Tag Archives: quickbooks online

December 22, 2016

QuickBooks Online & HIPAA: What I’ve Learned (so far)

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Lately, I’ve noticed an uptick in clients from the health and wellness industry wanting to move to the cloud.  QuickBooks Online is such a GREAT fit for this industry, but there are some things you should know.

Per Intuit’s support community:

“Currently, QuickBooks Online (QBO) meets industry standards for online security, but is not compliant with the HIPAA standards for privacy. If you are a health care professional using QBO, it is not recommended that you enter in ‘individually identifiable health information.’…We don’t have any further information on this subject, and we’re not equipped to advise you. For more information on the subject, as well as to seek legal advisement regarding this issue, go to: http://www.hhs.gov/ocr/hipaa/.”1

…and that’s all they have to say ’bout that.

So, where does this leave medical offices that need to comply with HIPAA but want to leverage available technology?  My recommendation is always to keep your protected health information secured within your HIPAA-compliant medical billing software.  QBO can do invoicing, but it isn’t designed for medical billing.  Handling insurance invoices, cash payouts, deductibles, and co-pays are best left to your existing software.  Seek out other clinics within your industry and ask them what they use.  What do they like about it?  What would they change about it?  What’s the most cost-effective for you?

That being said, there is nothing preventing you from SUMMARIZING your revenue in QuickBooks Online by using sales summary receipts or invoices to record your revenue by service, insurance company, or event patient type.  As long as the information being entered is not “protected health information” you are in the clear.  The definition according to the US Department of Health & Human Services is

“…information, including demographic data that relates to:

  • the individuals past, present or future physical or mental health condition,
  • the provision of health care to the individual,
  • the past, present, or future payment for the provision of health care to the individual,

and that identifies the individual or for which there is a reasonable basis to believe it can be used to identify the individual.  Individually identifiable health information includes many common identifiers (e.g., name, address, birth date, Social Security Number).”2

So, though you may not be able to look up the precise amount of John Doe’s care to date in QuickBooks Online, you can still see how your clinic is performing by comparing month to month, year over year, etc.  You can check your gross margin by comparing your revenue received from a certain treatment vs. the expense associated with performing the treatment.  Tracking how much business is coming in from insurance companies vs. how much comes in from cash-paying patients can help make decisions about marketing and growth strategies.  All of these metrics (and many more) are possible while using QuickBooks Online in conjunction with medical billing software.

As much as accountants like me would like to see our software become HIPAA-compliant and be the end-all be-all for all industries, in some cases (such as this one), it’s best left to the experts.  Any accountant or bookkeeper that is hired to take on the task of managing your books should be willing, at a minimum, to sign a “Business Associate Agreement/Contract” (a sample can be found here: https://www.hhs.gov/hipaa/for-professionals/covered-entities/sample-business-associate-agreement-provisions/index.html) in order to access any of your software that may contain protected health information.

Partnering with an accounting professional who specializes in accounting for the healthcare industry is a sound investment in the prosperity of your business and will likely be your best bet in ensuring your clinic and staff remain HIPAA-compliant.  Dynamic Bookkeeping loves working with medical professionals and would be happy to assist!   Click here to schedule a quick phone call to see if we may be a good fit!



September 29, 2016

Why Should I Move to QuickBooks Online?

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Recently, a client and I were having a discussion about the merits of migrating his books from QuickBooks desktop to QuickBooks Online.  A common concern arose: “Why would I pay a monthly subscription fee when I’ve got the desktop version right here and it works fine?”  It occurred to me in that moment that those of us in the accounting industry who leverage technology don’t always do a great job of “selling” the benefits of cloud accounting to our clients – we take it as a given that they will join us without question.  So, below I bring up the most common questions/concerns I’ve heard and the responses I provide.

