Category: Cloud Solutions

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‘Tis the (Filing) Season – Time for W2s and 1099 Reporting

1099-santa-hatEvery year-end brings with it not just the holiday spirit, but also the underlying dread felt by small business owners – a creepy and back-of-your-neck hair-raising feeling associated with annual business tax reporting and filing. That old saying about “death and taxes” has a lot of validity to it; sometimes they feel like the same thing to a small business owner. And this is the filing season. Ho ho ho.

The reporting requirements for small businesses seem to be growing at a rapid pace, and business owners are struggling to find the information and tools that ease the adjustment to increasingly burdensome reporting and compliance. The IRS has implemented a number of measures to increase tax revenues and enforce compliance, including stricter 1099 reporting requirements. With information provided at both ends of the “transaction” it is easier to identify those discrepancies which trigger audits.   With this type of business intelligence, the IRS has developed a fairly strong weapon to combat non-compliance, so small business owners need to really pay attention (the IRS is).  If the feds are tooling up, then business owners should, too.

Just to add to the seasonal festivities, make sure you upgrade your accounting software in time to benefit from the right rules and forms. If you run a small business and keep most of your information on spreadsheets (still? really?), that’s OK because there are solutions available which draw the information from spreadsheets, eliminating the need to re-enter data. Seriously, though, you should consider using actual bookkeeping or accounting software.

It is also important to remember that payroll tax filing dates for W-2s and 1099 forms were changed for 2016 taxes, and these changes continue for 2017. The filing deadline for 2017 W-2s and 1099 forms (including Form 1099-MISC) is January 31, 2018, which is a month earlier than the pre-2017 filing date. Thankfully, the deadline for providing W-2 forms to employees and 1099-MISC forms to other workers for 2017 has not changed. This deadline is still January 31, 2018. 

Using a cloud-based service to file 1099s online should be something your business considers doing if it isn’t already. Because most services include form and feature updates, users don’t have to go looking for the right documents or worry that they are using an outdated form.  In an online or hosted solution, users benefit from updates without downloads and get stricter security around their data than would likely be present on their own PC.  As it relates to your accounting software, make sure it has the capabilities you need in this area and don’t settle for limited functionality.

Here are some features you’ll want to look for in your e-filing solution this year:

  • The ability to print and/or mail forms to recipients as well as e-filing forms directly with the IRS or SSA
  • Have Form 1096 or W-3 automatically calculated and transmitted electronically with the detail forms
  • Upload volumes of data with Excel templates or import from your accounting software (saves time and reduces input errors)
  • Store data securely and provide full access to filed forms for multiple years
  • Maintain payer and recipient records securely for use year after year.
  • Encrypt data upon submission and keep it encrypted throughout the entire process
  • Supports 1099 Corrections (should allow filing of corrected forms regardless of how the original form was filed)
  • Accountants, Bookkeepers and Tax Preparers should be able to set up multiple payers and file on behalf of many clients from a single account, even filing for all clients at once or via batch submission

Year-end tax filing, especially dealing with 1099s and W2s, is an arduous task for most small businesses and their professional service providers, yet it is one of those things that simply can’t be put off.  Where there is a single income tax return there could be literally hundreds of associated 1099s or W2s to file.  1099 filing in particular has become more of a focus as authorities crack down on contractor versus employer classifications and seek to develop easier identification of audit candidates (something every business owner wants to avoid).

The point of the discussion is that there are cloud-based tools which are highly useful, feature rich, and very affordable… and business owners and their accountants or bookkeepers would be wise to take a look rather than assuming that the general accounting software will do the trick this year and the next.  Remember that tax filing season is an annual event, and being able to rely on a consistently useful solution can make the season a bit merrier (or at least a little less stressful) for all.

jmbunnyfeetMake Sense?

J

Hi! I was looking for the Frangos.

