What is QuickBooks Online?

QuickBooks Online (QBO) is a digital accounting and bookkeeping software developed by Intuit. Highly regarded in the field, QuickBooks provides a simple, easy to use interface for recording all of your financial transactions. There are several versions of the software available, depending on the complexity of your business.


While not all of our clients use QuickBooks Online, the vast majority do, and we highly recommend this software for small and medium businesses, as well as for non profit organizations. Not only is QuickBooks excellent software, but it also integrates with other widely-used accounting applications such as Bill.com, Expensify, Tallie, TSheets, and many others. Given its versatility, we believe it is a great way to go to get the bookkeeping and accounting set up you need.

How difficult is it to convert my bookkeeping system from QuickBooks Desktop to QuickBooks Online?

We regularly manage the conversion of bookkeeping systems from QuickBooks Desktop to QuickBooks Online. Done correctly, your Chart of Accounts will be replicated, and all of your historic data will migrate to the new QuickBooks Online platform, allowing you to generate financial reports and statements including all of your past activities.


The entire conversion process takes about 2 days, the time needed to run checks across all accounts to ensure full data migration. It’s best to time the conversion with a period when you can put bookkeeping on hold for 2 days, typically after the monthly close, and when customer invoicing can wait.

Why do you recommend the cloud-based version of QuickBooks over the desktop version?

Converting to a cloud-based accounting software allows you to access your accounting file easily, wherever you have internet access, and allows you to better control access to your accounting file by others. QuickBooks Online provides for far more, and better integrations with external accounts, such as bank and credit card accounts, merchant services accounts. It also allows you to build out an accounting stack using other useful accounting applications such as bill.com, Tallie, or Expensify to better serve your organization’s overall financial data recording and tracking needs.

Will I have access to my financial records when I work with Profit Line? What permissions do I have in the bookkeeping process?

Yes, of course! When you engage Profit Line as your bookkeeping partner, you do not lose any control over your books. Using QuickBooks Online, you’ll have access to all of your records as the primary administrator, while your Profit Line accountants will be assigned a designated accountant function. We are acting behind the scenes doing all of the heavy lifting on a daily basis so that your records are in order, but you still get to view transactions, and pull reports as needed on your end. Access to, and ownership of, your financial records first and foremost belongs to you. We just take care of the recordkeeping so you can focus on your larger objectives.

Will you help me manage my customer invoicing process? Will you help me manage my customer invoicing process?

Yes! Invoicing is a crucial part of the Accounts Receivable Management process – it is where it all begins!. Customer Invoices are the documents in the sales cycle that bills customers for their purchases and confirms price, payment terms, and payment due date. At Profit Line, we have a team that is well trained in the practice of Customer Invoicing. No matter your invoicing needs – whether they are simple or quite complex – we can handle it all! Please see our Customer Invoicing section for a full description of our Invoicing service.

Can you manage my billable expenses?

Many businesses deal with billable expenses. In many cases, these need to be charged back to the customer, so they need to find their way to the invoice of the relevant customers. Rather than a regular bill or expense that is incurred for the business itself, a billable expense is incurred on behalf of a customer and is associated with the products or services provided to them. Examples of billable expenses could include travel expenses such as airfare, uber, or taxi costs. These may be passed on to the customer either at cost, or with a markup, depending on the terms of the engagement. Such billable expenses must be recorded correctly, and attributed to the appropriate customer. Then, once it comes time to invoice, we easily add them to the sales invoice, adding markups where necessary. This way, not only are invoices easily prepared, but your billable expenses are also linked to your invoices in your bookkeeping system, keeping your books nice and tidy.


In addition, if you use bill payment software like Bill.com to manage incoming vendor bills, we ensure that billable expenses are tagged correctly as soon as they come in, so this information feeds back correctly to your bookkeeping system when Bill.com is synced to QuickBooks. In your bookkeeping system, the bill can then be easily added to the customer’s invoice when you’re ready.

Can you ensure my invoices reflect the payment terms I have with customers?

Yes! We know just how important it is to establish payment terms with your customers to maintain a healthy cash flow. Our trusted accounting team will work with you to understand and develop payment terms that make sense for you. Will payment be due on receipt? Do you provide a sales discount for early payment? Are your goods sold on consignment? No matter your situation, we will ensure your invoices are set up to accurately reflect the payment terms you’ve agreed with your customer, and to provide for follow up if payment is not received on these terms.


