Recording Foreigh Transactions & Foreign Currency Conversion

Accounting for foreign transactions and foreign currency translation*

If your firm agrees to receive payment in a foreign currency, you record two transactions. 

Assume that your firm signs a sales contract with Toronto Co and will be paid $1,000 (Canadian) 30 days after it receives the merchandise. On the transaction (sales) date, the exchange rate is $1 (Canadian) = $1.15 (U.S.), so you record the following general journal entry: 

Accounts Receivable	1,150
Sales	1,150

To record foreign sales transaction (1,000 x $1.15) 

However, 30 days later the Canadian currency has weakened, and the exchange rate is now $1 (Canadian) = $1.10 (U.S.). That 1,000 Canadian dollars can purchase only 1,100 U.S. dollars, not the 1,150 U.S. dollars your firm budgeted to receive. Thus, your firm incurs a loss. On the settlement date, you must record two journal entries. 

Record the payment received and the $50 loss.

Position in Canadian Dollars	1,100
Loss on Exchange	50
Accounts Receivable	1,150

 Purchase U.S. dollars for the Canadian dollars your firm received.

Cash	1,100
Position in Canadian Dollars	1,100

Had the Canadian dollar strengthened after the settlement date, Toronto Co’s payment would purchase more U.S. dollars than you had budgeted for, resulting in a gain. You would then have recorded the following entries:  

Position in Canadian Dollars	1,250
Accounts Receivable	1,150
Gain on Exchange	100
Cash	1,250
Position in Canadian Dollars	1,250

*Excerpted from the AIPB newsletter; author - Dr. Suzanne N. Cory, Ph.D., Professor of Accounting, Bill Greehey School of Business, St. Mary’s University, San Antonio, TX.

QuickBooks 2010 Check Signing Feature

Print Signatures on Checks

Intuit Payroll has added a new check-signing feature in QuickBooks to make issuing checks more efficient. Instead of signing each check, you can now scan your signature once, save the image, and then use it in QuickBooks when you print checks on your pre-printed check stock.

The signature works for all check transaction types, including paychecks, liability checks, bill payment checks, sales tax payment checks, and standard banking checks. You can print your signature on both voucher checks (one to a page) and non-voucher checks (three to a page). Note: The signature will not work on wallet-sized checks.

Federal Reserve Bank Holiday Schedule

Holiday	2009	2010
New Year's Day	1-Jan	1-Jan
Martin Luther King, Jr. Day	19-Jan	18-Jan
Presidents' Day	16-Feb	15-Feb
Memorial Day	25-May	31-May
Independence Day	July 4*	5-Jul
Labor Day	7-Sep	6-Sep
Columbus Day	12-Oct	11-Oct
Veterans' Day	11-Nov	11-Nov
Thanksgiving Day	26-Nov	25-Nov
Christmas Day	25-Dec	25-Dec
*For holidays falling on Saturday, Federal Reserve Banks and Branches will be open the preceding Friday. For holidays falling on Sunday, all Federal Reserve Banks and Branches will be closed the following Monday. Expanded schedule can be found at: Federal Reserve System Holidays

QuickBooks Accountants Edition 2010

QuickBooks Accountant's Edition 2010 Coming Soon!

If you are an Accounting Professional, don't wait!
We're taking orders now for upcoming product release!
Call us today!

Save Even More Time with QuickBooks 2010

• Expanded Client Data Review.
• Document management.
• Adding or editing multiple list entries.
• Intuit Statement Writer.
• and many more.

Order your software today....call to order or for more information!

775-348-9200

jayne@quickbooksgal.com

Business Analys ES Discontinued 10.31.09

60 days advance notice of service discontinuation

If you have been using Intuit Business Analysis ES – a reporting service that is provided at no charge alongside your QuickBooks Enterprise Solutions software, you should be aware that there is an important change to this service effective soon:

Intuit Business Analysis ES will be discontinued on October 31, 2009

What do I need to do? You do not need to do anything at this time. Your QuickBooks software will continue to function as it had prior to using Business Analysis ES. However, please be aware that you will no longer be able to access Business Analysis ES after October 31, 2009. After October 31st, the synchronization process that enables you to view your QuickBooks data in Business Analysis ES may continue to run. If you would like to disable this synchronization (not required), follow these 3 easy steps: Step 1: Open the Intuit Sync Manager by double-clicking the icon with two green arrows located in your system tray. Step 2: Select "Disabled" from the drop-down menu next to each Company File you have synchronized with Business Analysis ES. Step 3: Click "Minimize to Tray" to exit the Intuit Sync Manager. That's it. Intuit will send you a reminder e-mail with these instructions in late October. What support is available between now and October 31st? Technical Support for Business Analysis ES will continue to be provided by Intuit until October 31, 2009. You can reach the support team between the hours of 7am-4pm Pacific Time, Monday through Friday. To contact Support, call 866-340-7237.

Banking Safety Tips

To protect yourself from crime:

• Park near the ATM/night depository.

• Have your bankcard ready before getting out of your car.

• When you are making a deposit, fill out the envelope before getting out of your car.

• Always turn your car off while you are at the ATM or night depository.

• Check your surroundings; do not attempt a transaction if you see anyone loitering near the ATM or night depository.

• When entering your identification code, shield the keyboard from anyone who may be in line behind you or observing from a distance.

• If you are in the middle of a transaction and become uncomfortable, press cancel, take your card and leave.

• Before leaving the ATM, make sure you have your card, receipt and cash.

• Do not count currency in view of others; pocket your cash and ATM card before leaving the ATM.

