Texas franchise tax reduction - by Jon Andrews, CPA, P.C.
In 1998, Retail Corp opened for business as a sole proprietorship
selling high-volume, low-margin products. The company had tremendous
success achieving annual sales of over $11,000,000 in 1999. The company
employed an internal bookkeeper who was responsible for setting up and
maintaining all of the internal books and records.
The company incorporated in the year 2000 and, rather than set up a whole new
set of books, the bookkeeper created some additional accounts and kept on with
the same set of books. The company continued to evolve, adding new products and
discontinuing others as well as adding another location. In 2001, the bookkeeper
left, leaving the company with a very cumbersome set of internal accounting
procedures and no staff persons trained to be able to handle the day-to-day
needs. By early 2003 it was apparent that the combination of business growth,
staff, and accounting software was making it impossible for management to
receive timely, accurate accounting information, make well-informed decisions,
and do proper business planning.
To help resolve those problems, we did a complete conversion of the
accounting system from Peachtree Complete to QuickBooks Pro. This project
entailed significant planning so that there would be no interruption in the
company's day-to-day business. Below is an outline of the process:
Create initial chart of accounts
Recreate active customer list with all contact information (approx. 1,100 customers)
Recreate active vendor list with all contact information (approx. 300 vendors)
Recreate active inventory item list and create new sorting categories (approx. 600 items)
Create accurate inventory costing information
Recreate other database information
Record all beginning balance information including detailed A/R, A/P, outstanding checks, etc.
Establish and create sales codes, commission codes, and related information for proper tracking
Perform test entries to ensure that above are functioning properly
Delete all test entries
Copy entire system to company server
Set up users, passwords, and permissions
Update for all transactions occurring between beginning balance date and installation date
Provide staff training
After completing the above, we established connectivity between my computer and
theirs using GoToMyPC Pro
so that, at any time, I could log in to their computer and assist them with any
difficulties they were having.
As a result of this project, the company now has accurate, up to the minute
accounting reports so that management has a clear picture of where the business
stands at any point in time. They also have the ability to provide information
for tax planning, financial statements, and management decision-making on a
moment's notice.
If this is something that your business needs, please click here
to send us an email. We will respond quickly with an information request
regarding the specifics of your situation.
The example projects discussed in this site are actual projects that have
been completed. The client names have been deleted to protect their privacy. We would be happy to discuss how these, or other ideas, apply
to your specific situation.
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