Using Children and Family for Maximum Tax and Economic Benefit

Basic Year End Tax Saving Strategies

We Now Offer Mortgage Loan Services

Don’t Neglect College Planning During Downturn

Prepare in Advance for a Smooth Refinance

Financial Planning for your Mortgage

2002 TAX CALENDAR

JANUARY 15, 2002

Estimated Tax - Final installment of 2000 estimated tax by individuals, trusts and estates and certain residuary trusts in existence more than two years.

JANUARY 31, 2002

Employers' Taxes - Employers must file returns for employees' withheld income and FICA taxes (Form 941) in last quarter of 2001 and for FUTA taxes for 2001 (Form 940).

Withholding - Employees' statements (W-2 and 1099-R) for amounts withheld in 2001 to be furnished by employer to employees.

Information Returns - Annual 1099-Series returns must be furnished to recipients. These recipients may include independent contractors, recipients of dividends, broker and barter exchange transactions, proceeds from real estate transactions, certain government transactions, royalty payments, prizes and awards, and rents or other business payments.

FEBRUARY 15, 2002

Individuals - Last day for filing Form W-4 by employees who wish to claim exemption from withholding of income tax for 2001.

FEBRUARY 28, 2002

Information Returns - Annual 1099-Series returns must be filed with the Internal Revenue Service (IRS) to report payments to recipients who received Form 1099 on January 31, as indicated above.

Withholding - Form W-2 must be filed with the Social Security Administration, the IRS and the FTB.

MARCH 15, 2002

Corporations - Due date of 2001 income tax returns for calendar-year U.S. corporations. Fiscal-year U.S. corporations and foreign corporations with an U.S. office must file by the 15th day of the 3rd month following the close of the tax year.

Due date of 2001 income tax returns for calendar-year S corporations.

Last date for filing application by calendar-year corporations for automatic six-month extension to file 2002 income tax return.

Last date for a calendar-year corporation to file an amended income tax return for the calendar year 1998.

APRIL 16, 2002

Individuals - Income tax and self-employment tax returns of individuals for calendar year 2001 and income tax returns of calendar-year decedents who died in 2001.

Last day for calendar-year individuals to file application for automatic four-month extension to file 2001 income tax return.

Last day for individuals to file amended income tax returns for the calendar year 1998.

Payment of first installment of 2002 estimated income taxes by calendar-year individuals.

Trusts & Estates - Trusts (and calendar-year estates and certain residuary trusts in existence more than two years) must make first payment of estimated taxes for 2002.

Fiduciary income tax return for calendar-year 2000. Fiscal-year estates must file by the 15th day of the 4th month following close of the tax year.

Last day for trusts to file application for automatic three-month extension of time to file 2001 income tax return.

Last day for estates and trusts to file amended tax returns for calendar year 1998.

Partnerships - Last day for filing income tax return for calendar-year 2001.

Last day for calendar-year U.S. partnerships to file application for automatic three-month extension to file 2001 income tax return.

Last day for calendar-year partnership to file an amended return for 1998.

April 30, 2002

Employers' Taxes - Employers of nonagricultural and non household employees must file return to report income tax withholding and FICA and FUTA taxes for the first quarter of 2001.

MAY 15, 2002

Exempt Organizations - Annual information return for 2001 by calendar-year organizations exempt or claiming exemption from tax. Fiscal-year organizations must file by the 15th day of 5th month after close of the tax year.

MAY 31, 2002

Information Returns - Annual statement to IRS regarding 2001 account balances for an Individual Retirement Account (IRA) or Simplified Employee Pension (SEP). Participants and IRS must be provided with IRA plan contribution information.

JUNE 15, 2002

Estimated Tax - Calendar-year corporations must pay second installment of 2002 estimated tax.

Payment of second installment of 2002 estimated tax by individuals (other than farmers and fishermen), by trusts and by estates and certain residuary trusts in existence more than 2 years.

