It is by no means a perfect small business accounting solution, as I have a lengthy list of suggestions & complaints for Intuit, but it is the best solution you are going to find for the price.
In recent years, some low-cost, online accounting solutions have emerged to challenge Quick Books for the sole proprietorship market by offering more simplistic accounting and integration with other online services like Ebay, Etsy, and Pay Pal.
The OR-PTE-PY is new this year, and the worksheet in Section B can be very confusing the first time through, but the most important thing is the the worksheet already multiplies the tax amounts by the Oregon percentage and the Oregon non-passive percentage, so by the time you get to line 19a, it is already pro-rated.
For this very reason, ODR lists specific instructions below line 19a .
The reconciliation report is important verification that your accounting records are complete and not missing any transactions, and most CPAs and tax preparers will want a copy when preparing your return, as the IRS’s most effective audit technique is their bank account analysis.
Reconciliations also help identify old outstanding checks and duplications and errors that need to be voided.
It is still the best way to verify that the data in your accounting system matches the bank and that there are no duplications, stale checks, or other input and/or import errors, and your accounting solution should make the process a quick and painless.
To help you avoid these inferior accounting solutions, below are the minimum requirements you should look for before committing to a specific solution.
Most CPAs and tax preparers require a balance sheet to prepare a tax return – even for sole proprietorships and small LLCS – so do not use a service that does not offer a balance sheet report.
Bank & Credit Card Account Reconciliation I love technology and the fact that you can save hours of input work by importing transactions from banks right into accounting solutions.
Even if you have a small sole proprietorship, you likely have a number of these accounts, as most business owners use credit cards and Pay Pal, but even if you only have one bank account and no debt, you still need to be able to generate a balance sheet so that you can see how much net profit you have withdrawn from the business.
After all, one of the most difficult issues for a small business owner is determining how much cash needs to be left in the company and how much can be safely withdrawn.