A few macro and related stories today…
Wow! One of the more complicated conversions I have done for a client came my way the other day. Not only was my client switching from Peachtree to Quickbooks, not only were they switching from PC to Mac, but they also had their Peachtree files located on a remote server out-of-state.
Intuit offers a free conversion tool that can easily be downloaded onto your pc to convert a Peachtree file into a Quickbooks file. The client had already purchased Quickbooks for MAC. (You must have Quickbooks for MAC 2007 or newer) In addition he had to purchase the Quickbooks PC license and installed it on the Windows 7 platform that was already installed on his MAC.
The big complication in this particular conversion was that the Peachtree and Quickbooks software as well as the conversion tool have to be installed on the same computer and that computer has to be a local computer. Because his Peachtree files were located out of state on another computer we had to send the file to Intuit tech-support for conversion. The conversion was completed quickly and we had our new file back in less then 48 business hours. And, because my client went through a ProAdvisor his conversion was free.
We restored this converted file to Quickbooks using the PC version of the software. The next step was to open this company file and use the feature in Quickbooks to prepare the file for a MAC conversion. (This is found under the “File” drop down menu on the top menu bar, and the “Utilties” feature. Select “Copy company file for Quickbooks MAC”. Save the prepared file to your Desktop if your are already working on your MAC or to a flash drive if you are moving it to another computer.) Once complete we were able to open the company file in the MAC version and the training commenced.
One thing to NOTE if you are considering using Quickbooks for MAC and you have a Proadvisor or Accountant that regularly accesses you Quickbooks file. The remote access feature built-in to Quickbooks does not work with the MAC platform. Therefore, you can either allow access through Remote Desktop Connection, or run your Quickbooks on the Windows 7 parallel platform with your MAC.
The client I worked with in this incident actually used the PC version to create a file for his personal bookkeeping. He wanted to have a handle on his personal spending and was able to download several years worth of transactions from his bank. This gave him the opportunity to become more familiar with Quickbooks software before tackling his multiple company files in the Mac version. I have a feeling he may end up sticking with the PC version now that he has experience with all of the extra features, and consequently the increased ease, that the PC version provides.
With the outside services provided intuit this project took several visits. Now that everything is complete this client should be making great progress with minimal follow-ups.
Part 2 – Capital city unemployment
Part 3 – Regional unemployment
And it is rather calamitous news for many resources regions.
The lower Aussie dollar might help the outlook over the medium term, but the long term trend is nevertheless down, down, deeper and down.
I wrote a piece earlier today in my Yahoo Finance Contributor’s column about Hershey’s China challenges. As I noted in the article fascinatingly the famous chocolate company made a sharply differentiated comment about the progression of sales and profits in America compared to China:
‘The company’s North America confectionery business is on track to deliver on its 2015 financial objectives…In China, Hershey chocolate growth was below expectations in April and May. As a result, the company has tempered its expectations for organic net sales and operating income growth. Macroeconomic challenges and trends are affecting consumer shopping behavior resulting in continued softness within the China modern trade, particularly the tier one hypermarkets where the company generates the majority of its chocolate sales’
Which makes me think: what price Hershey’s then?
Looking at the company’s statement published earlier today and, additionally, a productivity initiative release (here) which detailed personnel change and a US$100m+ charge, the company’s earnings capability is going to be impacted. As Hershey’s management note:
Many of my clients download their bank transactions directly from their banks online system. Some, however, only do this once a month when they are ready to reconcile all of their accounts. There is one very strong reason I recommend completing the bank download feature in Quickbooks at least once a week.
I have experienced this personally, and I have seen it happen to my clients.
You could be in for a very rude awaking as you trod along during the month keeping track of your account register as you enter each transaction that you complete. Then one day you get a phone call from the bank saying you are overdrawn. Or, perhaps you are out in the field and attempt to use your credit or debit card only to have the charge declined.
Downloading regularly can bring fraudulent charges to your attention immediately and allow you to dispute those charges before overdraft and/or over limit charges start to pile up on your account. It’s much easier to get credit for these charges with your bank as soon as the fraud is detected then it might be a few weeks or even months later.
You may think that you have nothing to worry about. You take every possible precaution you can think of to prevent identity theft. You shred every paper, pay monthly fees to a credit monitoring service, and more. But a stolen debit card number can wipe out your cash on hand in one day!
Consider keeping your personal records on Quickbooks (in a separate “company file”) so that you can use the bank download feature for these accounts as well. Being diligent, and monitoring for yourself is your best defense.
