A.Quarles CPA, PLLC – Accounting & Tax Tips Blog

3 Ways to Receive Payments in QuickBooks Online

September 16, 2025 by admin

Subscription Billing on Laptop, Automate Recurring Payments for Business Success, Vector Flat Illustration Got customer payments coming in? QuickBooks Online has multiple ways to accept and record them.

One of the biggest challenges small businesses face is managing a steady cash flow. Keeping income ahead of expenses is a constant balancing act. QuickBooks Online can help. With easy-to-use forms and a convenient mobile app, it helps you track and deposit incoming payments with ease.

Do you ever receive instant payments for certain products or services? Ever need to record a sale on the go—both for your records and your customer’s? Or maybe you send out invoices and want to ensure payments are accurately logged once they come in. QuickBooks Online has you covered in all these scenarios. Plus, it offers automation tools that speed up the payment process—so you can get paid faster and focus on growing your business.

Let Customers Pay Online

If your business sends invoices for products or services, QuickBooks Online makes it easy to record customer payments. While you can manually enter payments, there’s a faster, more efficient option: QuickBooks Payments. This built-in merchant service lets you accept credit card and bank payments electronically—helping you get paid quicker and streamlining your cash flow.

Once QuickBooks Payments is set up in QuickBooks Online (contact us if you need help), your invoices will include integrated payment options for credit cards and electronic checks. Each invoice will feature a payment button, allowing customers to easily enter their payment information. You’ll be able to track when an invoice is viewed, paid, and deposited. Simply open your list of invoices and click on one to view its details. A timeline panel will slide out from the right side, showing the invoice’s history and status. Plus, you can opt to receive notifications for invoice activity.

If you prefer to record payments manually, find the unpaid invoice in your list and click the Receive Payment link at the end of the row. This opens the Receive Payment screen, where you can fill in any missing details and save. You can also find the same link on the invoice screen itself or from the Invoices page (SalesInvoices).

You can receive payments manually in QuickBooks Online from an invoice itself or from the Invoices page.

There’s no cost for setting up a pay-as-you-go account in QuickBooks Payments. There are only per-transaction fees:

● ACH bank payments are 1%.

● It’s 3.5% if the payment comes in through an invoice (Apple Pay, Google Pay, credit cards, etc.) or if the payments are keyed in.

● If you swipe a card, you’ll pay 2.4%

There’s also a $0.30 fee per transaction. Transaction fees are slightly lower if you pay $20 per month. Payments that come in before 3 p.m. PT should be in your account the next business day.

Accepting Payments Through GoPayment

To take payments while you’re on the road, you’ll need a free mobile card reader from Intuit that connects to your smartphone. It supports tap, chip, and digital wallet payments. You can also manually enter card details (see above rates). To process transactions, you’ll need to download the GoPayment app, available for iOS and Android. The app lets you add product names, prices, and images to make checkout faster and easier. Multiple layers of security are in place to help protect your data during mobile transactions.

Receiving Instant Payments

Sometimes, you’ll receive payment right after delivering a product or service. In these cases, QuickBooks Online allows you to create and provide a sales receipt on the spot. Just click +New in the upper left corner, then select Sales Receipt in the Customers section. The form that opens will look similar to an invoice or estimate. Choose the customer in the upper left corner, and fill out the remaining details as you normally would. When you’re finished, click Save and send to email the receipt. You’ll have the option to preview it before sending and to print it.

The Undeposited Funds Account

The Undeposited Funds account in the QuickBooks Online Chart of Accounts

If your customer paid you on the spot with a credit card, that payment would be processed in your QuickBooks Payments merchant center. But what about a physical check? QuickBooks Online defaults to the Undeposited Funds account for sales transactions. You can change this, but we don’t recommend it. This account temporarily holds payments—typically cash and checks—that haven’t yet been deposited into your bank.