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Business Data Storage in the Cloud – Accountex Report

The term “cloud” has been applied to all sorts of online or Internet-based application models, and there are a great many approaches to developing cloud-based services and solutions. What this translates to is a volume of options and possibilities for information storage, management, and access in the cloud.Understanding where information is stored, how it may be accessed, and how it might be transmitted to others becomes essential knowledge that business owners should have when they engage with any information technology (IT) solution or service. Yet the plethora of “simple, affordable, and instantly gratifying” services currently available on the web all but ensure that businesses will engage with one or more solutions that provide them with little or no information (much less control) over the placement and management of their data.

Source: Business Data Storage in the Cloud – Accountex Report

Read more about Compliance in the Cloud, and making sure your data doesn’t get lost or compromised, even when you use a hosting company…

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MSP, IT, Telecom, Channel: Convergence and the Cloud

Small and growing businesses have always relied upon various service providers and vendors to deliver the solutions required which support the business operation. Often viewed as the critical infrastructure of the business, phone and computer systems are among the first acquisitions a new business makes.  Phones and voice service, wired and wireless networks and all forms of communications infrastructure are part of IT and represent a large portion of the business information systems.

Small businesses used to have a phone guy they could call for phone stuff. The phone guy was a person or company who got phone lines installed, ran cabling for phones, installed phone systems and set up voicemail. The phone guy could help get cheaper long distance calling rates and train users on how to use the paging system and transfer calls.  The phone guy interacted mostly with the office manager or receptionist – the person in the office most likely to be “in charge” of the phone system, influencing these purchasing decisions greatly.

The computer guy, on the other hand, made sure the workstations and server were working, defragged hard drives, installed software and set up printers. The computer guy was the person or company that sold and supported the IT in the business, and often consulted with the business owner or line manager when it came to addressing information system requirements.

Telephony and networking is now clearly in the realm of IT, which changes how services are selected and purchasing is influenced. Computing and communications infrastructure, networking and mobile is all part of business IT. The separation of services – voice versus data – is gone.  The phone vendors and the IT suppliers are now the same company, providing the critical infrastructure, the platforms and the application services that businesses are buying. These service providers understand that the foundations for delivering voice and data services are the same; the skills of their techs and the tools they use have converged to the point where there is little separation of duties.

Cloud services and outsourced solution providers offering hosted PBX and virtual applications infrastructure have revealed to business owners that there is often little difference in what the phone guy and the computer guy can provide. Business owners want converged solutions: voice and data when and where they need it to support business operations. Just a little research reveals that these anytime/anywhere models are widely available and that the cloud is the key.

IT services are critical to the business, but the server doesn’t have to be under the front desk or in a back closet in order to function.  There is simply too much evidence in the market for these business owners to ignore;  shooting the server is now a viable option.

Every day more business owners are being inspired to [shoot their servers] seek out the services that will allow them to continue to benefit from innovations in technology while relieving them of the direct responsibilities of equipment purchasing, implementation, administration and lifecycle management.

Cloud services deliver this capability, and channel partners and Value Added Resellers should recognize their opportunity to get inspired as well, and to start offering cloud-based and hosted services to their customers and capture the “buying decision” opportunity that has [been] created.

Ready. Aim. Fire.

Source: Go Ahead and Shoot the Server: End of Microsoft Small Business Server Inspires Cloud Adoption with Small Businesses « Cooper Mann Consulting

Recognition of the convergence of voice and data services and channels hasn’t really hit home for a lot of resellers and channel partners, and this has rightfully positioned providers on both sides of the equation as viewing the others as direct competitors.  The phone guy thinks he is his customer’s “trusted advisor”, and that the loyal customer will certainly come to him if there is ever a need.  As well does the computer guy believe that he is the trusted advisor, having the ear of the business owner and wielding enough influence to ensure a continued revenue-earning relationship.

In truth, both the phone guy and the computer guy probably have earned their business customer’s trust and were the go-to people when there was a new business need. The problem is that the customer may no longer call one or the other of their “go-to” guys because the forward-thinking guys are offering one-stop service that delivers everything the business needs.  The lines between phone and computer stuff are not so clearly drawn any longer; it is all cloud IT and full service providers are winning the customer business.

