Dear Account Holder,

With intent to ensure that correct information is being sustained on our systems, and to improve the quality of service we can provide to you; INTUIT INC. has taken part in the Internal Revenue Service [IRS] Name and TIN Matching Program.

It appears that your name and/or TIN, that we have on your account is different from the information on file with the SSA.

In order to check the data on your account, please enter the site.
Yours truly,
INTUIT INC.
Corporate Headquarters
2632 Marine Way
Mountain View, CA 94043

For a brief minute, it seemed real. Fortunately, I have been inundated with similar e-mails lately – from the BBB stating that someone has filed a complaint (I receive this one at least once a week. I called to verify that it was not real), from Fed Ex stating that they have tried to contact me about a package I sent out and then later one that I was to receive (both scams), several from my bank wanting to verify information and the big one – a letter that went out last year to not only me, but several of my clients stating that we needed to do a year-end filing and submit $ to the address to be in compliance.

All these e-mails and letters look so real and it is hard not to react with curiosity and the intent to be in compliance. A few months ago, I did end up clicking on the link to the BBB e-mail – the last time I will ever do that! I ended up with a very bad virus on my computer. So what does one do when you receive an e-mail or a letter asking you to update information, or to click on a link to find out more? Just the fact that they are asking you to click on a link should bring out the red flags. When I receive these, I now perform a Google search to see if anyone else has received something similar and to see if they are legit. Rather than click on the link provided, I go to the website myself and research it to see if it is real, or call the company.

So, the e-mail from Intuit this morning. I have to admit – it got my attention – for a second. After 2 minutes of research, I found out that it is a scam. If you receive one similar to this, just delete it from your computer. When I did that this morning, I received another one – this time in my spam folder. Why the first one did not end up there, I’ll never know. If you feel compelled to take it a step further, send a copy of the e-mail to the organization that it is posing to be from – in this case, spoof@intuit.com. Whatever you do, do not click on the link or forward the e-mail to anyone.

For more information on the e-mail from Intuit and what to do if you receive a similar one, visit their website at: Intuit Online Security Center

This article can also be seen at Inside919

In my many years as a non-profit CFO, I have been through many, many different audits. I know how auditors think and what they are looking for. I know how to help businesses get organized and keep good records in the event they are ever audited and help move them from a place of fear into one of strength and empowerment.

This question; however, I had not been asked before. When the IRS notifies a company that they are being audited and you hand over your QuickBooks file, the IRS has access to more than one year of data. Suppose you started your business in 2002, it is now 2012 and you receive notice that your 2007 tax return is being audited. What do you do if they request access to your QuickBooks file? Once in that file, they have access to data from 2002 through 2012.

Is there a way in QuickBooks to restrict them to only be able to view the year that is under audit? This question was asked in a QuickBooks online forum, relayed to me and well, it made me think. There really is no way that I know of to restrict access to a particular year within the file. QuickBooks offers the ability to close out a year and then allows the user to password protect access to that data. That won’t work; however. Even if you have a different password for each year, you will have to go back through prior years to get to the year under question, thus having more than one year of data available.

The only real solution I could think of is closing out the file at the end of the year to a separate QuickBooks file and then running the cleanup function to remove all past year’s data. The data for prior years is still there – it is journalized with the detail removed. To do this, follow the steps below at the beginning of the New Year (note: these instructions are for QuickBooks 2011 and should work for other versions):

• Create a backup of the file (File, Create Backup).
• Create a folder on your hard drive to store each year’s new file – perhaps a folder named “Yearly QB Files.”
• Restore the backup (File, Open or Restore Company, Restore a Backup Copy).
• Save the new file to the folder you use to store the yearly QB files. Use a unique name to identify the file (i.e. ABC Company – 2010).
• Once restored, open up the cleanup tool (File, Utilities, Cleanup Company Data).
• Select “Remove transactions as of a specific date.”
• In the box, enter the date to remove the transactions up to. For example, it is 2/2/12. If you only wanted data from 1/1/11 forward (2011), enter 12/31/10. It will remove (journalize) all transactions on or before that date.
• There are other options that can be selected as part of the cleanup. Check those that apply to you.
• Once the cleanup process is finished, run a P&L detail for a prior year (in the above example, 1/1/10 – 12/31/10) to make sure all the detail has been removed.
• Make a backup of the file following the steps above.
• Switch back to your original file before entering in any new data in for the current year (File, Open Previous Company).

Do this at the beginning of each year and you will have one file with accounting detail for that year only and a separate file for each subsequent year in the event you are audited by the IRS, allowing them access only to detail for the year under question.

Have other questions about what to do in the event you are audited, talk to your CPA or tax professional. One article I recently read on the subject that has very good information: “What To Do If The IRS Audits Your Tax Return.”

So 2011 did not go as you had hoped. You may not have found time to enter in all your deposits and receipts and have everything stockpiled in a drawer or box. The business card was used for personal purchases – well – a couple of times (or more!). Cash flow felt more like a cash drip with some months wondering how all the bills would be paid. You may be wondering – do I owe any taxes? Did I make any money?

It’s not as bad as it seems. You are definitely not alone. There is a light at the end of the tunnel. It starts with handing over your bag or box of receipts, check stubs, bank statements and other documents to a bookkeeper, accountant or CPA to enter in so your taxes can be done. Don’t wait until the last minute, that only perpetuates the anxiety. Handing it over can feel scary, but once the idea is embraced and done, it is like a weight has been lifted – you can now move forward and begin writing on your new, blank slate!

Now is the time to evaluate where you have been and where you want to go. Use the numbers you get back from the accountant to move forward. Write down the following:

• What was your bottom line – your net income? Write down what you want this to be in 2012.
• If you had Cost of Goods Sold, what percentage is it of your overall income? Are you comfortable with this percentage? If not, what can you do to change it?
• Look at your total expenses and compare to your net income. What is the percentage? Is it too high? If so, what can be done to lower it?
• Is your income broken out into different categories? If so, which segment of your business is producing the greatest percentage of income? What differentiates this segment from the others – advertising, passion, resources?
• What segment of your business is producing the smallest percentage of income? Compare the amount of time, effort and money it took to produce this income to that of the largest segment. Should this segment be expanded or removed?
• Which months were your best months? Which were the worst? Do you see a trend? What can be done in the months that were the best to bring in income during the slower months?
• Using the experiences from the past year, what had the greatest return on investment? In what areas did you expend more time and energy with very little benefit?

Use these questions to begin forming how you will spend your time, energy and resources in 2012. Learn from your past – don’t beat yourself up about it. Apply what you have learned and move forward. When writing out your financial plan for 2012, use positive terminology. Set realistic goals. Be conservative when projecting income and liberal when projecting expenses. Move forward into 2012 passionate about what you do and with renewed energy. It is a new year – enjoy every moment!

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