If you are unfamiliar with the ins and outs of payment terms – have no fear! We will work with you to establish invoicing and payment terms that work for you and your business.

Can Profit Line make sure my invoices stand out and are representative of my brand?

We know how hard you work to build and protect your brand, so we take steps to ensure your invoices capture the look and feel of your business. Our team will work with you to create customized invoice templates that show off your style, fit your unique needs, and are easily identifiable with your brand. By adding logos, adopting personalized color schemes, and tailoring invoice content to include only what you need, we make sure your customers know exactly who the invoice is from, what is being charged, and, most importantly, when they need to pay.


If you are using QuickBooks, there is a selection of customization options you can choose from when designing your invoices. For some of our clients, these options are not robust enough to capture the look and feel of their business, so they turn to other applications to generate invoice designs they love and even to manage Accounts Receivable in some cases. In this instance, we will take care of syncing information stored in external applications back to QuickBooks so your books are always up to date. Whichever path you choose, you can rest assured that your invoicing will be taken care of.

I need to charge my customers sales tax - how is this incorporated in invoicing?

Do you find sales tax to be a headache? You’re not alone! All of the different sales tax rules and rates can get a bit confusing at times – but don’t worry, we’ve got you covered! We can set up your invoicing so that sales taxes are calculated automatically, depending on the type of service or product you are invoicing, and where it is being delivered. This sales tax data is then captured on your books, for periodic payment to the relevant State authority. When it comes time to make your State sales tax payments, you have that information already on hand, saving you the time and trouble of calculating it yourself. You’ll submit payment for only the amount you owe, when you owe it. Who knew taxes could be such a snap?


See our Sales Tax Management page for more information on how Profit Line takes care of your sales tax liabilities for you.

Is there an easy way to invoice for the time my employees spend on customer work?

Yes! By correctly integrating time tracking software such as TSheets with your accounting file, the time your employees log for specific jobs can be pushed over to your accounting file and added to invoices for the appropriate customers. This is just one way we get your accounting and business software to work for you – see our Accounting Stack Optimization page for more information on how The Profit Line integrates your various business platforms into one seamless accounting and bookkeeping system.

Will you help me manage my payment processing?

Yes! Payment processing is a central part of Accounts Payable Management, and something we love streamlining. At Profit Line, our staff has extensive experience with, and knowledge of, payment processing. We work with a wide range of businesses to manage their unique payment schedules and utilize various bill payment and expense management platforms to ensure bills are paid on time and are accurately recorded in your accounting system.


For some of our customers, managing their bills through QuickBooks and their bank and credit card accounts is sufficient. For others, it is helpful to integrate expense and payment processing software into their accounting system to make payment processing more efficient, and help the business run more smoothly. We often recommend bill.com to our customers because it’s a great application for tracking and processing payments, is low-cost, user friendly, and integrates well with most accounting software, such as QuickBooks Online.


We also have ample experience with payment channels such as PayPal, Square, Stripe, and Amazon Payments, and know well how to optimize the integration of the payment data with the accounting file. Whether you are accustomed to making payments through ACH, credit card, cash or checks, you can bet your Profit Line team will take care of all of your payment processing needs. You won’t need to worry tracking and paying expenses ever again!

I frequently need to reimburse my employees for business expenses - is this something Profit Line can assist with?

If reimbursements to employees is a regular part of your business operations, we’ve got you covered! We can design a simple expense reimbursement process for you, or get you set up on one of the great applications designed specifically for managing business expense reimbursements, such as Tallie or Expensify.

Can you track my expenses to my different business projects?

Yes. Leveraging QuickBooks software, our team is able to not only manage, track and pay your expenses, but also tag expenses to the specific projects they belong to. Whether you like to analyze business operations by project, customer, class, or any combination of the three, we will make sure your expenses are identified the right way.


Such project related expense coding is incredibly important for smooth and effective business operations. Not only does categorizing expenses in this way mean your financial records are organized and fully accounted for, but it also helps you assess the profitability of each project and customer so you know which opportunities are best for your business and where you might have lost money. This is the beauty of accounting done right – it keeps your records in line, thus enabling you to glean important insights that will lead you to make smarter business decisions.

