Search Results for: software

Accounting Software for Homeschool Groups

 

Does your homeschool group use software to manage it’s finances?

It’s something you should consider. Carol Topp, the HomeschoolCPA, discusses when you should use software and offers  her opinion on software that’s best for homeschool groups.

 

In the podcast Carol mentioned:

QuickBooks Online. You may be eligible for a free version of QuickBooks Online. I wrote about it here: Use QuickBooks Online for free

Wave Accounting. I set up a small nonprofit on Wave recently. It’s working for them and it’s free!

Aplos Software which is popular with nonprofits and churches.

Ace Money Lite free personal finance software

 

Featured resource
Carol Topp, CPA has written a book just for homeschool treasurers:

Money Management in a Homeschool Organization

  • Does your homeschool group manage their money well?
  • Do you have a budget and know where the money is spent?
  • Do you know how to prevent fraud?

This 115 page book will help you to open a checking account, establish a budget, prevent mistakes and fraud, use software to keep the books, prepare a financial statement and hire workers. Sample forms and examples of financial statements in clear English are provided.

 

Carol Topp, CPA

Save

Save

Accounting software recommendations for homeschool groups

I am thinking we will need to get QuickBooks to manage our finances.  Do we you recommend the nonprofit version?  I have not looked much into this yet.  Any input is greatly appreciated.

Nancy in CA

 

Nancy,

I don’t think you need the Nonprofit version of QuickBooks. Usually the Pro version is sufficient. The Nonprofit edition is helpful if you receive a grant and need to track grant expenses.

I usually recommend online accounting software instead of purchasing a desktop version. Online accounting means that several people can access your accounting records from their home computers. That’s very important. It also downloads your bank transactions automatically!

I recommend:

QuickBooks Online. You may be eligible for a free version of QuickBooks Online. I wrote about it here: Use QuickBooks Online for free

 Wave Accounting. I set up a small nonprofit on Wave recently. It’s working for them and it’s free!

Aplos Software which is popular with nonprofits and churches.

 

I discuss software options in a chapter in Money Management in a Homeschool Organization,
Cover Money Mgmt HS Org

Carol Topp, CPA

Save

Save

New tax deduction for homeschool teachers and tutors in 2018!

Congratulations homeschool business owners which may include homeschool co-op teachers, directors and tutors! There is a new tax deduction that you are (probably) entitled to take on your 2018 tax return!

It’s called the Qualified Business Income (QBI) Deduction.

The QBI tax deduction is equal to 20% of your profit from a “qualified business.”

Tutoring and teaching are both a “qualified businesses” if operated as anything except a C corporation.

If your taxable income is less than $157,500 for a single person or $315,000 for married filing joint, you can claim the 20% QBI tax deduction (even if you are one of the not qualified businesses I listed). If your income is more than those thresholds, your deduction will be phased out.

There are some additional restrictions and complications, especially if your business is an S Corporation, pays wages to employees, or if you have several businesses. So consult your tax professional if those situations apply to you.

 The Qualified Business Income Deduction is found on Line 9 of the 2018 Form 1040. so look for it!

Your tax prep software may not calculate the deduction automatically; you may have to answer some questions to trigger the deduction.

This deduction is for business owners, but not for employees.

Need more help preparing your tax return for 2018 this year?

There is a lot to learn about running a business. I don’t mean to discourage you or anyone else away from operating a homeschool business. You provide a valuable service to homeschool families! I am offering this webinar to help you understand the tax implications:

Carol, thank you again for the webinar. It was one of the BEST webinars I’ve EVER attended. If you do hold another one, I would pay for it hands down.  Totally worth the $10! -Denise, webinar attendee

“I actually don’t care for webinars at all – it is not my learning style at all and I struggle to focus, but this one was extremely value and had my attention”. -Mary, webinar attendee

The webinar was recorded and you can access the recording and slide handout at HomeschoolCPA.com/HSBIZTAXES for a small fee of $10.

Carol Topp, CPA
HomeschoolCPA.com
Helping homeschool leaders

Tips for a New Homeschool Group Treasurer

 

Amanda’s been secretary of her homeschool group, Heartland Homeschool Association in southeast Missouri. But she agreed to a new role as treasurer.

In this short podcast episode (12 minutes)  Carol Topp, the HomeschoolCPA, and Amanda will discuss:

  • Keeping a master file of important papers
  • Having a calendar at every board meeting
  • What a homeschool organization’s treasurer does
  • A really good policy for new treasurers
  • How often a treasurer should give a report
  • Possible software systems for homeschool groups
  • How to get a free copy of Quickbooks online. Use Quickbooks online for free

 

In the podcast Carol mentioned …

 

Does your homeschool board know and understand its duties?