JULY 16, 2002

Trusts - Last day for filing 2001 form for trusts that obtained an automatic three-month filing extension.

Partnerships - Last day for filing 2001 form for partnerships that obtained an automatic three-month filing extension.

JULY 31, 2002

Employers' Taxes - Employers of nonagricultural and nonhousehold employees must file return to report income tax withholding and FICA and FUTA taxes for the second quarter of 2002.

AUGUST 15, 2002

Individuals - Last day for filing 2001 income tax returns by calendar-year individuals who obtained automatic four-month filing extensions; or last day for individuals to file for application for additional two-month extension of 2001 income tax returns.

SEPTEMBER 17, 2002

Estimated Tax - Payment of third installment of 2001 estimated tax by calendar-year corporations.

Payment of third installment of 2002 estimated tax by individuals (other than farmers and fishermen), by trusts, estates and certain residuary trusts in existence more than 2 years.

Last day for filing 2001 income tax return by calendar-year corporations that obtained automatic six-month filing extension.

OCTOBER 15, 2002

Individuals - Last day for filing 2001 income tax returns by calendar-year individuals who obtained second filing extension.

OCTOBER 31, 2002

Employers' Taxes - Employers of nonagricultural and nonhousehold employees must file return to report income tax withholding and FICA taxes for the third quarter of 2002.

DECEMBER 17, 2002
Estimated Tax - Payment of last installment of 2002 estimated tax by calendar-year corporations.

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Rumor Mill Humming for South Carolina §529 Plan

Some of you have heard me criticize South Carolina for its puny prepaid tuition plan in the past. It generated nearly zero interest from the public due to the lack of investment options and other restrictions on benefits. Well, rumor has it that in March of 2002 our state will catch up and launch a college savings plan comparable to those of forty other states. The polar opposite of the prepaid tuition plan, the South Carolina §529 college savings plan will offer investment options administered like mutual funds by Bank of America (according to my sources). This gives the account owner some control, and some responsibility for investment performance and the ultimate value of the account.

Some other attractive features anticipated are:

• A deduction on your state tax return for contributions, including rollovers from other state’s plans (if you’ve already created a savings plan sponsored by another state, you can transfer the money to the SC plan AND deduct it!);
• A contribution limit of $250,000, even all in one year if you can (compare with $2,000 per year for an education IRA and this could be an advantage if private college is in your kids’ future);
• No “nonqualified distribution” penalty (though one maybe added later);
• Minors will also be allowed to contribute to their own savings plans;
• The ability to change beneficiaries if the initial beneficiary doesn’t go to college.

The legislation is still being drafted, but word on the street is that this is a done deal. Why, you may ask? The answer is MONEY. No state wants you to send your money to Rhode Island or Colorado (those states receive a share of the fees charged account owners by Fidelity, Salomon Smith Barney or whoever acts as plan administrators). So South Carolina will join the flock next year and soon I bet all fifty states will have their own savings plans.

IF your child is already near college age you may think these plans offer no opportunity for you, but you’d be wrong. While the ability to compound earnings tax-free for a long period won’t exist for your account, consider this example. If you contribute to a SC college savings plan in December 2002 (its first year) and your child enters college in early 2003, you can withdraw funds to pay tuition and other expenses in 2003, even though you took a deduction for those dollars on the 2002 SC taxreturn you file in early 2003. Sneaky but completely legal. For more information on this breaking story, giveus a call at 864.583.0802 or 888.969.0802.

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Adoption Credit and Exclusion Increased After 2001

The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGGTRRA for us acronym geeks) provides for the expansion of many long-standing tax preferences for families and children. One feature we haven’t talked about yet is an increase in the federal tax credit for adoption expenses.

Prior to 2002, individuals are allowed a nonrefundable credit of up to $5,000 of qualified adoption expenses for each eligible child ($6,000 for a special needs child). There is also an exclusion of similar amounts paid through a nondiscriminatory employer adoption assistance program. Many taxpayers failed to benefit from these provisions, however, because both the credit and the exclusion phase out ratably between $75,000 and $115,000 of Adjusted Gross Income (AGI).

