Jackson & Associates CPA – Accounting & Tax Blog

3 Ways to Receive Payments in QuickBooks Online

July 7, 2025 by Admin

Subscription Billing on Laptop, Automate Recurring Payments for Business Success, Vector Flat Illustration

Got customer payments coming in? QuickBooks Online has multiple ways to accept and record them.

One of the biggest challenges small businesses face is managing a steady cash flow. Keeping income ahead of expenses is a constant balancing act. QuickBooks Online can help. With easy-to-use forms and a convenient mobile app, it helps you track and deposit incoming payments with ease.

Do you ever receive instant payments for certain products or services? Ever need to record a sale on the go—both for your records and your customer’s? Or maybe you send out invoices and want to ensure payments are accurately logged once they come in. QuickBooks Online has you covered in all these scenarios. Plus, it offers automation tools that speed up the payment process—so you can get paid faster and focus on growing your business.

Let Customers Pay Online

If your business sends invoices for products or services, QuickBooks Online makes it easy to record customer payments. While you can manually enter payments, there’s a faster, more efficient option: QuickBooks Payments. This built-in merchant service lets you accept credit card and bank payments electronically—helping you get paid quicker and streamlining your cash flow.

Once QuickBooks Payments is set up in QuickBooks Online (contact us if you need help), your invoices will include integrated payment options for credit cards and electronic checks. Each invoice will feature a payment button, allowing customers to easily enter their payment information. You’ll be able to track when an invoice is viewed, paid, and deposited. Simply open your list of invoices and click on one to view its details. A timeline panel will slide out from the right side, showing the invoice’s history and status. Plus, you can opt to receive notifications for invoice activity.

If you prefer to record payments manually, find the unpaid invoice in your list and click the Receive Payment link at the end of the row. This opens the Receive Payment screen, where you can fill in any missing details and save. You can also find the same link on the invoice screen itself or from the Invoices page (SalesInvoices).

You can receive payments manually in QuickBooks Online from an invoice itself or from the Invoices page.

There’s no cost for setting up a pay-as-you-go account in QuickBooks Payments. There are only per-transaction fees:

● ACH bank payments are 1%.

● It’s 3.5% if the payment comes in through an invoice (Apple Pay, Google Pay, credit cards, etc.) or if the payments are keyed in.

● If you swipe a card, you’ll pay 2.4%

There’s also a $0.30 fee per transaction. Transaction fees are slightly lower if you pay $20 per month. Payments that come in before 3 p.m. PT should be in your account the next business day.

Accepting Payments Through GoPayment

To take payments while you’re on the road, you’ll need a free mobile card reader from Intuit that connects to your smartphone. It supports tap, chip, and digital wallet payments. You can also manually enter card details (see above rates). To process transactions, you’ll need to download the GoPayment app, available for iOS and Android. The app lets you add product names, prices, and images to make checkout faster and easier. Multiple layers of security are in place to help protect your data during mobile transactions.

Receiving Instant Payments

Sometimes, you’ll receive payment right after delivering a product or service. In these cases, QuickBooks Online allows you to create and provide a sales receipt on the spot. Just click +New in the upper left corner, then select Sales Receipt in the Customers section. The form that opens will look similar to an invoice or estimate. Choose the customer in the upper left corner, and fill out the remaining details as you normally would. When you’re finished, click Save and send to email the receipt. You’ll have the option to preview it before sending and to print it.

The Undeposited Funds Account

The Undeposited Funds account in the QuickBooks Online Chart of Accounts

If your customer paid you on the spot with a credit card, that payment would be processed in your QuickBooks Payments merchant center. But what about a physical check? QuickBooks Online defaults to the Undeposited Funds account for sales transactions. You can change this, but we don’t recommend it. This account temporarily holds payments—typically cash and checks—that haven’t yet been deposited into your bank.

It’s a good idea to review this account regularly to ensure you’re not leaving funds languishing. Hover your mouse over the Transactions link in the toolbar and click Chart of Accounts. Scroll down until you find it, as pictured above. To combine the transactions in the Undeposited Funds account to make a bank deposit, click +New in the upper left corner and then click Bank deposit under Other. Make sure the Account in the upper left corner is set to the account where you want to deposit the funds. Click the box in front of each check you want to deposit (or Select all), then Save.

To see your deposit information, click Reports in the toolbar, then click Deposit Detail under Sales and Customers. You’ll have to list the deposits individually on your physical deposit slip. Make sure that the slip matches what you see in QuickBooks Online.

If you need help or have questions, feel free to contact us to schedule a consultation. While the process of receiving payments isn’t overly complicated, it’s essential to ensure every payment is recorded accurately and deposited correctly into your bank accounts.

Understanding the Estate and Gift Tax Exemption

June 13, 2025 by Admin

The estate and gift tax exemption is a crucial aspect of tax planning for individuals looking to transfer wealth while minimizing tax liabilities. This exemption allows individuals to transfer a certain amount of assets either during their lifetime or upon their death without incurring federal estate or gift taxes.

