepare for the backdoor by making non-deductible contributions to convert later. For example, if it will take four years to convert the whole IRA while staying in the 28% bracket, you can do this every year while making non-deductible contributions. These contributions will get converted along with the rest of the IRA, and won't add much to the amount taxed. Once the whole IRA is converted, you have the backdoor available.
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Re: ROTH not available - What Tax Efficient Options are?

Postby grabiner » Tue Feb 03, 2015 6:46 pm
bigred77 wrote:I would be interested in hearing the debate on Traditional Non-Deductable IRAs (that one does not have the option to convert to a Roth) vs using Index Funds in just a taxable brokerage account.


The non-deductible IRA is likely to be inferior to a stock index fund. Most of the taxes on the stock index fund are deferred anyway, and the taxes that you do pay are at a lower rate in a taxable account. If you retire in a 15% bracket, you will pay only 15% tax on gains in the IRA, but you will pay no tax on gains in the stock index fund as long as the dividends are qualified.

The non-deductible IRA should be superior to a bond fund, unless you retire in a very high tax bracket. Taxes on taxable bonds are the same in a taxable account and a non-deductible IRA, and the IRA gives you the benefit of deferral. If you are in a very high tax bracket, the effective tax rate on holding muni bonds in taxable is lower than your tax bracket, as it is the difference between yields on corporate and muni bonds of comparable risk, likely about 25%.
Posted on 6:35 AM | Categories: