WEBVTT
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The topics and opinions express in the following show are
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solely those of the hosts and their guests and not
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those of W FOURCY Radio. It's employees are affiliates. We
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make no recommendations or endorsements for radio show programs, services,
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or products mentioned on air or on our web. No
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liability explicitor impliedes shall be extended to W FOURCY Radio
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or its employees are affiliates. Any questions or comments should
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be directed to those show hosts. Thank you for choosing
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W FOURCY Radio.
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Barry G.
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Fouler EA brings you tax Talk for you right here
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on W four CY Radio and Talk for TV. As
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an enrolled agent and a national leader in tax resolution
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as well as Trucker bookkeeping and tax planning. With over
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thirty years of experience, Barry will break down taxes, bookkeeping,
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tax planning, and tax relief for individuals and businesses just
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like you. So let's have some tax Talk for you
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with your hosts. Barry Glen.
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Hey, welcome man, another great day. It's a great way
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to start off a week is joining here with me
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at Tax Talk for you.
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Hey.
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You can make sure you catch every single episode or
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if you've missed one. You can go and hear the
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podcast as well if you just go to tax talkforu
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dot com. Hey, you know, today's one of those days
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where you come in and you're ready to go and
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get things started, and.
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Everything that can go wrong does go wrong.
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Realized today that I had a very sick dog at home,
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so decatureday, I needed to get that dog first thing
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this morning to the vet, and I'm going to work
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from home and do this program from home. And we're
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five ten minutes from showtime and realize that I forgot
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to set up the camera, I forgot to set up
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the microphones, I forgot to be ready to go give
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you a great show. So you know, little things go wrong,
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you jump through those hurdles, you get it all done
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in those ten minutes, and now it's like, hey, we've
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got to answer these questions for people that have messages
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in so you know, if you ever have questions during
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the week, we love to build our shows around questions
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that our listeners want to know about. And the biggest
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question we've been getting in the last few weeks and
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it's people that are realizing they're coming to the end
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of the year. They don't have their bookkeeping or their
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accounting and stuff done, and what software should I use? Well,
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let's start off. You know, accounting software or bookkeeping software
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at a minimum should be tracking your financial transactions to
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record and produce a profit and loss, to help you
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improve your business finances, to help you track and figure
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out ways to improve your overall cash flow. You know,
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the core functions of the bookkeeping software should be you know,
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general ledger accounts, payable accounts, receivable, to be able to
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do bank reconciliations, maybe track your bank transactions, purchase orders,
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payment reminders, maybe even payroll services. You know, there's a
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lot of industries out there that would need something that's
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customizable for financial management functions, such as software that's needed
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for nonprofits for fund accounting, or job costing for construction firms,
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or compliance for government contractors. And then there's different ways
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of being able to conduct your accounting processes a single
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or double entry accounting. We're not going to get into
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that part that takes many courses and understanding of the
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different accounting processes. When the software does things like that
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seamlessly behind the scenes. So you know, what key features
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would you be looking for in your bookkeeping software. You know,
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we can break it down into common areas that are
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found in almost all bookkeeping software. Some of them might be
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industry specific. So most software is going to have all
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your core accounting covers revenue, expense tracking, create your financial reports,
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including your cash flow statements, your accounts receivable aging, your
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general ledger, your accounts payable. All these things would basically
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be in your core accounting syst You may have payroll,
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and if you're doing payroll, you may decide you need
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it right within the software. And it could be a
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payroll system that's embedded into quick books or zero or
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fresh Books, or you know, one of the many softwares
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that that's out there. Help you manage employee compensation, calculate
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your wage calculation, direct deposits, check printing, your federal tax payments,
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your federal tax forms, all that are needed through payroll.
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Your bookkeeping or accounting should include billing and invoicing so
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you can pay bills and create send invoices. You know,
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all these things should be in there. Also, calculate your
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sales tax if you haven't to charge sales tax collected
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and pay it, and then track your customer payments via
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a credit card or bank transactions. All software should have
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the ability to be able to do bank reconciliations, even
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importing your bank records, sometimes in real time, and then
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systems can attempt to automatch bank and accounting record so
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you have those features out there.
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Now.
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Other features that are available maybe purchase orders, where you
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create the financial document issued to vendors when you're buying
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supplies or services. Especially if you're doing job costing out there,
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you may need purchase orders so you can apply it
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to the right job. And those purchase orders will include
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such things as product type, quantity, and pricing. So that's
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another item that you might be looking for in your software.
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Maybe you track inventory, so you need inventory management, so
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inventory be tracked as a current asset on the balance sheet,
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and then as it's used, it's going to track the
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costs of goods sold on the income statement as an expense.
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So those are the things that you might be looking
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for in your software.
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Now.
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The most common additional features requested by people looking for
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bookkeeping or accounting software is it, of course, the payroll,
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discuss inventory control, invoicing, job costing, your purchase orders, your
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bank reconciliations, order management, cash management, estimating, and then last
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but not least, budgeting. A lot of the software has
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budgeting in it, but not very many people use it,
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so people are not necessarily looking for the software that
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has the budgeting functions out there. But a lot of
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times are looking for integrations as well, and it could
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be everything from credit card acceptance to that payroll integration,
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maybe some kind of advanced reporting or stronger inventory tracking.
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So you've got to look at all those things. But
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if you can find it in the software that you're choosing,
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sometimes that software works better for you based on your
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needs to make running your business easy as possible. Now
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a lot of places are not going to be on desktop.