The total value of loans in the month broke $5 billion for the second time in May at $5,017 million.
The first time this barrier was broken was in March of this year.
So we many not have seen the last of the interest rate cuts just yet.
Yes it is that time of the month again for all fund management industry watchers as the BoA-Merrill Lynch Fund Manager survey hits town. It is fair enough that putting your hands on a copy is harder than ever but with all due reference to the content providers here are a few of the graphics that I have managed to get hold of…plus a few thoughts of my own surrounding them.
Well when Mr Draghi in the most recent ECB interest rate decision press conference tells you to anticipate volatility…that is what you logically do. Funny how yesterday I sold my long EU volatility positions at a pleasant profit… Quite amazing to see how little H2 2008 volatility protection there was…
The anti US dollar love is high and after touching 100 the DXY (trade weighted US dollar) is now trading at a more reasonable 95 and change. For what it is worth I think euro/US dollar is about right here. If you are looking for crowded trades then high yield or the Chinese stock market are probably more sensible places to look.
Fair enough…I guess my preferred scenario of some some sort of Greek reform/restructuring bundle has element of the first two bars
Again personally thinking I don’t think the Federal Reserve should raise rates BUT I guess the bigger insight is that we are a long distance from normalisation.
Frankly volatility is probably now more apparent if the Fed don’t raise rates in September and people ask why (if pushed my personal preferred scenario):
Following on from the above, the ‘behind-the-curve’ option is simply laughable. Geopolitics is, of course, an easy catch-all (but quite sensible). Striking new entry from ‘Eurozone breakdown’! The Eurozone being ranked ahead of China as a source of volatility is certainly correct.
So what do you then? Well you build up cash…
CoreLogic-RP Data‘s excellent research also suggests that both Hornsby and the Hills District are likely to see more units constructed than the underlying demand for them.
You have two options depending on how you wish to have the information appear on your balance sheet.
The simplest way is to enter the payment in the Customer menu under “Receive Payments”. If there are invoices already entered for this customer and you do not want to apply this prepayment to those invoices, just un-check the invoice that Quickbooks auto-applied the payment to.
After you uncheck this option the Overpayment note at the bottom of the screen will disappear. Click Save & Close and an option box will pop up on the screen. Since this is a prepayment will want to the select OK which will save the payment to the Customers account as an un-applied payment.
Entering the pre-payment using this method will have the effect of reducing the accounts receivable balance in the Assets portion of your balance sheet.
If you need to see which customers have un-applied payments posted to their accounts you can run the A/R Aging Detail report under the Customers & Receivables section of the Reports menu. Any un-applied payments will appear as credits (minus) on the report.
In addition, by using this method you can apply the prepayment to any Job associated with this customer by double clicking on the payment in the Customer Center and selecting the invoice(s) to apply it to. All Jobs for a Customer will appear for a payment posted just to the Customer and not to a specific job.
If you wish to post your Customer’s prepayments to a liability account that will appear in the liabilities sections of your Balance Sheet you can do this using a Sales Receipt to record this transaction.
Step one is to create an account on your chart of accounts for the liability such as Customer Deposits. Use the Other Current Liability account type when setting this up. Next you will need to create an Item in the Item list to direct to pre-payment to this liability.
From the Item button on the Item list select New. Choose the “Other Charge” Item type.
Enter the appropriate name and description for the item, choose the non-taxable tax code and select the account the you created in the chart of accounts for this liability.
Create a sales receipt for the customer using the Sales Receipt form. Use the Item that you created in the item list and enter the amount of the payment.
In this way you can record the payment number the payment method, and because you are using a Sales Receipt and not an invoice the funds appear as a balance in the liabilities section of the balance sheet rather than reducing the Accounts Receivable balance on the balance sheet. Once this Sales Receipt is created you can see the transaction on various Customer reports. However, it will not appear in any Accounts Receivable reports.
When you are ready to apply this prepayment to a customer invoice you will need to do a journal entry to move this amount into accounts receivable. Simply debit the Customer Deposits account and credit Accounts Receivable. Include this Customer name in the Customer/Job column of the journal entry. If you use Jobs under your Customer register, the journal entry to credit accounts receivable must be attached to the “Job” (in the Customer/Job column) that is being invoiced.
To apply this prepayment to an invoice, open the invoice by double clicking on it in the Customer Center and click the Apply Credits button. Once the available credit has been selected choose Done.