Under the provisions of the 2001 Act, both the credit and the exclusion increase to $10,000 for each eligible child. The credit and the exclusion are both indexed for inflation after 2002. Possibly more important, however, is the increase in the phase-out range to between $150,000 and $190,000 of AGI. This change brings the benefits of the law within the grasp of a much larger group of taxpayers.

Effective for tax years after 2002, another special rule applies for special needs adoptions. The $10,000 adoption credit and the $10,000 exclusion will apply to eligible special needs children even if there were no qualified adoption expenses incurred by the taxpayer. For example, if your “qualified” expenses are only $4,000, you will still receive a $10,000 tax credit if you adopt a special needs child. This is a rare direct federal subsidy that may not be around for long, designed to encourage adoption.

Of course, the actual law is very complex and we have summarized its provisions here. For more information on the new adoption credit and exclusion, you can go to the IRS’ web site at www.irs.gov, then click on their “forms and publications” link and select PUBLICATION 968. Or you could give us a call andI’ll tell you about my oldest son, who is adopted.

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Using Children and Family for Maximum Tax and Economic Benefit

The government provides a behavioral incentive to have families with children through tax banefits. The only other behavior encouraged by our tax code is home ownership. Some of the many advantages afforded to families include the Child Tax Credit. The credit for children under age 17 is $600 per child for 2001 through 2004, with scheduled increases until it reaches $1,000 per child in 2010. The credit is phased out on the returns of single taxpayers with AGI (Adjusted Gross Income) above $75,000 and married couples with AGI above $110,000. A $5,000 Adoption Credit is available to couples that adopt a child, with an extra $1,000 credit granted if the child has special needs. This credit also begins to phase out for AGI’s above $75,000 and $115,000 You may also qualify for tax credit for costs of Child Care, if both spouses work. This credit is equal to 20% to 30% of the first $2,400 (or $4,800 if more than one child) of day-care, nursery school, summer camp and similar costs incurred so that both spouses can work. Costs eligible for the credit can’t exceed the earnings of the lower-earning spouse. Aside from these automatic provisions, there are several actions you can take to save on taxes if you have a family.

Income Shifting – A small amount can be saved annually on taxes by transferring assets to children, who typically are in a lower tax bracket. The first $750 of a child’s investment income is tax free, and the next $750 is taxed at 15%. This extra set of low brackets provides an incentive for parents to transfer enough assets to their children to save a few bucks in taxes by avoiding being taxed at the parents’ marginal rate. If the child is under 14 and investment income rises above $1,500, the so-called “kiddie-tax” applies, and the excess is taxed at the parents’ marginal (highest bracket) rate. Therefore you should consider shifting some of the child’s savings into tax-exempt securities such as municipal bonds until the child reaches 14 and the “kiddie tax” no longer applies.

Earned Income and IRA Strategies- If you own a business, consider hiring your children. Child labor laws do not apply when you are hiring immediate family, but make sure they actually perform some nominal duty to justify some wages. For example, 10-year-old Timmy could earn $50 a week for emptying the trash, filing or answering a phone part time. A child gets a standard deduction equal to earned income, up to a maximum of $4,550 in 2001. If you’re also willing to fund a $2,000 IRA for the child, he or she can then earn $6,550 and pay no tax. Your business, at the same time, gets a deduction for the $6,550 plus the payroll tax burden, perhaps $600. If your business is profitable, the income tax saved due to the payroll expense deduction is worth more than the payroll tax burden (matching FICA, etc.) your business will pay.

If you are a sole proprietor and you hire your spouse, the FICA tax you pay on the salary can be more than offset by the deductions and tax savings you could realize from various fringe benefit plans. You could create a SIMPLE IRA plan for employees, contribute up to $6,500 to it on behalf of yourself and $6,500 again on behalf of your spouse, and take a deduction at the business’ level for money you paid to yourself. You and your spouse, however, won’t pay tax on the contributions until withdrawn years from now.