What types of payroll processing platforms are available to choose from?

Broadly speaking, there are two main categories of payroll processors: Payroll Service Providers, or PSPs, and Professional Employer Organizations, or PEOs, but there are also hybrid service providers.


With PSPs, your business remains the employer of record, while with PEOs, the PEO becomes the employer of record and you enter into a co-employment arrangement with them. While payroll, employee benefits and workers’ compensation insurance can be managed on both types of platforms, with a PEO, you must use their choice of benefits and insurance, rather than selecting your own. Also, with a PEO, you may be subject to the PEO’s state unemployment tax rate, which may be higher or lower than your own.


Some examples of PSPs are ADP, Gusto, Paychex and Starpay. Examples of PEOs include ADP Total Source, Paychex PEO, Justworks, Trinet, Insperity and Extensis.


Costs for PSPs and PEOs can vary based on the plans you choose. At Profit Line, we have clients that use a variety of PSPs and PEOs depending on their needs. We are experienced with the use of and differences between these providers and will help you make a selection that makes the most sense from both a cost and business perspective.

Will you work with my tax accountant to make sure they have all the correct information?

Most definitely! At Profit Line, our team is staffed with expert accountants, and although we don’t provide tax accounting – i.e. the preparation and filing of income tax returns, we work very closely with our customers’ tax accountants to make this as efficient as possible. We have a strong working knowledge of many of the income tax requirements for small businesses and non-profit organizations and we keep these requirements top of mind as we manage your books throughout the year.


Then, when it comes time for your returns to be filed, we work with your tax accountant to make sure they have the relevant information needed to accurately complete your tax returns, highlighting key information or transactions that occurred during the year or might have changed from years prior. As your tax accountant needs additional supporting documents, we are there to provide them. We aim to take care of as much of the communication with your tax accountant as possible so that you can focus on your business.

Can Profit Line make my quarterly Federal, State and Local income tax payments?

Yes! Every quarter, most businesses are required to make quarterly income tax payments to the federal, state and local tax authorities. These payments must be made in a timely fashion, and there are penalties for failing to make them, or falling short on quarterly payments. The amount of these quarterly payments are determined by estimating your total annual tax liability, based on the net income in the prior year as well as net income expectations for the current year. These estimates are typically provided by your tax accountant, and can be revised if net income expectations for the current year change.


Once your quarterly estimated payments have been determined, your Profit Line team will take care of remitting these payments to the respective tax authorities – city, state, and federal. Your payments will be made on time so you need never worry about forgetting to make a payment or incurring late payment penalties ever again.

Can Profit Line help me set up sales tax accounts in different States?

Many of our customers sell taxable products and services into several States, and we’re very familiar with the account registration process, as well as with navigating the different State platforms for sales tax management and payment.

Sales taxes become due to the relevant State agency when products are delivered. Sales taxes collected by you before the products are delivered must be accounted for on your books and paid to the State agency at the next required payment date after the products have been delivered.

What payments made to vendors and independent contractors are eligible for 1099 reporting?

Generally speaking, any payments made to vendors or independent contractors for services rendered totalling $600 or more in the calendar year must be reported on Form 1099. That said, there are a few exceptions to this. First, services performed by corporations – either C Corps or S Corps – and LLCs that are taxed as either a C Corp or S Corp, are not required to be reported. Payments made to tax-exempt entities and to real estate agents or property managers for rent are also exempt. However, payments for attorney fees, regardless of the business form of the entity providing legal services, are required to be reported. It’s worth noting that any payments made to vendors or contractors via credit card or other third-party payment network are the responsibility of the credit card company and third-party payment network to report.

What is the difference between an audit and a review?

While an audit and review both serve to examine an entity’s financial statements, there are considerable differences between the two services. An audit provides the highest level of assurance, using a standard of reasonable assurance, that financial statements are free from material misstatement and present fairly based on generally accepted accounting principles. At the end of the audit, an opinion is provided as to whether or not the financial statements present fairly. A review, on the other hand, provides only limited assurance as to whether there need to be any material modifications to the financial statements of a company. Where an audit makes use of inquiry, analytical procedures and substantive procedures, a review uses only inquiry and analytical procedures. Given that a review is substantially less in scope than an audit, auditors may not provide an opinion on the financial statements when performing this type of engagement.

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