 I don’t want to pay for a monthly subscription, I can use desktop as long as I want.  This is partially true – you can use desktop as long as you’d like.  However, Intuit officially stops supporting their desktop versions as soon as they hit 3 years old.  This means that some of the features you may have come to rely on will no longer work, or may be buggy.  Further, as Microsoft continues to update Windows, you may find yourself with a version of QuickBooks that is no longer compatible with your operating system.

Conversely, QuickBooks Online is ALWAYS up to date.  Intuit rolls out features and bug fixes all the time to ensure your QBO experience is smooth and on the cutting edge.  The cost of the subscription when partnered with a QuickBooks ProAdvisor or accountant that offers wholesale pricing is essentially the same or even less expensive than purchasing the new desktop software each year.

Having my financial information in the cloud isn’t secure.   I must respectfully disagree.  Your information is already in the cloud, whether you access it or not.  Unless you’re operating your business off the grid and in cash, you’re in the cloud.  QuickBooks Online uses bank-level encryption and has built-in redundancies to ensure security and essentially no service interruptions.

I love being tied down to my desk in order to access my accounting software.  Okay, so this isn’t really a “common” argument I hear.  But it is worth noting that QuickBooks Online allows your business to be mobile.  You can create invoices and track time in the field, take payments from your smartphone or tablet, sit by the pool while you classify transactions and access customer data from anywhere you have an internet connection.  QBO allows multiple users AND free accountant access.

Gone are the days of saving a back up to a disk and bringing it into the CPA to have taxes done; now you send an invite to your accountant and voila! Access is granted.  Your tax professional can make adjustments right there in the file without saving another back up that you will then need to restore into your books.  Let’s hope you hadn’t been working in your company file while these adjustments were being made….once the back up is restored, all that hard work is gone.  No bueno, indeed.

Some businesses tried to use virtual servers like RightNetworks to “host” their QuickBooks desktop file online in order to have access from anywhere.  Not only is this FAR more expensive than the cost of a QBO subscription, but the process of getting on these remote servers and ensuring more than one user wasn’t working in them at the same time was a nightmare.  QBO allows multiple users to be in the file at the same time and has built-in warnings if something is being edited by two or more users simultaneously.

But how do you get my transactions if you don’t come into my office to review my receipts and statements?  Did you know that QuickBooks Online connects directly to your business banking and credit card accounts to pull your banking data in nightly?  All that is needed is a quick glance to ensure the transaction is classified properly.  Best of all, once you classify a transaction a certain way, QBO will “remember” so the next time the same vendor comes through it can be auto-classified.  Since all transactions have come through the bank, your account is essentially reconciled once these charges and deposits are added to your books!

Dynamic Bookkeeping has several years’ experience migrating QuickBooks desktop to QuickBooks Online.  Book a quick phone call with us to get started!

July 7, 2016

I heard QuickBooks Online was horrible…” and other common misunderstandings

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It wasn’t too long ago when the idea of moving your business online was scary. Is it secure? Is it safe? Will anyone buy from me? As we all now know, going to the cloud has become a no-brainer: you almost HAVE to have an online presence if you’d like to be successful! Websites have replaced business cards and Google has replaced the Yellow Pages. Most people utilize secure online banking and never set foot into a bank. So, why should your accounting software be any different?

Also not long ago, Intuit made its foray into the world of cloud accounting with what would become QuickBooks Online. To say it was clunky, unreliable and not very user-friendly was an understatement. Most early adopters took one look at QBO and decided their trusty QuickBooks desktop file was just fine. Well, folks, Intuit was paying attention. After many thousands of dollars and development hours, a newer, more aesthetically pleasing and reliable QuickBooks Online was introduced.

“This new QBO looks pretty, but will it work for my industry?” The answer was a solid MAYBE for most businesses initially. It worked well for service- and professional-based industries. It incorporated a newly-branded QuickBooks Payments (aka Intuit Payment Network) so customers could pay via invoices emailed directly to them (gasp! No more snail mail!?!?) and made it easy to “share” the books with other users and your bookkeepers/accountants without the need for thumb drives, remote applications, and backup files. However, if you had inventory, if you were in construction, manufacturing, or any other type of industry that needed features like job costing, progress invoicing, inventory management or point-of-sale support….well, you were out of luck. Or were you?

