Beware: IRS tax scam

By Scott Berger on March 14, 2012

The IRS will never initiate contact via email. If you receive an email claiming to be from the IRS, it is a SCAM!

Below is a screenshot of one of the scam emails being sent.

Sample email scam

If you have any concerns or questions, feel free to contact your Kaufman, Rossin professional.

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Scott F. Berger is a tax and accounting services principal at Kaufman, Rossin’s Boca Raton office. Kaufman, Rossin & Co. is one of the top CPA firms in the country. He can be reached at sberger@kaufmanrossin.com.

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QuickBooks Tip: Use Undeposited Funds

By Terri Richards on March 14, 2012

Terri RichardsWhat is Undeposited Funds?
Undeposited Funds is used to track customer payments. It groups payments together so you can match the bank deposits shown on your statement.

How do you use Undeposited Funds?
First, you must set up Undeposited Funds in QuickBooks. Go to Edit > Preferences > Payments > Company Preferences Tab > and check the box that says “Use Undeposited Funds as default deposit to account.”

When receiving a payment go to Customer > Receive Payment. The payment will be recorded in the Undeposited Funds account.

When making a deposit go to Banking > Make Deposits. A pop-up box will appear that includes any payments that have been posted to Undeposited Funds. Check each of the payments that will be included in the deposit. Select OK. If you have any additional payments to add to the Deposit, add them until the total deposit in QuickBooks equals the total you are depositing.

What causes incorrect balances in Undeposited Funds?

  1. Recording missing deposits directly to the bank account because you are unaware they are already recorded in Undeposited Funds.
    What can I do to avoid this?     Make sure you know whether or not Undeposited Funds is set up as the default deposit to the account. We recommend you use it. However, if you decide the account doesn’t serve a purpose you should change where your payments are deposited.
  2. Not using the pop-up list of Undeposited Funds when making a deposit.
    What can I do to avoid this?     Make sure to review the pop-up box carefully when making deposits. Before recording deposits directly into the bank account, review Undeposited Funds for any missing amounts.

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Terri Richards is an accounting services manager at Kaufman, Rossin’s Boca Raton office, and a QuickBooks ProAdvisor. Kaufman, Rossin & Co., one of the top CPA firms in the country, offers QuickBooks training and consulting services. She can be reached at trichards@kaufmanrossin.com.

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How to choose the right Service Organization Controls report

By Jorge Rey, CISA, CISM, CGEIT on March 8, 2012

If you provide outsourced services to your clients, an excellent tool to create trust and confidence is the service organization controls (SOC) reports. These reports can boost growth, win and retain clients and open new markets. 

But which one is right for your organization?

 The SOC reports replace and expand the previous standard, SAS 70.  We have seen a seamless transition from the old standard to its replacement, the SOC 1 report (or SSAE 16). This report examines internal controls at a service organization that impact a user entity’s controls over financial reporting.

However, we are still seeing some confusion with the new reports (SOC 2 and SOC 3). The new reports are designed to examine operational issues, such as security, availability, integrity, confidentiality or privacy. And, since both reports examine the same areas, many of our clients are asking us why they should get a SOC 2, SOC 3 or both.

To assess what report is right for you, ask:

  • Do your customers have the need for/ability to understand the details of processing and controls at a service organization, the tests performed by the service auditor and results of those tests?  If the answer is yes, a SOC 2 report will be right for you.
  • Do you plan to use the report to market your services?  Do you need to make the report readily available?  Does a certification seal add value? If the answer is yes, a SOC 3 report will be the right choice and not a SOC 2.

 Should you get both?

From the auditors’ perspective, the work we do to issue the SOC 2 and SOC 3 report is the same.  It’s the actual report and opinion that are different.  We are recommending our clients get a SOC 2 report and, since the work has been done, also issue a SOC 3 report. This way you will get the best of both worlds.

For more information on SOC reports, please refer our white paper New Tools Help Service Organizations Win Clients’ Trust.

Jorge Rey is Director of Information Security for Kaufman, Rossin & Co., one of the top CPA firms in the country. He can be reached at jrey@kaufmanrossin.com.