Understanding the Estate and Gift Tax Exemption

The estate and gift tax exemption is set by the federal government and adjusted periodically for inflation. It represents the total amount an individual can transfer without being subject to federal estate or gift taxes. If the total value of gifts and estate transfers exceeds this threshold, the excess is subject to tax at the prevailing rate.

Current Exemption Limits

As of recent tax years, the exemption limits have been historically high, allowing individuals and married couples to shield substantial wealth from taxation. For instance:

2023 Exemption: $12.92 million per individual ($25.84 million for married couples)
2024 Adjustments: Expected to increase with inflation

These exemptions are set to sunset after 2025, potentially reducing the exemption limit unless Congress takes action to extend or modify the provisions.

Gift Tax Annual Exclusion

In addition to the lifetime exemption, individuals can take advantage of the annual gift tax exclusion. This allows taxpayers to give a certain amount per recipient each year without affecting their lifetime exemption. For 2023, this exclusion is set at $17,000 per recipient.

Planning Strategies

Utilize Annual Gifting – Leveraging the annual gift tax exclusion can help reduce taxable estates over time.
Establish Trusts – Irrevocable trusts can provide tax benefits while protecting assets for future generations.
Consider Charitable Giving – Charitable contributions can reduce taxable estates and provide philanthropic benefits.
Monitor Legislative Changes – Since exemption limits are subject to legislative revisions, staying informed about potential changes is critical for effective planning.

Conclusion

The estate and gift tax exemption provides significant opportunities for wealth transfer planning. Understanding current limits and employing strategic gifting techniques can help individuals and families minimize tax liabilities while ensuring a smooth transfer of assets. Consulting with tax and estate planning professionals is advisable to navigate complex tax regulations and maximize benefits.

How to Improve the Value of Your Business Before You Retire

May 13, 2025 by Admin

Retirement is a milestone many business owners dream about—but selling or transitioning your business isn’t just about handing over the keys. To ensure a profitable exit, it’s essential to increase your business’s value before you step away. Whether you’re planning to sell to a third party, transition to family, or install a management team, enhancing your business’s worth will make the process smoother and more lucrative.

Here’s a strategic roadmap to help you improve the value of your business before retirement:

1. Start With a Clear Exit Plan
The earlier you plan your exit, the better. Ideally, give yourself 3–5 years. Determine your goals: Do you want to maximize price? Maintain your legacy? Ensure job security for employees? The answers will influence the steps you take.
Action Step: Work with a financial advisor and business consultant to develop an exit strategy aligned with your personal and financial goals.

2. Get a Business Valuation
You can’t improve what you don’t measure. A formal business valuation gives you a realistic view of what your business is currently worth and what factors influence that number.
Action Step: Hire a valuation expert to identify key value drivers and areas for improvement.

3. Strengthen Financial Performance
Buyers look closely at profitability, cash flow, and financial records. Clean, organized, and transparent financials not only boost value but also inspire buyer confidence.
Action Step: Improve your profit margins, reduce debt, and eliminate unnecessary expenses. Implement sound financial reporting systems.

4. Systematize and Document Operations
A business that runs smoothly without its owner is far more attractive than one dependent on a single person. Systems create scalability and reduce perceived risk.
Action Step: Document key processes, create training manuals, and establish standard operating procedures (SOPs) across departments.

5. Build a Strong Management Team
A capable leadership team that can run the business in your absence adds significant value. It shows potential buyers that the business can thrive post-transition.
Action Step: Identify, train, and retain key personnel. Consider offering performance incentives or equity to keep them motivated and committed.

6. Diversify Your Customer Base
Over-reliance on a few clients can be a red flag. Buyers worry about what might happen if a major customer leaves.
Action Step: Expand your marketing efforts to attract new clients, and create a strategy to nurture and retain existing ones.

7. Protect Intellectual Property and Brand Assets
Your brand, trademarks, patents, customer lists, and proprietary systems are valuable assets. Protecting them can significantly increase your company’s appeal and value.
Action Step: Conduct an intellectual property audit and ensure all legal protections are in place.

8. Reduce Owner Dependency
If your name, face, or personal relationships are central to the business, it may be harder to sell. Buyers want a business, not a job.
Action Step: Gradually delegate responsibilities, and shift key relationships to other team members.

9. Address Legal and Compliance Issues
Unresolved legal issues or outdated licenses can derail a deal. Make sure your business is in full compliance.
Action Step: Review contracts, employee agreements, and regulatory filings with a legal advisor to ensure everything is current and enforceable.

10. Increase Recurring Revenue
Predictable, recurring income streams are incredibly attractive. They reduce risk and provide buyers with future cash flow certainty.
Action Step: Introduce or expand subscription models, service contracts, or maintenance agreements where possible.

Final Thought
Enhancing the value of your business before retirement isn’t just about a higher sale price—it’s about creating a legacy, protecting your life’s work, and setting up the next chapter for success. With careful planning and focused improvements, you can exit confidently and profitably, knowing you’ve set your business—and yourself—up for a bright future.