Author and homeschool advisor, Carol Topp, CPA, has created a Homeschool Organization Board Manual. It is a template to create a board member binder. It has:

  • A list of important documents to keep in your binder
  • Section dividers so you can organize the important papers
  • Tools to help you run your meetings smoothly including
  • A sample agenda that you can use over and over again
  • A calendar of board meetings

But this is more than just a few cover sheets for your binder. It is also a 55-page board training manual with helpful articles on:

  • Suggested Board Meeting Topic List
  • Board Duties
  • Job Descriptions for Board of Directors
  • What Belongs in the Bylaws?
  • Compensation and Benefits for Board Members
  • Best Financial Practices Checklist
  • How to Read and Understand Financial Statements
  • Developing a Child Protection Policy

Read more about the Homeschool Organization Board Manual

Carol Topp, CPA

Save

Save

The federal government might be shut down, but you still have to file 1099-MISC by January 31

The US government is partially shut down, but taxpayers still must file their 1099-MISC forms by January 31, 2019.

Your homeschool business, tutoring program, nonprofit organization, co-op or community must give a 1099-MISC to anyone you paid more than $600 in 2018.

 

Greatland cpa academy webinar yearli logo

I recommend you use an online filing system like Yearli.com Core program by Greatland (my affiliate link). I’ve used them for years.

Yearli by Greatland is the best way for businesses to file 1099 and W-2 forms.

I used to buy forms at an office supply store, upload the software, type in the data, run the forms through my printer, and mail them all off! Even just a few 1099-MISC could take a long time! And heaven forbid you misfeed the red ink IRS forms into your printer (I did!). You could not make a mistake or back to the office supply store to but another set! Ugh!

Yearli by Greatland makes it so easy and they charge only $4.99 per 1099-MISC. They send a copy to the IRS and mail a copy to the recipient. Simple!

You’ll receive 15% off your filings because I referred you.
You will need the following information:

  • Your business or organization’s legal name, address and EIN number
  • The recipient’s name, address, SSN number and total amount paid in 2018.

Don’t forget you have to have the 1099-MISCs completed by January 31, 2019!

 

Carol Topp, CPA

HomeschoolCPA.com

 

Standard Nonprofit Accounting Format for Financial Statements

 

I take seriously my responsibility as a CPA to help my clients not just file their annual IRS returns, but to help you better manage your organization and comply with your fiduciary duties of care and compliance.

In order to help you come into better compliance, I have some resources to help you:

1. A webinar Financial Reports for Homeschool Nonprofits that you can view here.

Also included is a handout.

 

2.  Guidelines I call Standard Nonprofit Accounting Format detailed below.

View these guidelines in a Word document: Standard accounting format

Standard Nonprofit Accounting Format

Statement of Activity (also known as Income and Expenses or Profit and Loss)

  1. Income (also called Revenues) should be listed by category at the top of the Statement of Activity
  2. Categories of Income should be the four standard nonprofit accounting categories:
    • Donations
    • Program Income
    • Fundraising Income
    • Income

Subcategories under these 4 standard categories can be unique to your organization.

  1. Donations should list individual names (so I can determine is any donor gave more than $5,000 and a Schedule B will be required that lists donors names and address). This can be in a separate spreadsheet or Word document.
  2. If you use accounting software such as QuickBooks or Aplos
    • There should be no Unapplied Cash Payments
    • There should be no Uncategorized Income
  3. Expenses will be categorized into four standard nonprofit accounting categories and listed below the Income categories:
    • Program Expense
    • General and Administration Expenses
    • Fundraising Expense
    • Misc Expenses

Subcategories under these 4 standard categories can be unique to your organization.

Some expenses such as Wages and Payroll, should be separated into Program or General & Administrative subcategories depending on what the worker was paid to do.

  1. Payroll wages should be separated from payroll taxes and payroll expenses (i.e., payroll service fees). Use subcategories for these three categories of payroll expenses.
  2. If you use accounting software such as QuickBooks or Aplos
    • There should be no Uncategorized Expenses
    • There should be no amounts in Ask My Accountant
  3. Reports should be in Accrued format especially if you use accounting software and send invoices or collect early deposits of tuition or fees for next fiscal year (i.e. deferred revenue). Cash basis is acceptable if your revenues are under $50,000/year and there are no accounts payable, accounts receivable or deferred revenue (early deposits).

Your Statement of Activity/Income and Expenses should look something like this:


Notice the 4 categories of Income (combine Interest Income and Other Income into Misc. Income) and the 4 categories of Expense (Combine Other Types of Expenses and Ask My Accountant into Misc. Expenses).

The indents and subcategories make the statement easy to read.

Some treasurers will add subtotals, but this report left them off.

The bottom line of Net Income is easy to see.

Refund or discounts for Co-op fees are displayed as a reduction in income and are the only negative number allowed on the statement.

Statement of Financial Position (i.e. Balance Sheet)

  1. Assets listed at the top. Assets should include all checking, savings, and PayPal/Stripe accounts
  2. Liabilities listed below Assets
  3. There should be no negative amounts
  4. Net Income on the Statement of Activity should match Net Income on the Statement of Financial Position. If not, there are serious errors in your record keeping. You will need to hire a qualified bookkeeper and/or QuickBooks expert to make corrections.