It’s a good idea to review this account regularly to ensure you’re not leaving funds languishing. Hover your mouse over the Transactions link in the toolbar and click Chart of Accounts. Scroll down until you find it, as pictured above. To combine the transactions in the Undeposited Funds account to make a bank deposit, click +New in the upper left corner and then click Bank deposit under Other. Make sure the Account in the upper left corner is set to the account where you want to deposit the funds. Click the box in front of each check you want to deposit (or Select all), then Save.

To see your deposit information, click Reports in the toolbar, then click Deposit Detail under Sales and Customers. You’ll have to list the deposits individually on your physical deposit slip. Make sure that the slip matches what you see in QuickBooks Online.

If you need help or have questions, feel free to contact us to schedule a consultation. While the process of receiving payments isn’t overly complicated, it’s essential to ensure every payment is recorded accurately and deposited correctly into your bank accounts.

Business Tax Reduction 101: Smart Strategies to Keep More of What You Earn

August 16, 2025 by admin

For every business owner, managing taxes is one of the most important parts of running a successful operation. Overpaying taxes can eat into profits, while smart planning can significantly improve your bottom line. The good news? With the right strategies, you can reduce your business tax liability legally and effectively.

This guide breaks down the basics of business tax reduction—what it is, why it matters, and how to do it.

Why Business Tax Reduction Matters
Paying taxes is a non-negotiable part of doing business, but how much you pay is often within your control. By leveraging deductions, credits, and smart planning, you can:

Improve cash flow
Boost profitability
Reinvest more into your business
Avoid costly penalties and audits

The key is understanding your options and taking a proactive approach throughout the year—not just during tax season.

Top Strategies for Reducing Business Taxes

1. Maximize Business Deductions
The IRS allows you to deduct “ordinary and necessary” expenses related to running your business. Some common deductions include:

Office rent or home office expenses
Business travel and meals (50% deductible)
Equipment and software
Marketing and advertising
Professional services (legal, accounting, consultants)
Employee wages and benefits

Keep detailed records and receipts to support your deductions in case of an audit.

2. Leverage Section 179 and Bonus Depreciation
If you purchase equipment or vehicles for your business, you can often deduct the full cost in the year of purchase through Section 179 or bonus depreciation. These incentives can provide huge tax savings, especially for capital-intensive businesses.

3. Hire Strategically
Hiring employees or independent contractors may qualify you for tax credits and deductions. The Work Opportunity Tax Credit (WOTC), for example, rewards businesses that hire veterans, ex-felons, or long-term unemployed workers.

Also, offering tax-advantaged benefits like retirement plans, health insurance, or commuter benefits can reduce your payroll tax burden.

4. Contribute to a Retirement Plan
Setting up a retirement plan—like a SEP IRA, SIMPLE IRA, or Solo 401(k)—not only helps you and your employees save for the future, but also reduces your taxable income. Employer contributions are typically tax-deductible.

5. Choose the Right Business Structure
The way your business is structured (sole proprietorship, LLC, S-corp, C-corp, partnership) can have a major impact on your tax bill. For example:

S-corporations allow profits (and losses) to pass through to the owner’s personal tax return, avoiding double taxation.
LLCs offer flexibility—you can elect how you want to be taxed.
C-corporations may benefit from a flat corporate tax rate, but may also be subject to double taxation unless handled carefully.

Work with a tax professional to determine the best structure for your business.

6. Defer Income and Accelerate Expenses
If your business operates on a cash basis, you can defer income (delay invoices or payments) to the next tax year and accelerate expenses (prepay for goods or services) in the current year to reduce your taxable income.

7. Take Advantage of Tax Credits
Credits directly reduce your tax liability dollar for dollar. Some examples include:

R&D Tax Credit: For businesses investing in innovation, technology, or product development.
Energy Efficiency Credits: For eco-friendly building upgrades or equipment.
Small Business Health Care Tax Credit: If you offer health insurance and meet eligibility criteria.

Tax credits often require documentation and qualifications, so consult a tax advisor before applying.