ALERT: You may have paid too much sales tax!

By Dan Wagner on March 7, 2012

Sales and use tax rules are complex and can be confusing.  It’s surprising how often entrepreneurs pay more taxes than they’re required.  Many never even know they overpaid thousands!

If your business is in the manufacturing, hospitality, or healthcare industry then you may qualify!

Our experts find overpayments and recover them.

Our State & Local Tax professionals will analyze your payments and see whether you have a refund due.  We look at your fixed asset and consumable purchases over the past three years, and often find vendor overcharges of sales tax, or sales/use tax paid on nontaxable transactions. Then we file a refund claim with the State to recover the overpaid tax, or we prepare a report so you can recover the overpayments by taking credits against future sales tax payments.

It works.  We’ve found significant refunds for many clients.

For example:

  • We recovered approximately $130,000 in overcharged sales tax for a South Florida resort hotel.
  • We recovered approximately $250,000 in overpaid sales/use tax for a Central Florida manufacturing company.

Here’s the best part: it costs nothing unless we succeed.

The work is performed on a contingency fee basis. There is no cost to you unless we find an overpayment and get your money back.  Our fee is paid out of the cash we recover.  There is zero impact on your budget.

Clients find our experience invaluable.

This time-consuming work requires a significant base of knowledge about the rules and how they may be applied.  It takes detail orientation and patient attention.  Kaufman, Rossin has built a team of professionals whose technical skills and abilities in this area are unmatched.

  • We have 15 years of FL Dept. of Revenue (“FDOR”) experience
  • We have extensive contacts within the FDOR.
  • We started doing this at the Big Four, but chose to bring this real value to entrepreneurs at Kaufman, Rossin a dozen years ago.

Want to know if you overpaid – and get it back?

For additional information on our State & Local Tax (SALT) Practice, please contact:

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Dan Wagner is an associate tax principal in Kaufman, Rossin’s SALT practice.  Kaufman, Rossin & Co. is one of the top CPA firms in the country. He can be reached at dwagner@kaufmanrossin.com.

#ILoveAccountants

By Aubrey Swanson on March 6, 2012

Why Do You Love Accountants?

There are endless possibilities as to why you may love accountants. They save you money, they help you avoid an audit, they help you make sense of that shoe box full of receipts… Whatever the reason may be, we want to know (in 140 characters or less)!

In just two days, I will be traveling to Austin, Texas for my second annual South by Southwest (SXSW) Interactive conference – the largest social media, tech, web, and start-up event in the world. Besides engaging in six speaker sessions from 9:30am till 6:00pm for five days straight, meeting hundreds of new people, and attending countless events, I’ll be encouraging complete strangers to tweet why they love accountants with the #ILoveAccountants hashtag!

Why?

1. SXSW is a social media hub. So why not conduct a fun Twitter campaign?

2. Although SXSW attracts the most social media-friendly people in the world, it’s still a rarity to see professional services, especially accountants, in the mix of it all. We want to make a CPA presence in Austin!

3. I’ll be wearing a different, brightly-colored shirt each day with the caption, “ASK ME WHY,” on the front and “#ILoveAccountants” on the back – it’s bound to be a conversation starter!

4. We really want to know your answer.

So why do you love accountants? Tweet us at @KaufmanRossin with #ILoveAccountants!

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Aubrey Swanson is the social media coordinator at Kaufman, Rossin’s Miami office. Kaufman, Rossin & Co.is one of the top CPA firms in the country. She can be reached at aswanson@kaufmanrossin.com. Connect with Aubrey on Linkedin. Follow Aubrey on Twitter.

Why Should You Attend SXSW?

By Aubrey Swanson on March 2, 2012

It’s that time of the year again… Time for 30,000 web, tech, and marketing enthusiasts to gather together for five days of non-stop panels, events, networking, and learning.  I’m talking about South by Southwest (SXSW) Interactive Conference – the “it” conference among social media, tech, start-up, and innovative companies around the world!  The opportunities at SXSW are endless, which is why it’s incredibly valuable for Kaufman, Rossin & Co. and me to attend.