• Have your keys ready before you get to your car.

For drive-up ATMs:

• Drive close enough to the ATM so that you can reach the ATM through the window (and do not leave your car).

• Keep your doors locked, your car running and your windows not in use closed.

And, of course, report lost or stolen ATM cards or suspected misuse of a card to your bank immediately.

Top 10 Tips for Computer Security

I recently read these tips in a newsletter from Norton Internet Security folks....It certainly bears repeating. As the year comes to an end and we are doing our usual file maintenance, these are great tips to keep in mind.

10. Use common sense. It's always better to err on the side of safety. If you're unsure about an attachment, delete it. Especially if it's from a source you don't recognize. If there are tempting animations on a site that look highly unprofessional, don't download them.



9. Scan files for viruses before using them. This is always important, but especially if you are using a disc or flash memory to carry information between one computer and another. You could easily pick up a virus from a corrupted file and introduce it into your system. Running a virus scan before launching any of new files will prevent infection.



8. Don't share data CDs. Even a well-meaning friend may unknowingly pass along a virus, Trojan horse, or worm. Label your discs clearly so you know they're yours and don't loan them out. If a friend passes you a foreign disc, suggest an alternative method of file sharing.



7. Don't boot from an unknown data CD. Data CDs are one of the most common ways viruses are transmitted. If you are using a data CD while working on your computer, remove it when you shut the machine off or the computer may automatically try to boot from the disc, perhaps launching or installing bad programs or files on your computer.



6. Don't download programs from the Web. Unreliable sources such as Internet newsgroups or Web sites that you haven't heard of may be willing providers of viruses for your computer. Avoid downloading files you can't be sure are safe. This includes freeware, screensavers, games, and any other executable program—any files with an ".exe" or "".com" extension, such as "coolgame.exe." Check to see if the site has anti-virus software running on their side. If you do have to download from the Internet, be sure to scan each program before running it. Save all downloads to one folder, then run virus checks on everything in the folder before using it.



5. Update your anti-virus software frequently. An antivirus software program is only as good as the frequency with which it is updated. New viruses, worms, and Trojan horses are born daily, and variations of them can slip by software that is not current. Norton AntiVirus has a feature that searches for new virus definitions every time you go online, so you are always up to date.



4. Get immediate protection. Configure your antivirus software to boot automatically on start-up and run at all times. This will provide you back-up protection in case you forget to scan an attachment, or decide not to. And in case you forget to boot up your antivirus software, configuring it to start by itself will ensure you get immediate protection anyway.



3. Scan all incoming email attachments. Be sure to run each attachment you plan to open through the anti-virus check. Do this even if you recognize and trust the sender; malicious code, like Trojan horses, can slip into your system by appearing to be from a friendly source.



2. Don't automatically open attachments. Be sure your email program doesn't automatically download attachments. This will ensure that you can examine and scan attachments before they run. Refer to your email program's safety options or preferences menu for instructions.



1. Install reliable antivirus software. Antivirus software scans files regularly for unusual changes in file size, programs that match the software's database of known viruses, suspicious email attachments, and other warning signs. It's the most important step you can take towards keeping your computer clean of viruses. Norton AntiVirus is the world's leading antivirus software. It runs continuously in the background of your computer, providing constant protection from viruses, Trojan horses, worms, and other malicious code. To stay up-to-date on the latest online threats, Norton AntiVirus automatically updates its virus definitions whenever you're online.



Just in Case. . .
In case a virus finds its way to your computer, due to carelessness, an accident, or anti-virus software that hasn't been updated since you got it for your birthday last year, at least be prepared. Use PC backup software such as Norton Ghost to create a backup copy of your computer's hard drive. This way you can revert to the clean, undamaged version of your computer.

Handling Returned and Post Dated Checks

Returned checks

When the bank notifies you that it is returning a customer’s check for NSF (not sufficient funds), debit the customer’s account immediately—even if you plan to redeposit the check the same day.

For good internal controls, instruct your bank to address all returned checks to someone other than you—possibly the owner or a senior manager. This can protect you if an employee tries to use fictitious checks to cover temporary shortages.

Postdated checks

If a customer gives you postdated checks, treat them as a note receivable. In other words, debit it to Notes Receivable, not to Cash.

On the date written on the check, deposit it to your firm’s account, debiting Cash and crediting Notes Receivable.

New Printer? Change your QuickBooks Printer Settings

After you buy and install that new printer, don't forget to tell QuickBooks about it! You will want to be sure to change the printer to be used on each type of document your print: reports, checks, estimates, etc.

Attention QuickBooks Mac Users!

Are you planning to upgrade to the new Snow Leopard operationg system? If so, be aware that there are some compatability issues with QuickBooks

http://support.quickbooks.intuit.com/support/pages/knowledgebasearticle/qbmac_snowleopard

Intuit expects to release a patch, R8, ASAP to correct these issues. Until then, you might want to wait on the upgrade, or be prepared to work around the issues with QuickBooks.

New Computer? Don't have Payroll Subscription Number?

Recently a client called. Her computer had crashed and she bought a new one. Everything was fine until she sat down a few days later to process payroll.

Turns out, she had not written down her Payroll Subscription Number.

Ir that happens to you, you can call the folks at Intuit Payroll Services at
(800) 624-2106, Mon-Fri, 6 AM to 6 PM Pacific Time.

They will verify your QuickBooks software license and your payroll subscription status. Then they will give you the information you need to carry on.

Write down your license and payroll subscription information. But keep this information, just in case you forget or lose the info...