Common Mistakes to Avoid

Failing to keep accurate and updated financial records
Mixing personal and business expenses
Ignoring quarterly estimated tax payments
Waiting until year-end to plan taxes
Overlooking tax credits and deductions you’re eligible for

Final Thoughts
Reducing your business taxes doesn’t mean cutting corners—it means planning smartly and using the tax code to your advantage. Whether you’re a solo entrepreneur or run a growing enterprise, these strategies can help you legally reduce your tax burden and improve your financial health.

Partner with a qualified accountant or tax advisor to tailor a tax reduction plan that fits your specific business model. With the right support, you can keep more of what you earn—and reinvest it into the success of your business.

Understanding Depreciation Deductions for Business Real Estate

July 16, 2025 by admin

Depreciation is one of the most powerful tax advantages available to real estate owners. If you own commercial property or use real estate in your business, depreciation deductions can significantly reduce your taxable income over time. However, many business owners miss out on maximizing these benefits due to a lack of understanding.

Here’s a clear and practical guide to how depreciation works for business real estate and how you can use it to your financial advantage.

What Is Real Estate Depreciation?
Depreciation is the process of deducting the cost of a long-term asset over its useful life. For real estate, this means that instead of writing off the full cost of a building in the year it was purchased, you gradually deduct portions of its value each year.

Importantly, land itself does not depreciate—only the building and certain improvements do.

Depreciation Basics for Business Property

Depreciable assets: Buildings, structural components (roof, HVAC, plumbing), and certain improvements
Non-depreciable assets: Land, inventory, and personal residences
Depreciation method: The IRS requires the Modified Accelerated Cost Recovery System (MACRS)
Depreciation period:
- Residential rental property: 27.5 years
- Commercial property: 39 years

How to Calculate Depreciation
Let’s say you buy a commercial building for $1 million, with land valued at $200,000. Only the building portion ($800,000) is depreciable.

Annual depreciation deduction = $800,000 ÷ 39 = $20,513 per year

That’s over $20,000 per year in tax deductions—without spending another dime.

Requirements for Depreciation

To claim depreciation on a property:

You must own the property (not lease it).
You must use it for business or income-producing purposes.
It must have a determinable useful life (expected to last more than a year).
The property must be placed in service (available for use) before you can begin depreciation.

Improvements vs. Repairs

Repairs (e.g., fixing a leak) are usually fully deductible in the year incurred.
Improvements (e.g., replacing the roof or adding a new HVAC system) must be capitalized and depreciated over time.

Bonus Depreciation and Section 179

Although buildings themselves must be depreciated over decades, certain components or improvements may qualify for bonus depreciation or Section 179 expensing, allowing you to deduct more upfront.

Bonus Depreciation: Temporarily allows 100% immediate expensing of qualified improvements (dropping to 80% in 2023 and phasing out by 2027 under current law).
Section 179: Allows immediate expensing of certain improvements, such as roofs, HVACs, and alarm systems, up to a limit ($1.22 million in 2024, subject to phaseouts).

These tools can accelerate deductions and improve cash flow.

Cost Segregation: Supercharge Your Depreciation

A cost segregation study breaks your building into components (e.g., flooring, lighting, fixtures) that can be depreciated faster—over 5, 7, or 15 years instead of 39.

While the study involves a cost (usually performed by specialists), the tax savings can be substantial—especially for high-value properties.

What Happens When You Sell? Depreciation Recapture

Depreciation lowers your taxable income, but it can also increase your tax bill when you sell.

Depreciation recapture: When you sell the property, the IRS may “recapture” depreciation and tax it at a maximum rate of 25%.
That doesn’t mean depreciation isn’t worth it—far from it—but you should plan ahead with your accountant or tax advisor to manage the exit strategy.

Documentation and Compliance

To stay compliant:

Keep detailed records of the purchase price, improvement costs, and depreciation schedules.
Use IRS Form 4562 to report depreciation each year.
Consult a tax professional to ensure accuracy and to explore strategies like cost segregation and bonus depreciation.

Final Thoughts
Depreciation deductions can significantly lower your tax liability and free up cash for reinvestment in your business. By understanding how to apply these rules to your commercial real estate, you can build wealth more efficiently and strategically.