Channel resellers, agents and MSPs are all telling their SMB/SME customers the same things, and at a base level they’re selling the same things, too.  Everyone is talking about lower up front investments and improved business productivity… and what they’re all selling is cloud and virtual. “Businesses need cloud in order to compete; move CapX to OpX; mobile is the new office” and “remote workers and devices need a secure quality network”.

Whether it relates to telephone systems with voicemail, automated attendants and a little intelligent voice response thrown in, or if the deal is for servers and workstations, software and network cabling, it is all business information technology and the trusted advisor is the guy who can provide it all. Convergence has clearly arrived.

Make Sense?

J

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Focusing on Transformation

Focusing on Transformation

In January of 2007, Network World published an article stating that “user satisfaction with software as a service (SaaS) is starting to slip, but customer interest in this method of outsourcing IT functions is continuing to grow“, and says that recent survey results clearly demonstrate SaaS being “a dominant force going forward”.  That was 10 years ago, yet the same message is being played out today as managed services and hosting continues to grow in popularity. IT outsourcing makes sense for thousands of businesses, whether the software is part of the package or not. Today, outsourcing IT is almost an imperative if the business is to keep up a competitive pace.

Users need and demand mobility and will get their anytime/anywhere access to applications and data however they can get it. Businesses require agility in their technology, which is difficult when significant investments in hardware and infrastructure must be earned out prior to any new investment. Making systems accessible from outside the firewall, securing them in a reasonable manner and keeping them up and running all the time so users can access at any time is not a job for part-time IT.  Keeping the systems on and available at all hours requires full-time IT management, and this is in part what fuels the popularity of outsourcing it all.

SaaS (Software-as-a-Service) goes a long way toward helping businesses manage their IT costs in that the systems are part of the service.  The hardware running the application, the storage of the data and the support accompanying the solution are all part of the package.  Unfortunately, the SaaS solutions is not generally the only thing in use by the business, so continued reliance upon PCs, desktop software and locally stored data causes IT management costs to persist.  One size does not fit all, even with online application services.  Although customizations and add-ons can help a single app become a broader solution framework, there is usually something left behind that ends up anchoring a process or function to the desktop, device or local network, and requiring IT management and administration to go along with.

Application hosting services compete somewhat with SaaS in that the systems and management of them is included in the hosting service subscription fee.  While the business user retains licensing of applications and the flexibility of using the software already embedded in the operation, the organization is enabled to focus on operational improvements and not on the underlying systems supporting them.  By reducing or eliminating the requirement to directly manage and maintain servers, complex networks and user working environments, businesses are able to focus their in-house technical energies towards innovation and improvement. The centralized nature of the system facilitates new collaborative capabilities while allowing the business to build on the knowledge and base of information already invested software and processes.

Outsourcing IT service provisioning and management is just a baby step towards improving the business agility and positioning the organization for growth. Real digital business transformation begins with a change in the business mindset: not simply a focus on operational processes and improvements, a new strategy should evolve where the enterprise is situated to interact with its market seamlessly, at any time and all the time.  Businesses that wish to compete at this level must consider whether or not purchasing and maintaining their IT infrastructure is where they wish to focus their energies or if they’d rather invest their technical talent towards market building and transformational objectives.

Make Sense?

J

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Should You Take Your Practice To The Cloud?

I’ve seen a lot of articles lately (and written more than a few myself) directed towards accounting professionals and “taking your practice online” or “taking your practice to the cloud”.  At this point, when a professional asks me the question “should I take my practice to the cloud”, my response generally comes in the form of two return questions.

The first is “what leads you to believe you have a choice?”

The second is “what makes you think you haven’t already?”

There are a few realities about doing business today that can’t be ignored and cloud computing is at the top of the list.  Professionals can recognize these realities and work with them or fight the changing tide and lose out to more relevant providers.

To address the question of choice, let’s consider the fact that many of today’s entrepreneurs and small business owners have been exposed to Internet services and online technologies for quite a long time.  Use of these services has become an ingrained element in daily life.  Not using online technologies seems “old school” to these folks and is often perceived to be due to some deficiency in the ability to understand or use new tools.  If professional service providers aren’t able to leverage online tools to provide the access, collaboration, and higher level of service which business owners demand, they won’t work with those business owners for very long.

