QB Winery Solutions

PPP Application and EIDL with Jeanette & Tyler, part 3

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Tyler (Tyler Willis CPA) and I had our third discussion about the Paycheck Protection Program (PPP).  Listen in to find out why the application phase is the Wild West, and then the next phase, after submitting the application, is a Black Box. Last week there wasn’t enough time to handle all the phone calls and requests for information about the program. And this week we have had to hurry up and wait because the SBA and the banks were overwhelmed with applications.

We discuss:

  • What we learned about the PPP application process (It’s the Wild West)
  • What to expect in Phase 2 (It’s a Black Box)
  • What we know about the PPP for non-payroll businesses (For step-by step details Go Here)
  • Why you also want to apply for the EIDL (For details about filling this out see Part 2)

** Check out this post where I curate articles to keep you updated during the Black Box Phase UPDATES

 

  Treasury.gov 4/7/20 FAQs

  EIDL by US Chamber of Commerce

 

How to calculate Full-Time Equivalent Employees

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To complete the Paycheck Protection Program (PPP) application and to verify that you have retained enough employees, you need to calculate the “full-time equivalent employee.” Here is a quickie video to show you:

 

Here are the steps:

  1. Find the report with the hours for the date range
  2. Count the number of paydays in that date range
  3. Assuming your paydays are every other week, multiply the paydays by 60. Reminder: A full time-employee is 30 or more hours per week. For twice a month paydays, use 65 hours.
  4. Anyone who is salaried or works over the number of hours in Step #3 counts a a full-time employee.
  5. For everyone else, divide the actual hours by the number of hours in Step #3, then add these up. This is the full-time equivalent of all of your part-time crew.
  6. Add Steps #4 and #5 for your total full-time equivalent employees.

Paycheck Protection Program, part 2

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Tyler (Tyler Willis, CPA) and I met again to discuss the evolving Paycheck Protection Program (PPP) and other programs available during this unprecedented period. Here’s what we cover:

  • Why apply for both the PPP and EIDL
  • How to get the applications started
  • Locating a bank that handles SBA loans

Please navigate to these points in the video if you would like to jump straight to these topics:

1:30 PPP – Paycheck Protection Program

18:00 PPP application

28:00 EIDA – Economic Injury Disaster Loan Emergency Advance

31:00 EIDA application (We forgot to mention, on page 3 it asks for your industry. Your answer should match your NAICS from your tax return. A winery would be a “manufacturer”)

37:00 Other programs and options

SBA Website

 Paycheck Protection Program by USCC, April 1 version

 Paycheck Protection Program Application

Office Hours 4-2-20

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Here is the recording for Office Hours today. You can find the following wine accounting & QuickBooks topics in this month’s recording:

  1. Commerce Sync – How well does it sync? (6 minute mark)
  2. Shogo.io – Tracking transactions (11 minute mark)
  3. Square – Individual sales reports, transactions & batching (15 minute mark)
  4. Square & Quickbooks mapping – VineSpring (32 minute mark)
  5. Manually entering into Square – Less expensive than VineSpring (39 minute mark)

 

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Quickbooks Undeposited Funds – Keep on Default or Choose?

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Missing the Undeposited Funds window choice when trying to make a deposit or receive payment in Quickbooks? Or do you want to pick a different account to make a deposit? Customize it how you wish. You can choose whether to make the Undeposited Funds the default for the Receive Payment window or for Sales Receipts. The choice is in Preferences -> Payments

Here is a quickie to show you what this looks like (Silver Club members please log in to view)

Paycheck Protection Program, part 1

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I called Tyler (Tyler Willis, CPA) a few days after the Paycheck Protection Program (PPP) was announced. We touched on some of the very basic questions around the program. This is Part 1. Look for Part 2 in a few days. How can it help the winery industry?

The Paycheck Protection Plan is another program from the CARES Act (Coronavirus Aid, Relief and Economic Security Act) that was passed by Congress on Friday, March 27. The purpose of this program is to prevent widespread layoffs during the Covid-19 crisis. A key feature of this program is that you could get as much as 2 months of your payroll and a few other expenses paid through this program. This is a huge benefit for you.

This information is still evolving, so stay tuned for updates. (This recording was not planned…as you can see by my messy office …it’s still tax season…)

Go here for Part 2

Here are some additional resources:

SBA Disaster Programs – This is your main list of all the SBA programs available (there are other agencies with programs)

SBA Disaster Loan Assistance Online Application – This is the page I showed in the video. It is not the PPP program.

 Payroll Protection Program by SBE

 Payroll Protection Program by USCC

 

Office Hours 3-26-20

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Here is the recording for Office Hours today. You can find the following wine accounting & QuickBooks topics in this month’s recording:

  1. Review of Quickbooks Desktop vs Online (1 minute mark)
  2. Entering Transaction Manually (3 minute mark)
  3. The Push-in Method and Square (4 minute mark)
  4. Commerce Sync (9 minute mark)
  5. When do you run in to ‘Tax Included’? (12 minute mark)
  6. Vino Shipper, State Taxes & reimbursements (15 minute mark)
  7. Wholesale Sales to Shops – Charging Sales to a Company Card (22 minute mark)
  8. QuickBooks and the concept of price level list (39 minute mark)
  9. The Summary Method vs the Push-in Method (43 minute mark)

 

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Office Hours 3-24-20

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Here is the recording for Office Hours today. You can find the following wine accounting & QuickBooks topics in this month’s recording:

  1. Square Sales Summary Procedure (3 minute mark)
  2. Sales Summary Procedure – Sales Tax  (7 minute mark)
  3. Sales Tax Item for your Local Sales Tax Rate (16 minute mark)
  4. Sales Shipped out of California –  Tax rules (20 minute mark)
  5. Automations synced to Square (25 minute mark)
  6. Tracking Exclusions on a spreadsheet (27 minute mark)
  7. Custom Summary Report to filter depletions (33 minute mark)
  8. Budgets and Forecasts (35 minute mark)
  9. Virtual Tastings (43 minute mark)

 

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Is your QuickBooks file healthy?