Another benefit you can realize if you own your own business is a $5,250 exclusion for employer-provided educational aid for undergraduate courses. For example, your business can deduct the cost of the educational assistance as long as the same benefit is offered to all employees (a nondiscrimination rule). At the same time, your employee/child does not have to take the aid payments into his or her income, unless the aid payments exceed $5,250 annually. Because of the nondiscrimination requirement previously mentioned, this tactic is generally only used by small family businesses.

If you have a child going to college next year, and you face an evaluation of need for financial aid (which is mostly based on your tax return for the previous year) consider these tactics to maximize your potential aid: minimize or defer all income possible; fully fund your retirement options to reduce your income; accelerate any investment losses and postpone any gains; if possible, switch investments to hold down interest and dividend income. Potential alternate investments include unimproved real estate or certain life insurance products.

As always, the tips featured in this article are general in nature, and should not be acted upon without a detailed discussion of the minute vagaries and exceptions present in the tax law. If you are interested in any of the ideas in this article, please give us a call to discuss your individual situation

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Basic Year-End Tax Saving Strategies

Most of the changes to recent tax law improved tax benefits to families and retirement savings. The impact of the law changes will be nominal for 2001, with the bulk of the rate cuts and other benefits phasing in over several years. The benefit of the estate tax repeal, however, is both complex and tentative. The law gradually phases out the tax, then abolishes it completely in 2010, only to restore prior (pre-2001) law in 2011 unless Congress acts again to extend the repeal.

Given the silliness of Congress, and its failure to achieve its professed goals of simplicity and predictability, it may be smart to plan your taxes as you always have, not taking the longer-range provisions of the tax code for granted. To that end, here are some of our basic year-end tax tips, with some comments that apply for 2002, to help you focus your planning the next year or two.


The basic way to save on taxes is to shift income and deductions between two adjacent years, especially if your tax bracket will be higher in one of them.


• If you expect a year-end bonus or other large payday, ask your employer or the payor to pay it in January. High-bracket taxpayers should strive to convert as much of their current income into deferred compensation, fringe benefits or stock options. If you run your own business, delay income by sending out invoices in January instead of December.

• If you plan to marry someone with a similar income, consider delaying the wedding until 2002. You will be taxed less on two single returns than on a joint return, especially if your combined income will exceed $100,000. The opposite will hold true, however, if you have unequal incomes.

• Bunch expenses, such as medical expenses and other itemized deductions into the higher-bracket year. If you paid January’s property taxes in January 2001, you can “bunch”, or double up on your property tax deduction by paying next January’s property taxes in December 2001.

• If you make charitable contributions, consider making gifts of stock to your favorite charity. You can take a deduction for the fair market value of the stock while you pay no tax on the capital gain. If you itemize, pay in December any fourth quarter state estimated tax due in January. Also remember that ordinary charitable gifts are deductible in the year you mail the check, as is the interest expense on home mortgage payments (you can use an “early mailing” strategy to deduct thirteen months of home mortgage interest in one year).

• Contribute as much as you can to retirement plans. If you lower your adjusted gross income in this way, you also increase the amount of your allowable itemized deductions (because of the 7.5% floor on medical deductions and the 2% floor on miscellaneous itemized deductions).

• Attempt to delay the tax on investment gains by delaying the sale of appreciated assets until next year and/or by selling loss assets now to offset gains you take.

• Shift assets and their income to other family members with lower tax brackets. You can avoid gift tax by limiting gifts to $10,000 per donee per year ($20,000 if your spouse joins in).


As always, the tips featured in this article are general in nature, and should not be acted upon without a detailed discussion of the minute vagaries and exceptions present in the tax law. If you are interested in any of the ideas in this article, please give us a call or email at rayh@harrisandharris.net to discuss your individual situation.