SXSW is the world’s technology hub.  All the latest and greatest in tech, innovation, and social media are there offering an invaluable, one-of-a-kind experience.  My world of social media evolves and changes every single day, and SXSW exposes me to the forefront of social media and technology – preparing me for what’s to come. The sessions held at SXSW help confirm my current strategies and ideas, teach and prepare me for what the future holds, and inspire me with creative new ideas to implement once I return to Miami.

As for the SXSW crowd – imagine thousands of the most brilliant, creative, inspiring minds in one city.  Authors, professional speakers, CEOs, representatives from Fortune 500 companies to the innovative start-ups – you can’t beat it! Not to mention the networking opportunities at SXSW are priceless.  Interactive attendees come together for the love of technology. You never know who you’ll meet, what you’ll learn from them, and what you could offer them.

Still not convinced?  Hear first-hand from last year’s SXSW speakers, attendees, and exhibitors.

If you’re planning on attending SXSW this year, be sure to read Christine de la Huerta‘s, VP of rbb Public Relations‘ Digital Park, article in The Miami Herald for tips on making the most of your SXSW experience.

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Aubrey Swanson is the social media coordinator at Kaufman, Rossin’s Miami office.  Kaufman, Rossin & Co.is one of the top CPA firms in the country.  She can be reached at aswanson@kaufmanrossin.com.  Connect with Aubrey on Linkedin.  Follow Aubrey on Twitter.

How to Survive Tax Season

By Aubrey Swanson on February 29, 2012

Tax season is in full swing, and for accountants, that means long work days, extra workloads, and heightened stress between January and April 17.  So how do CPAs cope with busy season? We asked our professionals at Kaufman, Rossin to shed some light on how they relax, revive, de-stress, and maintain productivity…

And we got a lot of fun, interesting, and even some quirky responses!

So tell us, how do you survive tax season? Leave a comment below, or tell us on Facebook, YouTube, or Twitter with the #SurvivingTaxSeason hash tag!

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Aubrey Swanson is the social media coordinator at Kaufman, Rossin’s Miami office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  She can be reached at aswanson@kaufmanrossin.com.  Connect with Aubrey on Linkedin.  Follow Aubrey on Twitter.

QuickBooks Tip: Set a closing date password – you won’t regret it!

By Lori Bucci on February 14, 2012

When can you set a closing date?
You can set a closing date on a daily, monthly, quarterly or yearly basis.

Why do you need a closing date?

  • To restrict access to final numbers once a period is closed.
  • To prevent staff from adding, editing or deleting transactions after the books are closed.
  • To prevent changes to transactions after the information is sent to your accountant.
  • To help prevent fraud.

What does a closing date do?

  • Warns you when a transaction on or before the closing date is being changed.
  • Tracks all changes.
  • Prints a closing date exception report.

How do you set a closing date in QuickBooks?

  • Login as the Admin.
  • Click Company, Set Closing Date to open the Accounting, Company Preferences dialog.
  • Click the Set Date/Password button. The Set Closing Date and Password dialog displays.
  • Enter a closing date and optional password. You might want to discuss this date with your accountant first.
  • Click OK to accept the closing date and optional password.

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Lori Bucci is an accounting services manager at Kaufman, Rossin’s Miami office, and a QuickBooks ProAdvisor. Kaufman, Rossin & Co., one of the top CPA firms in the country, offers QuickBooks training and consulting services. She can be reached at lbucci@kaufmanrossin.com.

Hackers Target South Florida Businesses

By Jorge Rey, CISA, CISM, CGEIT on February 3, 2012

Are you prepared for the financial loss and business disruption that would occur if a hacker grabbed $50,000 from your bank account?   Cyber criminals are targeting the bank accounts of small and medium sized businesses in South Florida and worldwide.  And in many cases, the banks aren’t liable for your loss.

How can hackers get into my account?