Remember: Real estate doesn’t just appreciate in value—it also helps you depreciate your tax burden.

Retirement Tax Planning: Why It Matters as Much as Ever

June 13, 2025 by admin

For most of us, retirement planning revolves around saving and investing enough to enjoy a comfortable, worry-free life once we stop working. But many retirees overlook a key piece of the puzzle: tax planning. Even after retirement, tax management plays a crucial role in stretching your savings and making the most of your retirement income. Ignoring taxes during your golden years can significantly erode your savings and affect your lifestyle.

Here’s why tax planning in retirement is just as important as when you were working:

1. Taxes Don’t Retire When You Do

Retirement doesn’t mean an end to tax obligations. In fact, many of your retirement income sources—including traditional IRAs, 401(k)s, and pensions—are taxed as regular income when withdrawn. If you don’t have a tax-efficient strategy, you could be hit with higher taxes than expected. For example, withdrawing large amounts from tax-deferred accounts could push you into a higher tax bracket, leading to unexpected tax bills.

2. Social Security Benefits May Be Taxed

Many retirees don’t realize that up to 85% of their Social Security benefits may be taxable, depending on their income level. If you have other substantial sources of income—such as from part-time work, pensions, or retirement accounts—your Social Security benefits could be taxed, reducing your overall income.

3. Required Minimum Distributions (RMDs)

Once you reach age 73 (as of 2023), you are required to take minimum distributions from traditional IRAs and 401(k)s, which are taxed as ordinary income. Failing to plan ahead for RMDs could mean higher tax liabilities down the line, especially if these distributions push you into a higher tax bracket.

4. Healthcare Costs and Medicare Premiums

Your taxable income in retirement can affect more than just your taxes. Higher income levels can lead to increased Medicare Part B and Part D premiums, often called “income-related monthly adjustment amounts” (IRMAA). This is another reason to manage your taxable income strategically to avoid unexpected healthcare cost increases.

5. Estate and Inheritance Taxes

If you’re thinking about passing on wealth to your heirs, tax planning can help minimize estate taxes and ensure your loved ones receive more of your assets. Without proper planning, estate taxes could eat up a significant portion of what you leave behind, especially for high-net-worth individuals.

How to Effectively Manage Taxes in Retirement

Here are a few strategies to help manage taxes effectively in retirement:

Diversify Retirement Accounts: By having a mix of tax-deferred accounts (like traditional IRAs and 401(k)s), Roth accounts (which offer tax-free withdrawals), and taxable investment accounts, you can have more control over your tax liabilities each year.
Strategic Withdrawals: Consider drawing from Roth IRAs or taxable accounts first to manage your tax bracket, leaving your tax-deferred accounts for later years.
Tax-Loss Harvesting: If you have taxable investments, you can sell losing investments to offset capital gains and reduce your overall tax liability.
Work with a Financial Advisor: Tax laws are complicated, and even more so during retirement. A financial advisor specializing in tax-efficient retirement planning can help you navigate these complexities and create a plan that reduces your tax burden.

Just because you’re no longer working doesn’t mean you should stop planning for taxes. Without careful tax management, your savings could diminish faster than expected, leaving you with fewer resources in your later years. By integrating tax planning into your retirement strategy, you can protect your financial future and ensure that your golden years are as financially stress-free as possible.

Managing Business Debt: Strategies for Maintaining Financial Health

May 13, 2025 by admin

Debt is a common and often necessary part of running a business, providing opportunities to expand operations, invest in new equipment, or navigate periods of low cash flow. However, managing debt effectively is critical to maintaining financial health and ensuring long-term success. Poor debt management can lead to cash flow issues, damaged credit, and even business failure. In this article, we explore strategies to help businesses manage debt responsibly and maintain financial stability.

1. Evaluate and Prioritize Debt

The first step in managing business debt is to evaluate all outstanding obligations. Create a comprehensive list of loans, credit lines, and other liabilities, noting the interest rates, repayment terms, and balances for each. Once you have a clear picture, prioritize debts based on factors like interest rates and due dates.