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We Now Offer Mortgage Loan Services

Your business and your trust in us are always appreciated. We never forget that we make our living because of that trust. During the recent dramatic drop in interest rates, many of our clients have asked our advice about home mortgages, both for refinances and real estate acquisitions. Planning for mortgages has become more important for us all.

To add more value to our relationships with you, we are now affiliated with the Advisor Mortgage Network. This network is a membership organization with access to over thirty financial institutions. Membership in the network enables us to constantly monitor and select from dozens of offers for the lowest rates. Now, rather than dealing with a stranger, you can transact your mortgage with someone you trust. A home mortgage is perhaps the largest single financial transaction you will ever make. At no additional cost we can make sure the mortgage is tailored to your personal needs.

Our association with Advisor Mortgage Network will give you access to the most diverse menu of programs in the marketplace. From no-down payment to investor packages to buydown programs and construction loans, just tell us your situation and we can find the best product for you. Another convenient feature of the Advisor Mortgage Network is the option of going directly to our website at www.advisormortgagenetwork.com to apply online. The website is a secured site. If you designate us as your advisor when you apply at the website, we will follow up with you and no one else will have access to the information provided. Of course, you could still call us, and we can obtain all the information we need for an application.

We always appreciate the opportunity to be of service to you. We hope we can help you in the future if you are in the market to buy a house or refinance. We would of course also welcome any referral to friends or family with personal or commercial mortgage needs. For more information, please give us a call soon or email us at rayh@harrisandharris.net.

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Don’t Neglect College Planning During Downturn

While the stock market has tumbled, Americans’ savings rates are dismally low, and the economy is sagging, one thing is still up- college tuition. This makes it all the more important for parents not to lose sight of their savings goals for college. While the challenge to parents has never been greater, the government is trying to help us with new tax law. As is usually the case, the law is so complex that many people won’t take advantage of it. But new opportunities do exist, especially if your children aren’t already close to college age. A summary of the major new options follows, which may ease the confusion just a bit.

State Sponsored §529 Plans- although sponsored by states, you get tax free federal treatment for withdrawals from these accounts when used for qualified higher education expenses. Each state defines what qualified expenses are (i.e., some states include room and board while others do not). Starting in 2002 some states, including South Carolina, will be phasing in a current income tax deduction for contributions to 529 plans. Account Maximums can be as high as $250,000, and parents can switch beneficiaries if the initial beneficiary doesn’t go to college. On the downside, savings plans are limited to investment options offered by the sponsoring state, similar to a fund selection we’re accustomed to seeing in a company sponsored §401(k) plan. A new IRS rule allows parents to switch assets among investment options once a year. And of course there are penalties for not using the funds for college- the standard 10% plus income tax on the withdrawn earnings (but not the original contributions).

To learn more about §529 plans, including reviews of the state sponsored plans and links to other states and investment managers’ sites, click on the link on our homepage to SavingForCollege.com.

Education Savings Accounts (Sometimes called Education IRA’s)- These accounts have been around longer, but have largely been ignored because the contribution limit was a ridiculously low $500 per year. The Bush tax law increases the allowable deduction to $2,000 in 2002. The primary advantage over a section 529 plan is the ability to select any investment you like in the account, from stocks to bonds or anything in between. Also in 2002 certain elementary and secondary education costs (public or private) can be paid from account withdrawals. Its downside features include the chance that education IRA funds attributed to the child could disqualify you for financial aid. In addition, not all families are eligible- starting in 2002, couples with adjusted gross income greater than $220,000 on a joint return will not be allowed to contribute.

Custodial Accounts- Money from these accounts can be used for any purpose if your child doesn’t go to college. Until the child reaches adulthood, the parent transferring money to the child acts as custodian. One large drawback to custodial accounts is that children gain control of the funds when they reach age 18. The child could blow the cash on unwise things other than education. In addition, if the custodial account earns current interest or dividend income greater than $1,500, tax on the excess earnings is at the parents’ marginal rate. This so-called “kiddie tax” goes away when your child reaches age 14.