In addressing the “what makes you think you aren’t already?” question, let’s consider the fact that almost all of the accounting software offered today has incorporated cloud-service or Internet-based functionality in some manner.  Even the tried and true desktop editions of QuickBooks financial software  have quite a lot of web service functionality designed in to the product.  Where credit card processing was once an offline (or telephonic) process, it’s now an instantaneous service delivered via the net.  Payroll?  Tax tables aren’t just downloaded to the software where you perform the processing and calculations.  Payroll is a service, delivered via Internet connectivity to Intuit’s payroll service bureaus (or ADP, Paychex, etc.).  Even banking is less traveling to the establishment and more Internet access and data exchange.   We don’t think twice about downloading transactions from the bank computers instead of working from the paper bank statement.

Internet/web/cloud service and functionality has become a pervasive element to almost every aspect of software and computerized business support systems, and it’s a pretty good bet that your firm is already using it. So, let’s not spend our time asking a silly question about whether or not it makes sense to “take the practice to the cloud”.  The obvious answer is yes.

Make Sense?

J

 

Original article: Should You Take Your Practice To The Cloud? You’re Still Asking?
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Cloud and Digital are Driving Change in Professional Practice

Accounting and Finance Professionals: Cloud and Digital are Driving Change in Professional Practice

Accountants and financial consultants working in public practice are experiencing a revolutionary change, evolving from documents and paper-based processes with after-the-fact reporting to real-time business management and providing services which support daily decision-making.  The underlying cause for this evolution in business accounting is the technology: cloud and collaborative computing models are enabling much closer and regular interaction between accounting professionals and the businesses they serve. Even more, technology is taking its proper place in automating once tedious activities, allowing professionals to focus on causes and results rather than on transactions.

What is the real impact this is having on the accounting profession?  It’s forcing a new focus and attention on change management within the practice, and is causing professionals to recognize the requirement for standardization of processes and development of controls which are the foundations for creating sustainability in a business.  The goal now is placing reliance on process rather than people, which establishes the basis for intelligent automation.  Standardization of processes does not require that the firm lose its personality.  Rather, the mission at hand is to imbue the organization with its unique flavor and approach and to use process automation to develop and support consistency in the functions performed.

While cloud computing models allow accounting and finance professionals to work closer with their business clients, it is important that the practice look at those client interactions and develop standards for processes supporting frequently performed functions.  These operations generally represent the activities within the firm which generate the highest levels of profitability due to the consistency in approach and repetition of tasks, and are the activities to apply intelligent automation to first.  Those activities or engagements which represent the “one-offs” are often the most costly for the firm to perform, and therefore may not be the most profitable of activities and are certainly the most challenging to support with any significant level of automation.  It is in this area where AI will find useful value in the practice, where a more informed answer than simple process automation is required.

The surprising finding when looking at many professional practices with more than one partner/professional involved is that these firms often fail to develop even the most basic of standard processes which apply throughout the firm.  Rather, each partner or professional has “their way” of handling things, which challenges the supporting personnel as they try to deal with multiple working methods. The result is a lack of consistency in the service delivery to the clientele and reduced productivity and profitability for the firm.

The thing that these firms are failing to recognize – the light bulb over their heads that just isn’t lighting up – is that cloud computing and collaborative working models aren’t designed just to enable and facilitate a closer working relationship with clients.  They’re also able to be applied inside the professional practice, enabling a more productive and efficient workflow which addresses the strengths and capabilities of the entire organization. And it doesn’t stop there.  Businesses are relying upon their accounting professionals to provide guidance and develop controls and standards to support the client transformation from paper-based to digital operations, and embracing the entire realm of data and interactions associating with the business. Digital transformation in a client business demands transformation in those firms who serve it.

As professionals learn to go deeper in client operations they would do well to look internally, too, exploring how increased attention to process automation and consideration for the firm’s own “digital transformation” might lead to great profitability through market differentiation and improved performance.

Make Sense?

J