Your Statement of Financial Position (i.e. Balance Sheet) should look something like this:

If you have questions about these standard accounting formats, please contact Carol Topp, CPA at Carol@HomeschoolCPA.com

If your financial reports do not comply with these standard nonprofit accounting reports, you may need additional bookkeeping assistance. Carol can give you the names of several bookkeepers and QuickBooks or Aplos experts to assist you.

A homeschool group is using free Paypal. Is that legit?

Hi Carol!

Our small homeschool group set up our business account with PayPal to collect payments from our families.

A friend/homeschool leader said we should accept money through the “friends and family” option on PayPal and avoid the PayPal fees. I didn’t even realize this was an option for a business account, but it is. I’m not sure if that’s legit. 

What scenario would I ever accept money via friends and family?

Thanks so much for your service to us homeschooling mamas!

-V, a homeschool group leader

 

Dear V,

Since you are accepting payment for rendering a service, you cannot avoid the PayPal fee.

To use the “friends and family” option would be deceitful.That option is for true transfers of money among friends, but not if your group is getting paid for rendering a service.

No one likes paying fees, but PayPal is doing your organization a service (processing credit card or debit card payments) and you should expect to pay for that service. You may have to increase your fees to the families a bit to cover the extra expense, but paying the Paypal fees is the correct, proper and legal way to run your homeschool group.

Carol Topp, CPA

HomechoolCPA.com

 

Have more questions about managing the money in your homeschool group? My book Money Management in a Homeschool Organization may be just what you need!

Money Management for Homeschool Organizations

Does your homeschool group manage their money well? Do you have a budget and know where the money is spent? Do you know how to prevent fraud? This 115 page book will help you to open a checking account, establish a budget, prevent mistakes and fraud, use software to keep the books, prepare a financial statement and hire workers. Sample forms and examples of financial statements in clear English are provided.


Paperback $9.95

Ebook(pdf) $3.99

Kindle $3.99

 

 

What is Unrelated Business Income or UBIT?

 

A nonprofit group may raise a lot of money from fund raising. These fundraisers could be so successful the leaders may wonder if the homeschool group owes anything to the government in taxes. For the most part, fund raising is not considered part of your nonprofit group’s mission; it is just a means to the end. After all, your group’s mission is to encourage homeschooling, not to sell ads, pizza or other products.

The Internal Revenue Service calls the money a homeschool group or any nonprofit raises from a fundraiser “Unrelated Business Income,” meaning it is money collected in a trade or business that is not related to your primary mission (or what the IRS calls your “exempt purpose”).

In this short podcast episode (13 minutes)  Carol Topp, the HomeschoolCPA, will explain the 4 exceptions to UBIT:

 

Do you have more questions about conducting fundraisers? My book Money Management in a Homeschool Organization can help.

  • Does your homeschool group manage their money well?
  • Do you have a budget and know where the money is spent?
  • Do you know how to prevent fraud?

This 115 page book will help you to open a checking account, establish a budget, prevent mistakes and fraud, use software to keep the books, prepare a financial statement, and hire workers. Sample forms and examples of financial statements in clear English are provided.

Money Management in a Homeschool Organization

Save

Save

When Applying for an EIN, They Want my Social Security Number!

 

Homeschool leader, Paula, was applying for an EIN (Employer Identification Number) online, but the IRS website asked for her SSN (Social Security Number). She is reluctant to give it out. Should she be concerned?

Someone (the “responsible party”) must give their Social Security Number (SSN) so that the IRS can always trace leadership of a nonprofit (or a business) to a human being.

The IRS wants the name and Social Security Number of a specific individual it can contact if needed.

Requesting a name and SSN is also meant to prevent people from setting up dummy or scam organizations.

Listen to this episode (12 minutes) to find out more.

Featured Product:

Money Management in a Homeschool Organization

  • Does your homeschool group manage their money well?
  • Do you have a budget and know where the money is spent?
  • Do you know how to prevent fraud?

This 115 page book will help you to open a checking account, establish a budget, prevent mistakes and fraud, use software to keep the books, prepare a financial statement, and hire workers. Sample forms and examples of financial statements in clear English are provided.

Carol Topp, CPA

Save

Save

Does My Homeschool Group Need Directors and Officers Insurance?

Does My Homeschool Group Need Directors and Officers Insurance?

 

Does your homeschool group need to protect your leaders? Sure you do, so you may consider purchasing Directors and Officers (D&O) insurance.

In this short podcast episode (12 minutes)  Carol Topp, the HomeschoolCPA, will explain:

  • What is D&O insurance?
  • What does D&O insurance protect?
  • When to buy D&O insurance?
  • How does being a nonprofit corporation help?
  • Article on Insurance for Homeschool Groups.

In the podcast Carol mentioned …

Money Management in a Homeschool Organization

Does your homeschool group manage their money well? Do you have a budget and know where the money is spent? Do you know how to prevent fraud? This 115 page book will help you to open a checking account, establish a budget, prevent mistakes and fraud, use software to keep the books, prepare a financial statement and hire workers. Sample forms and examples of financial statements in clear English are provided.

Click Here to request more information!

Carol Topp, CPA

Save

Save