High-interest debt (such as credit card balances or short-term loans) should typically be paid off first, as it can quickly grow out of control.
Secured loans (like those tied to equipment or property) may need to be a higher priority if missing payments could lead to asset repossession.
Consider renegotiating terms with lenders if you’re struggling to keep up with multiple debt obligations.

2. Refinance or Consolidate Debt

Refinancing or consolidating debt can be an effective strategy for reducing monthly payments and lowering interest rates. Here’s how each option works:

Refinancing: This involves replacing an existing loan with a new one that offers better terms, such as a lower interest rate or extended repayment period. This can ease cash flow constraints and make it easier to manage payments.
Debt consolidation: This option combines multiple debts into a single loan, simplifying payment schedules and often resulting in lower overall interest rates. It can reduce the mental burden of managing multiple loans while potentially saving money over time.

Both options are worth exploring, especially if your business has improved its credit score since the original loans were taken out.

3. Improve Cash Flow Management

Effective cash flow management is critical to ensuring that your business has the funds available to meet debt obligations. Here are some strategies to improve cash flow:

Speed up collections: Consider offering incentives for early payments from customers or implementing more aggressive collection policies for overdue invoices.
Negotiate longer payment terms with suppliers: This can help align outgoing payments with incoming cash, giving you more flexibility in managing debt.
Review and reduce expenses: Conduct a detailed audit of your business expenses and identify areas where you can cut costs. Every dollar saved can be used to pay down debt more quickly.

Improving cash flow will allow you to meet your debt obligations more comfortably while keeping the business running smoothly.

4. Use Debt Responsibly

It’s important to take a proactive approach to debt and avoid relying on it for everyday operational expenses. Here’s how to use debt responsibly:

Borrow for growth, not survival: Use debt to fund strategic growth initiatives—such as purchasing equipment, expanding to new locations, or investing in marketing campaigns—rather than as a band-aid for cash flow problems. This helps ensure that the debt is tied to activities that will generate returns.
Avoid overleveraging: Overleveraging occurs when a business takes on too much debt relative to its revenue or assets. This increases the risk of default, especially during economic downturns or business slow periods. Aim to maintain a healthy balance between debt and equity, ensuring that debt levels are manageable even during challenging times.
Track key financial ratios: Use financial ratios like the debt-to-equity ratio and interest coverage ratio to monitor your company’s leverage and ability to meet debt payments. These metrics provide valuable insights into your business’s financial health.

5. Build an Emergency Fund

Having an emergency fund is essential to managing business debt effectively, as it provides a financial cushion during times of uncertainty. An emergency fund can be used to cover unexpected expenses, such as repairs, legal fees, or temporary downturns in revenue, helping you avoid taking on additional debt.

Aim to set aside at least three to six months’ worth of operating expenses in a separate savings account. This safety net will reduce the need to rely on credit lines or high-interest loans during periods of financial strain.

6. Maintain Strong Business Credit

A solid business credit score can make a significant difference when it comes to managing and reducing debt costs. Lenders offer more favorable interest rates and terms to businesses with strong credit, reducing the cost of borrowing and making it easier to secure financing in the future. To build and maintain good credit:

Pay bills on time: Late payments negatively impact your business credit score. Set up automated payments or reminders to ensure timely payment of invoices and loans.
Keep credit utilization low: Use only a portion of your available credit limit to keep your credit utilization ratio low, which positively impacts your credit score.
Monitor your credit report regularly: Ensure that your business credit report is accurate and address any discrepancies promptly.

Conclusion

Managing business debt effectively is a key component of maintaining financial health and ensuring long-term success. By evaluating and prioritizing debt, considering refinancing options, improving cash flow management, and using debt responsibly, businesses can reduce financial stress and free up resources for growth.

Remember, debt can be a useful tool when managed properly, but it requires careful planning, disciplined financial management, and a proactive approach. By taking these steps, your business can stay financially sound while leveraging debt to achieve its goals.