It is tax time again, and we often ask our clients to send us a copy of their QuickBooks file.  Some don't know how to accomplish this.  As a QuickBooks Pro Advisor, we thought we might share some steps to help.

There are 2 ways to effectlively transfer the QuickBooks (QB) data

1. Mail a back up *.qbb file if your tax preparer needs to view and modify your entries.
   
   
2. Mail a Portable File *.qbm file for the smallest file size results - better for emailing.

Here are the steps for each method - some version may vary slightly... if you have questions, don't hesitate to call us:

Option 1) Making a Backup (.qbb file) on your hard drive in using QuickBooks and sending the file via email:

• Make all entries in your QuickBooks company file for the tax year (for instance, 12/31/2011).
• Choose File > Create Copy > Back Up.
• Use "Local backup"
• Save Now
• Note the Location (I use the Desktop to easily move to step 2) and file name: YOURCOMPANY.qbb
• Choose OK/Save
• Backup may display, "Are you sure you want to back up your company data to your hard disk?"
• Because you will email the file, choose Yes.
• IMPORTANT: For regular backup, back up to removable media, such as CD-R or other disks and not your hard disk.
• Backup may display, "The backup file you chose already exists. Do you want to replace it?"
• Choose Yes if you want to replace the file.
• QuickBooks Information displays, "Your data has been backed up successfully."
• Choose OK to close QuickBooks Information.
• Start your email program.
• Create a new mail message to your tax preparer.
• Choose the option to attach a file. In some email programs you click a 'paper clip' icon.
• Select the folder and file in step (for example, drag the file right from your desktop to the email
• After you have attached the *.qbb file, type a message to your tax preparer asking for a response from him or her when the *.qbb is received.
• Choose Send.
• Close your email program.

Errors:
Some email systems have file size restrictions. If the .qbb is too large, you may not be able to send the backup file via email.

We utilize a secure portable to send the file here at DiSabatino, CPA... just request access!



OPTION 2) Making an Portable ( .qbm) file on your hard drive.  This is the best compression - smallest file for easier on-line and email transfers.

• Make all entries in your QuickBooks company file for the tax year (for instance, 12/31/2011).
• Choose File > Create Copy > Portable company file
• Use "Local backup"
• Save Now
• A message may explain the file already exists and ask if you want to replace it?
• Choose Yes if you want to replace the file. Skip to step 8.
• If you do not want to replace the file, choose No.
• QuickBooks Information displays, "A Portbable Copy transfer file has been successfully created."
• Choose OK to close QuickBooks Information.
• Start your email program.
• Create a new mail message to your tax preparer.
• Choose the option to attach a file. In some email programs you click a 'paper clip' icon.
• Select the folder and file created (in my example... the file placed on the desktop ending in .qbm).
• After you have attached the *.qbm file, type a message to your tax preparer asking for a response from him or her when the *.qbm is received.
• Choose Send.
• Close your email program.

The IRS has released the 2012 optional standard mileage rates that employees, self-employed individuals, and other taxpayers can use to compute deductible costs of operating automobiles (including vans, pickups and panel trucks) for business, medical, moving and charitable purposes.

The 2012 standard mileage rate remains at 55.5 cents per mile for business uses, is reduced to 23 cents per mile for medical and moving uses, and remains at 14 cents per mile for charitable uses. For purposes of computing the allowance under an FAVR plan, the standard automobile cost may not exceed $28,200 ($29,300 for trucks and vans).

The updated rates are effective for deductible transportation expenses paid or incurred on or after January 1, 2012, and for mileage allowances or reimbursements paid to, or transportation expenses paid or incurred by, an employee or a charitable volunteer on or after January 1, 2012.

New Sales and Use Tax Rate
Effective October 1, 2011
There is only one tax rate change effective October 1, 2011

Voters in the city of Mt. Shasta, located in Siskiyou County, California have approved a one-quarter percent (.25%) district tax, the Mt. Shasta Library Transactions and Use Tax, that is effective October 1, 2011.  The new rate applies only to transactions that occur within the city’s incorporated limits.

The table below summarizes the new sales and use tax rate.