Tax Credit Opportunities

April 13, 2025 by Admin

Auditor or internal revenue service staff, Business women checking annual financial statements of company. Audit Concept.

Tax deductions aren’t the only things to consider when looking for ways to reduce your tax bill. There are a number of tax credits that you may be able to claim. A tax credit reduces your tax liability dollar for dollar (and, in some instances, may be fully or partially “refundable” to the extent of any excess credit).

Child-Related Credits
In 2025, parents of children under age 17 may claim a child tax credit of up to $2,000 per qualified child. The child tax credit is phased out for higher income taxpayers. A different credit of up to $17,280 (for 2025) is available for the payment of qualified adoption expenses, such as adoption fees, attorney fees, and court costs. The credit is phased out at certain income levels, and there are certain restrictions as to the tax year in which the credit is available. Look into claiming the child and dependent care credit if you pay for the care of a child under age 13 while you work. It’s available for a percentage of up to $3,000 of qualifying expenses ($6,000 for two or more dependents) in 2025. This credit isn’t confined to child care expenses — it may also be applicable for the care of a disabled spouse or another adult dependent.

Higher Education Credits
The American Opportunity credit can be as much as $2,500 annually (per student) for the payment of tuition and related expenses for the first four years of college. A different credit — known as the Lifetime Learning credit — is available for undergraduate or graduate tuition and for job training courses (maximum credit of $2,000 per tax return). You’re not allowed to claim both credits for the same student’s expenses, and both credits are subject to income-based phaseouts and other requirements.

Sometimes Overlooked
One credit that taxpayers sometimes miss is the credit for excess Social Security tax withheld. If you work for two or more employers and your combined wages total more than the Social Security taxable wage base ($176,100 in 2025), too much Social Security tax will be withheld from your pay. You can claim the excess as a credit against your income tax. The alternative minimum tax (AMT) credit is another credit that’s easy to overlook. If you paid the AMT last year, you may be able to take a credit for at least some of the AMT you paid. The credit is available only for AMT paid with respect to certain “deferral preference” items, such as the adjustment required when incentive stock options are exercised.

5 Time-Saving Tax Tips to Simplify Your Filing

February 14, 2025 by Admin

Tax season can be stressful, especially for small business owners and individuals who manage their own finances. The good news? There are several tax shortcuts that can save you time, effort, and even money. By simplifying your approach to tax preparation, you can file more efficiently while ensuring you maximize your deductions. Here are five great tax shortcuts to make the process easier.

1. Use Tax Software for Automation

One of the easiest ways to simplify your taxes is by using reputable tax software. Programs like TurboTax, H&R Block, and TaxAct automate much of the tax preparation process. These platforms guide you step-by-step, ensuring you don’t miss deductions or credits. They also automatically calculate your tax liability, minimizing the risk of human error.

The real bonus? Many tax software programs allow you to directly e-file your return, saving you the hassle of mailing forms and reducing the time it takes to process your return.

2. Take the Standard Deduction

Instead of itemizing deductions, which requires tracking and calculating a variety of expenses (like medical bills, mortgage interest, and charitable donations), you can take the standard deduction. The standard deduction is a flat amount the IRS allows you to deduct from your taxable income—no need to gather receipts or track every dollar.

For many people, the standard deduction offers significant savings without the extra work. In 2023, the standard deduction is $13,850 for single filers and $27,700 for married couples filing jointly, but this amount changes yearly, so be sure to check the latest numbers.

3. Set Up Direct Deposit for Faster Refunds

If you’re expecting a tax refund, setting up direct deposit can significantly reduce the time you’ll wait to receive your money. When you file your return, simply provide your bank account information, and the IRS will deposit your refund directly into your account, often in less than 21 days.

Direct deposit is faster and more secure than waiting for a check in the mail, and most tax software will prompt you to set this up as part of the e-filing process.

4. Use the IRS Mileage Rate for Business Deductions

Tracking every business-related car expense—like gas, repairs, and insurance—can be time-consuming. Instead, take advantage of the IRS standard mileage rate for business use of your vehicle. For 2023, the rate is 65.5 cents per mile.

Simply keep a log of your business mileage, multiply it by the standard rate, and you can deduct that amount from your taxable income. It’s a simple and straightforward shortcut that can save you both time and paperwork.

5. Leverage Tax Extensions When Needed

If you’re running short on time to gather all your financial documents, filing for a tax extension is a smart move. The IRS offers an automatic six-month extension (until October 15 for most filers) as long as you file Form 4868 before the April deadline. While this doesn’t extend the time you have to pay your taxes, it gives you extra breathing room to finalize your return and avoid the rush.

Remember, paying what you owe by the original deadline is crucial to avoid penalties, but the extension can help you avoid mistakes or missing out on key deductions due to rushing.

Tax preparation doesn’t have to be overwhelming. By using automation tools, opting for the standard deduction, and simplifying how you track expenses, you can cut down the time and effort needed to file your taxes. Don’t forget to use shortcuts like direct deposit for faster refunds and extensions when needed to reduce stress. These simple strategies can help you streamline your tax process and focus more on the important parts of your financial planning.