You WERE NOT!  Intuit opened up their API (ie: programming back door) to allow 3rd party developers to create applications that  connect with QBOand provide specialized features for all sorts of industries!  Time trackers, payroll apps, inventory management, job costing, project management, sales tax management.  You name it, there’s probably an app that will get the job done.

Once every four to six weeks, Intuit sends updates through to QuickBooks Online.  Sometimes they’re small bug fixes, but usually these updates are making QBO more and more usable as a standalone product for most industries.  A year ago I would never have dreamed of sending a general contracting client to QBO – now, an affordable app called Knowify integrates flawlessly to provide job costing, progress billing, time tracking and work in process tracking!  AND Intuit has job costing on their radar to be added very soon.  Non-profit organizations now have specialized reporting and a standard chart of accounts specific to their industries and in non-profit-eeze!  Best of all, a quick click on the Feedback button in QBO allows users to submit their ideas for improvements or features they’d like to see soon.

QuickBooks Online will never be the end-all be-all for businesses, especially in the new era of Cloud Computing, but QuickBooks desktop won’t be, either.  Now is a great time to migrate over to the cloud and see how much more efficient you can be while watching your business grow.  Let us walk you through QBO and help you migrate!

February 3, 2016

Sales Receipts vs. Receive Payments vs. Bank Deposits – Explained

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Regardless of what QuickBooks software or online version you are using, you are bound to run into this fork in the road: how do I know whether to create a sales receipt, receive a payment or make a bank deposit? These three options are readily available to you, but unless you are a QuickBooks Pro (and sometimes even if you are), knowing which option to choose can be perplexing. So, I’m going to walk you through these three options to further explain what they are for and when they should be used.

When you use receive payments, you are applying a payment to something that has already been invoiced or billed. I provided a service or product to you, sent you an invoice, and then you paid it. There’s a length of time in between these two tasks. Invoice then payment. Only use receive payments if you will be applying the payment to an invoice.

So, how are sales receipts different? Think of a sales receipt like walking into a department store. When you purchase something there is no invoice created, only a receipt. This is because there was no expectation that you were going to buy anything when you walked in the door. In the case of your business, this may mean someone buys something on the spot so there’s no need for an invoice. A sales receipt combines an invoice and payment into one transaction. If a customer pays for something before you’ve had a chance to create an invoice, save yourself a step and use a sales receipt.

Now, think about your bank statement for a moment. When you see cash/check deposits made, do they show up as each individual payment or do they show up as one large lump sum? They will almost always be added as one lump sum. So, how do we make that lump sum match each individual payment or sales receipt we’ve created? We’ll create a bank deposit!

When creating a bank deposit, you will notice two very distinct sections:  A section that shows each payment and sales receipt you just created (if you’re not seeing these payments and receipts, you may have listed the ‘deposit to’ account as the bank account instead of undeposited funds…go back to those payments/receipts and make changes as necessary) as well as a second section below with blank lines.  

You will click each of the individual payments and sales receipts that are making up the deposit. The lines below are meant to record any loose change or funds coming in that don’t necessarily need to be recorded by customer. An example might be ticket sales. Maybe you’ve collected $500 by selling tickets to an event you’re putting on, but it’s not important to know exactly who bought tickets or how many. Instead of doing a sales receipt for each individual ticket sold, just add the total of the sales, select the proper income account (ticket sales in this example) and then add the total.

When all is said and done, the total deposit will be all payments & sales receipts plus any other funds coming in that aren’t being tracked by customer. This amount should match what will end up on the bank statement.

Stay tuned for more tips and tricks!  Want to know something specific?  Reach out to us!