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Most are now going to be online, and so you're
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looking at services from different software companies that are online,
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not on your desktop or your laptop, and so you
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may be looking at the different softwares that are out there,
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such as Striven, which I've not heard of before. When
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I started doing research on the best bookkeeping software that's available,
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and Driven was best for service based industries, or Dynamics
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three sixty five, which was best for Microsoft integration, or
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Zoho Books best for growing company net suite. It's a
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good software, not something I'm really recommending. We'll go through
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some of this as we go through this program stage intact,
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it's best for multiple entities, So if you're running two
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or three entities and they roll up into one stage,
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intag might be the best way to go. Custom Books
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is considered to be the best for CPAs, which means
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it is going to be a little more complicated for
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you to be using without the knowledge of being a
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certified public accountant or very experienced accountant. Fresh Books is
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considered best for freelancer. Quick Books Online, they're saying is
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best for online sellers and independent retailers. And my favorite
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software and I'll explain later as we go through this
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is zero. It's considered to be the best overall, and
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I would give them a five star rating out of
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five as well. A lot of times people are asking me,
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you know, hey, I've seen this software or that software.
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Should I use this one? This one's a little bit
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less expensive, this one's a little bit more Can I
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get away with using something that is cheaper or expensive
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or can I just do this in a spreadsheet? Well,
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doing it in a spreadsheet is really considered to be
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a single entry transaction. So all you're doing is taking
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and putting down a list of all your expenses. So
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you may take a spreadsheet and put across the top
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the different categories that you may be deciding you wanted
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to track, and on the left side, going down, you're
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putting the data the transaction and you're putting all the
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transactions in. Hopefully you've got an account column for revenues.
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You put in all your revenues, and then your expenses
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are all going down here and then you total. Are
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you sure you got everything? You're sure you didn't miss anything.
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There's no bank reconciliation in a spreadsheet. So is that
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the right way to go? No, I would say it's
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not the right way to go, even if if you're
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a small business.
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Now, what's going to be the right way?
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Let's take a look at some of these other softwares
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like freshbooks or Zoho Books.
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Right after this quick break.
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We have only scratched the surface of today's show. Please
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stand by as Barry G. Fowler will be right back
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with tax talk for you. If you own the IRS
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or are going through an IRS audit, don't go at
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it alone. Called taxation solutions, tax relief at eight eight
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eight nine three zero one zero one six. We are
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your solution for IRS debts, audits, back taxes, garnishments, leans
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and levees. Whether you're an individual or business, you need
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a solution and a strong aggressive tax resolution. Don't let
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the IRS walk all over you. Stop the IRS now
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call eight eight eight nine three zero one zero you
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O one six or go to Taxationsolutions dot net now
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for a free no obligation consultation. Let's get back to
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tax stock for you with more tax stock once again.
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Here's your host, Barry G.
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Fallon. Hey, welcome back.
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You know, hey, look, if you had trouble with your books,
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maybe you didn't file your taxes correctly and you owe
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the IRS money. Now, maybe you've gone through an audit
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and you couldn't support anything because maybe you were using
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that spreadsheet and you didn't capture all the revenues that
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you had coming in, or maybe you didn't capture all
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your expenses and you need to have representation either in
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an audit or you lost the audit. Now you owe
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a bunch of money, or you just didn't get any
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advice whatsoever, and you owe the IRS money. Hey, give
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taxation solutions tax relief a call at eight eight eight
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nine three zero one zero one six again eight eight
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eight nine three zero one zero one six. Now that
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being said, and you're looking for that software that you
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need to help you in your business, and somebody's recommended
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fresh Books. You know, fresh Books it is good for freelancers,
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independent contractors, solo entrepreneurs, even maybe a micro business maybe
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with two to five. You might find the software useful
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for invoicing time, maybe expense tracking, but getting the reports
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out of fresh Books that you need may not be
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the right software. It's they're not as easily customizable. It's
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very limited in what you can customize out there. There's
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no bulk invoice creation. So if you're somebody that has
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people that you need to send invoices out in bulk
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and similar, it's really hard to do. Reporting does have
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twenty built in reports that they have created to help
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you monitor your financial health, like the profit and loss,
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general ledge or balance sheet, etc. But some of the
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comparisons and customizations that you may want in your business
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and may not be the right tool for you.
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I do know that.
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Fresh Books you can also accept credit card payments and
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ach bank transactions right there in the software, so maybe
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that could be advantage for you. It does allow reoccurring
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invoices and customizable payment terms. Starting price runs about twenty
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one dollars a month, not bad for a starting price
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that's out there. It does limit some of the services
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and everything you can do, but they do allow you
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to go out there and try a demo. The other
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one that we were going to look at is Zoho
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Books and considered to be best for growing companies. It
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supports businesses operating in different countries. Now, most small businesses
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that are operating here, you're not going to be operating
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in different countries, and you're not doing extensive with multi
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currencies or currencies or multi language capabilities. And it does
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integrate and you have to use other payment gateways like Strive, PayPal, Square,
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so you have some flexibility and payment acceptance, But again,
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are those the right way you wanted to go and
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if you're looking to expand your business and operate internationally.
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Zoho is definitely known for scalability and the plans that
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they have. They do offer a free version to some
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very advanced options for mid sized enterprises and each one
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will allow you to add so many users out there,
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so it does have a client portal for sales and