Of course, there are some tax laws you can exploit without opening complicated new investment plans that will help chip away at the cost of college. Interest on Series EE and Series I Savings Bonds will remain excludible from your taxable income if the proceeds are used for higher education purposes. And the Hope Credit (and Lifetime Learning Credit) provide direct tax savings for singles with AGI’s under $40,000 and married couples with AGI’s under $80,000 each year. To learn more about the many ways Uncle Sam wants to help with college, give us a call.

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Prepare in Advance for a Smooth Refinance

Mortgage rates are falling to their lowest levels since the 1960’s, and the rush is on in the mortgage industry to accommodate the largest refinancing demand in recent memory. Homeowners, understandably eager to slash their payments, are causing mortgage lenders and brokers some long hours handling a flood of applications. Because delays are likely to become commonplace in the months ahead, here are a few tips to streamline your experience.

You will save time and money if you assemble the bulk of your paperwork in advance, rather than waiting for a lender or broker to ask for it. Documents relevant to your application will probably include your current mortgage, a copy of a recent statement of your mortgage balance, a copy of your title, bank statements for the past several months, and tax returns for the past two or three years. Throw in all your recent pay stubs from your employer, and you could subtract weeks from the entire refinance process. As one mortgage broker puts it, the easy applications tend to get immediate attention. The less work a broker/lender has to do, the more likely the transaction will be completed quickly.

Another wise move is requesting your credit report in advance. This will give you the opportunity to correct errors or clear up forgotten problems prior to applying for mortgage financing. I recently requested my own report, and discovered a $76 cell phone bill that was on my record as a charge-off. A short letter accompanied by a copy of a cancelled check removed a blemish from my record that could have cost me several weeks in a refinancing scenario. When you refinance, your lender will conduct its own credit check, so you will end up paying twice for your credit report. But at $8-10 a pop its money well spent to know in advance what it says and avoid unpleasant surprises.

And finally, don’t pass up a good deal now in hopes that rates will fall more. Although many believe the Fed isn’t through cutting rates, the Fed Funds rate does not directly dictate home mortgage rates. In addition, mortgage lenders typically let consumers “lock in” an offered interest rate for 30 to 60 days. This will protect you if rates rise before you can close. Some lenders offer what is known as a “float-down,” which will allow your locked-in rate to fall if interest rates fall. Read the fine print, however, on any float-down offer. Some mortgage offers with this feature carry a higher interest rate than traditional loans, and some float-downs charge a fee of up o $300 to invoke the feature. Most consultants say that if a refinancing deal will significantly reduce your debt service, lock in the rate and forget it. Because during this barrage of refinance applications it is the only way to be sure your deal will still be there when you get to the closing table.

For more specific advice on refinancing, such as “breakeven analysis,” please give us a call or email us at rayh@harrisandharris.net.

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Financial Planning for your Mortgage

A few years back, Bank of America ran an ad which showed two pictures of the same house and asked: Which house costs $100,000 more?

Their answer obviously was that the house with a 30-year mortgage cost $100,000 more in interest than the house with a 15-year mortgage. That statement was true, but in order for it to be true the bank had to assume that the difference in payment between the 30-year and 15-year mortgage would be spent. In fact, the bank had to assume you were a total spend-thrift and would blow the entire difference and save none of it.

For years we all accepted their logic as absolute. But what if you could save and invest the additional cash flow from employing a longer-term mortgage? The answer is it all depends on your precise situation, and the bank example may be too simple for everyone.