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It’s spring and you should have finished closing your QuickBooks file for last year. Therefore, now is a great time to do some Spring Cleaning! This means it is time to check out the health of the file.

Open QuickBooks and hit the “F2” key to see the Product Information window.

 

 

 

 

File Size: When the file gets too large, it will run slowly. Reports will take a long time to load and new transactions will take a long time to save. This is super frustrating because we all have a hundred things to do at any given time; however, a file with data damage can be very expensive to repair. If you push-in the sales receipts from the POS program, you will reach the maximum file size limit much faster than a winery that does the summary method. If you hit that maximum file size limit, or if you notice that the program becomes sluggish, then it is time to condense the file. Intuit suggests these maximum limits:

Pro/Premier – 400 MB (that’s 400,000 K)

Enterprise – 1.0 to 1.5 G (that’s 1,000 to 1,500 MB)

If the file in the example above was Pro/Premier, then with 300,000K, they are still looking good. In this situation, you should check again in approximately six months to review how the file grew during the six-month timeframe.

DB File Fragments: By design, Microsoft writes bits and pieces of the files throughout the hard drive. This is why you should “de-frag” your hard drive on a regular basis so that you can put the pieces of the files back together. The “DB File Fragments” tell you how many pieces your QuickBooks file is broken up into. This number should be no higher than 10. Too many fragments can create data damage. You want to avoid that scenario at all costs because repairing data damage is both painful and expensive.

File Verification: You should be running the QuickBooks backup with Full Verification on a regular basis. Do not rely on the cloud backup that you also have in place, therefore this step is not part of the Spring Cleaning routine. The file verification will tell you if you have any errors. Let’s assume you are doing this at least weekly – are you getting a regular message to Rebuild the file? If so, double-check the DB File Fragments and File Size. If that doesn’t fix the problem, then give your friendly ProAdvisor a call.

READ THIS FIRST: Before you condense, you must clear up all of the errors. The condense will not fix errors and it can make some errors worse. Therefore, first fix the file fragments, then do the condense. As a side note, before you upgrade the file to the newest version, complete these steps and fix all of your errors first. The upgrade will not fix errors either.

To fix the file fragments, you do what we call the Portable File Round-Trip:
Make a Portable file (File -> Create Copy -> Portable Company File).
Restore that file and give it a new name. I typically change the “tail” of the file name instead of changing the whole filename.
Do this 2 more times.
You will do 3 round-trips; this should reduce your file fragments to one, as in the example above.

If you need to condense, read on….

If you have QB 2019 or newer, Intuit added a new condense feature that deletes the Audit Trail. This can reduce the file as much as 30%. Murph (one of us ProAdvisors’ favorite go-to tech guy for all things QuickBooks), typically doesn’t like the QB condense feature, but he really likes this new option.

Step 1 – Make a backup with full verification.

Step 2 – Pull a current trial balance. You will use this to compare the file after the condense.

Step 3 – Condense by deleting the Audit Trail. (File -> Utilities -> Condense File) Make a backup before you start, and store this is a safe place because you never know if you will need this information.

Step 4 – If you want to make the file even smaller, use the second step of the condense to remove selected transactions. The usual choice is “transactions before …” then pick a date. In the next window, you have 3 choices about how to handle the transactions that will be removed.

  1. One summary journal entry: This is a good choice for you folks in the wine industry. However, the journal entry does not show the class or the item detail, therefore there is no useful information. However, this option will make the adjustment to true up the file to match the original Trial Balance minimal.
  2. Summary journal entry for each month: This information is virtually useless for the wine industry, so don’t bother. It also takes a long time to run.
  3. Don’t create a summary: This is also a good choice because the information in the single journal entry is essentially useless. You will need to create a journal entry to adjust the beginning account balances.

For a detailed list of all the steps, refer to this article by Intuit, or call your favorite ProAdvisor.

Condense Data File

If you find that the Trial Balance has a huge discrepancy from the original Trial Balance, or if you are getting some goofy results, then it is time to call a specialist. I recommend Matt Clark, who is essentially a QuickBooks file doctor.

Good luck and always remember to make a backup before you start so that you can restore the file if the results are not what you expected!

Office Hours 11-26-19

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Here is the recording for Office Hours today. You can find the following wine accounting & QuickBooks topics in this month’s recording:

  1. Part 1: I purchased a barrel from my client. I also owe the same client a credit from a previous production contract -How do I record this transaction? – at the .41 min. mark
  2. Part 2: How do I convert my client’s bill into a credit- at the 1.25 min mark
  3. How do I create a statement? at the 7.55 mark
  4. I lost a barrel of wine. How do I track the cost of wine that was lost? – at the 15.42 min mark
  5. Grape Bills – How do I record the grapes that were over my contract amount?  I did not have to pay for them – at the 16.34 minute mark
  6. I did not order enough glass or corks – How do I account for the wine I did not bottle? – at the 17.49 minute mark
  7. How do I record use ONE bill to record my grape bill, but pay the bill per my installment agreement? – at the 19.50 minute mark
  8. I have 4 users who need to access our QB file – 2 users only have access to MacOS – Should I use QBO? – at the 27.02 minute mark

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The Crush

Your first step to running a profitable winery and crushing your business goals.