To obtain access to financial accounts, cyber criminals target your employees – often senior executives or accounting personnel. They steal their personal information and log-in credentials for your online bank account using one of many methods, including mimicking your bank’s website, or using malware and viruses to compromise your business’ system. Then the criminal transfers funds by ACH or wire transfer to the bank accounts of associates within the U.S. or directly overseas with wires. A business’ systems may be compromised by:

  • An infected document attached to an email
  • Employees visiting legitimate websites – especially social networking sites – and clicking on the infected documents, videos, or photos posted there
  • An employee using a flash drive that was infected by another computer
  • A link within an email that connects to an infected website.  

Think your employees don’t click on suspicious links?

If you’re  thinking your employees are too smart to click on a link that says “There is a problem with your banking account, please reconfirm your ID and password,”  you may be right. 

But what about one from the Better Business Bureau that says “A complaint has been filed against you,” one from UPS that says “There’s a problem with your shipment,” or one from the court system that says “You have been served a subpoena?”

But isn’t my bank responsible for the loss?

Actually, when you set up your online business account, you probably signed papers accepting responsibility for losses like these.  In some cases the bank will work with you, in the interests of good customer service.  But don’t count on it.

Most companies I visit think their anti-virus software is working.

Many times they are wrong!  To enhance the security of your computer and networks, you should:

  • Install and maintain real-time anti-virus and anti-spyware desktop firewall and malware detection and removal software. Use these tools regularly to scan your computer.  Allow for automatic updates and scheduled scans. 
  • Install routers and firewalls to prevent unauthorized access to your computer or network
  • Perform IT Security evaluations periodically.

You can also enhance the security of your corporate banking processes and protocols by:

  • Dedicating one highly secured computer exclusively to online banking and cash management activity.
  • Not performing online banking and cash management activities in Wi-Fi hotspots, including airports or Internet cafes.
  • Initiating wire and ACH files using dual control — for example, file creation by one employee and file approval and release by another employee on a different computer with a different user id.
  • Reviewing accounts regularly.  This enhances the ability to quickly detect unauthorized activity and allows the business and the financial institution to take action to prevent or minimize losses.
  • Discussing the options offered by your financial institution to help detect or prevent unauthorized payments or changes to your accounts.

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Jorge Rey is Director of Information Security for Kaufman, Rossin & Co., one of the top CPA firms in the country. He can be reached at jrey@kaufmanrossin.com.

What’s New in QuickBooks 2012?

By Lisa Grossman on January 25, 2012

The program enhancements for QuickBooks 2012 can be divided into two areas:

  1. Enhancements for the user
  2. Enhancements for their accountants

Enhancements for the user are designed to make day-to-day accounting easier and provide better information about your business. We have listed many of the User Enhancements that apply to most versions of QuickBooks below.

  • Refresh Excel Data – provides user better integration with Microsoft Excel
  • Contributed Reports – allows user to share report templates with other QuickBooks users
  • Lead Center – allows user to manage sales prospects within QuickBooks and convert them easily to customers
  • Calendar View – allows user to view a calendar layout of a company’s important transactions (invoices, billing, reminders)
  • Global To Do’s – allows user more access to and flexibility with their To-Do lists
  • Document Center – users can scan and store attached documents
  • Memorized Transactions – improved to enable user to select transactions before entry
  • Batch Timesheets – allows user to enter the same timesheet information for multiple employees
  • Batch Invoicing for Time and Expenses – allows users to invoice several customers for time and expenses at one time
  • One Click Transactions – allows users to create a payment or credit memo from the contents of an invoice in one step; also can now pay a bill in one step
  • Improved Shipping Manager – allows user to integrate with USPS
  • Company File Search – allows users expanded search features
  • Integrated Help – provides users enhanced help features
  • Improved Condense Data – improves the clean up data/condense data feature
  • Easy Setup – provides users with an express start up for new QuickBooks files

If you have any questions or need assistance with QuickBooks, please contact Lisa K. Grossman or any of our QuickBooks ProAdvisors.

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Lisa K. Grossman is an associate principal at Kaufman, Rossin & Co., and a leader in the Firm’s QuickBooks consulting practice. Lisa is a Certified Public Accountant in the state of Florida and a QuickBooks ProAdvisor. Kaufman, Rossin & Co. is one of the top CPA firms in the country. She can be reached a lgrossman@kaufmanrossin.com.