I had a friend ask me this question in June (2001), and he gave me a set of circumstances for the sake of illustration. He would live in the house at least 15 years, but was thirty years from retirement. He was in the 28 percent bracket (for now), an aggressive investor demanding more than a risk-free rate of return (T-bills) and willing to accept some risk to get it. He said he could and would invest the difference in mortgage payments, and asked me, “how much could I accumulate in fifteen years if the investment earned X% every year and compounded? How much if the investment earned two percent less? How much if it earned two points more?” We played around with these questions and were impressed with the answers. No, we were surprised by the answer. We actually started to wonder if the bank had been insulting our intelligence. Look at this example:

My friend gets an $80,000 mortgage at 7%, even though he would have paid only 6.75% with the fifteen-year mortgage. My friend’s mortgage payment was $175 lower by virtue of using the 30-year mortgage. My friend created a Roth IRA and funded it with $2,000 annually, using automatic monthly bank drafts by Fidelity, a major mutual fund company that offered funds suitable for all levels of risk-tolerance. Some of the more aggressive Fidelity funds retuned more than 20% annually during the decade of the 90’s, but my friend asked me to assume rates of return of 7%, 9% and 11 % for our example.

At the end of fifteen years in our example, my friend will still owe $59,000 on his thirty-year mortgage. However, if his Roth IRA had earned 7% for the same period, its value would be $53,000. If the Roth IRA earned 9% for fifteen years, its value would be $63,000, and if it earned 11% over the fifteen- year period, its value would be $75,478! So my friend summed it up like this- “I can take the longer term mortgage, invest the difference in a Roth IRA and earn a nearly risk-free rate of return (at that moment T-Bills were earning 7%), at the end of fifteen years I’ll have enough to nearly pay off the remaining mortgage, even though I will have deducted an extra $59,000 in mortgage interest on my tax return in the meantime.” And the Roth IRA withdrawal would be tax-free even if he isn’t retirement age. If the Roth IRA earns more, you would be even further ahead, I told him. His next question (he knew the answer) was “what has the stock market returned in our lifetime? The answer depends on who you ask, and whose lifetime, but I told him that in the fifty-five years since they started monitoring the S&P 500, the index had returned between 12% an 13%. Well, my friend’s mind was made up.

Another point we need to make here is that the larger the mortgage you contemplate getting, the larger the spread between the 15 and 30-year payments, so you may very well have much more than $175 a month to invest. Something to think about.

It really comes down to proper financial planning. How long will you live in the house? How will you invest the money? When, if ever, will you need funds for college? Do you have a 401(k) plan? These and many other considerations will make a difference. We would love to talk about these questions with you. Please give us a call, or an email at rayh@harrisandharris.net.

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Dialing for Help

You may have seen the TV ads where the handsome blonde actor explains how very easy this new accounting software is. Yes, it is easy. And it will really help you control your business. A product like QuickBooks is your next stop if you want to keep moving into the future. These programs will simplify and speed up the work of your bookkeeper. You will be able to print checks and invoices from your computer. You will be able to keep track of your bills by due date and keep track of when your sales tax payments are due. You will be able to track the profitability of lines of products or individual jobs if you need to find out where your profit is coming from.

And, of course, there is a catch. If you not an accountant, these systems can be tricky to set up. We recommend these systems be installed by one of our qualified staff so that you will be assured of a proper beginning to your use of an accounting software package. Without this help at the beginning you may never see real numbers coming out of your program and the frustration can discourage you from using it at all.

You should also plan from the beginning to have one of our accountant member firms check your system periodically. In the future this will be something that increasingly can be handling over the telephone lines or even over the Internet.

But what if you have a problem? And there are always problems with any systems. Whatever computers do to streamline our office communications or increase our profits, there will always be problems. What do you do when you run into problems?

Call our Telephone Support Center, that's what. Do you want your bookkeeper coming to you with every problem entering data into QuickBooks or would you prefer that they call somewhere where they can get a quick and accurate answer. Most of the problems that you will be encountering with your Windows and QuickBooks system can be easily handled by our local Telephone Support Centers. Many of these questions will be QuickBooks software accounting questions, which can be answered quickly and accurately by our trained telephone support personnel. So call us at 888-969-0802 and find out about telephone support contracts for QuickBooks software users.

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