Welcome
Vol 7 Issue 1

Its that time of year again!

A common question that is asked of us is ‘What do I need to do to end the year? Here we put together the short list of items.

Backup your database - Backups are your responsibility and you should already have a system of backing up your data and storing some (or all) of the backup copies offsite or in a place safe from fire damage.  We recommend that you backup your database at the end of the year, and keep that backup copy safely for 7 years (or as long as the IRS asks to keep tax return history).

Create a new payroll year - If you are using the Freight.Ware employee payroll system, it will tell you the current date is ‘outside the range of the current GL year’ when you run it for the first time in 2008. Follow these steps:

1. Enter the Freight.Ware payroll system
2. Click OK to continue
3. Click Cancel in the Select Year & Date window
4. Click on the Utilities tab
5. Click on the Create New Year option
6. Select 2008 in the first box
7. Select 2007 in the second box
8. Leave the Active Employees option marked unless you have an inactive employee who will return in the future, then mark All Employees
9. Click Create - OK - Done
10. Now select the Change Payroll Year/Date option
11. Select 2008 in the first box
12. Enter today’s date in the second box
13. Click OK

Now you are ready to do your first payroll of the new year. It’s not too late to get your W2 and 1099 forms orders in!

Enter your new 2008 tax tables - Each year, the Federal Tax Tables must be reset to withhold the new tax rates. These tax rates can easily be changed. Follow these steps:

1. Enter the Freight.Ware payroll system
2. Select the Taxes tab
3. Select the Employee Tax Tables option
4. At the top of the screen, at the Select Tax: prompt, select Federal Income Tax - Married
5. Change the Exemptions Amount to $3,500.00
6. Click on the Tax Tables tab
7. Change the table entries to make the screen look like this (Figure 1)

 
Figure 1

8. At the top of the screen, at the Select Tax: prompt, select Federal Income Tax - Single
9. Change the Exemptions Amount to $3,500.00
10. Click on the Tax Tables tab
11. Change the table entries to make the screen look like this (Figure 2)

Figure 2

12. At the top of the screen, at the Select Tax: prompt, select FICA Social Security
13. Click on the Tax Tables tab
14. Change the table entries to make the screen look like this (Figure 3)

Figure 3

15. Click Done
16. Select the Employers Liabilities option
17. At the top of the screen, at the Select Liabilities: prompt, select FICA Social Security
18. Change the table entries to make the screen look like this (Figure 4) (except for the Expense and Liability Accounts at bottom should not change from your current settings).

19. Click Done

Your payroll system is now reflecting the new 2008 federal tax rates. Has your state changed their payroll rates? Please contact us if your state or local tax rates have changed for 2008.

Create your Financial Periods - Freight.Ware needs to know  what your accounting periods are each year. For most of us, it is the same as the calendar year, January through December. Follow these steps:

1. Go into Freight.Ware and select the Accounting menu
2. Select Financial Periods
3. At the top of the screen, 2008 should be selected
4. If you do not have months defined under 2008, then
5. Click New Common Periods
6. Select ’12 Months’
7. Select ‘January’ (or whatever month your fiscal period begins with)
8. Click OK - OK

This will put your general ledger transactions into the periods that meet those date ranges.

Print your Collections Report - Your accountant will want to see the detail of your Accounts Receivable at the end of the year. Follow these steps:

1. From Freight.Ware, select the Reports menu
2. Select Customer Reports
3. Select Collections Report
4. Enter the last day of your fiscal year for the "as of" date. (eg. 12/31/07)
5. Click Print

This report will not include invoices or payments after 12/31/07. So it is ok to run this report after you have created new invoices or applied cash payments in 2008.

Print your  A/P Aging Report - Follow these steps:

1. From Freight.Ware, select the Reports menu
2. Select either Purchases or Suppliers (depending on your Freight.Ware product)
3. Select the A/P Aging report. Select the last day of your fiscal year for the "as of" date (eg. 12/31/07). Select "all suppliers" and "detail" for the other report parameters.
4. Click Print

Print your W2s - You’re done with 2007 payrolls, you have your 2007 W2 forms, now you’re ready. Follow these steps:

1. From Freight.Ware payroll, select the Tax Forms tab
2. Select Create W2s
3. Select 2007
4. Enter your State and local Tax ID numbers as you want it to appear on the W2s.
5. Click Prepare W2s - OK
6. Click Edit W2s - Review each W2 to be sure it is correct. To proof those numbers, you can run a variety of reports from the reports menu, to see the detail behind the pay amounts, withholding amounts, deduction amounts, etc., for each employee. Click Done back to the Tax Forms menu
7. Select Print Tax Forms/Reports
8. Since we can reprint the W2s as many times as we need to, let’s leave the printer loaded with blank paper and give this a trial run.
9. Select Print W2’s - Don’t bother to select a quarter at the top of this window, it won’t matter.
10. Leave the print option on the right set to Preview
11. Click Print
12. Hold one of the printed pages up over a blank W2 form and be sure the print is in alignment.

If everything checks out, click on the Print Tax Forms/Reports button from the Tax Forms menu and reprint the W2s on the preprinted forms.

Print your 1099s - 1099 amounts are accumulated during the year from entries that are made in the Purchases -> Enter and Pay Bills option in Freight.Ware. Each amount that is subject to appear on a 1099 should be highlighted in yellow on the right side of the screen. If they are not, you must unpost the bill (you might have to uncheck the Paid Payments checkbox), double click on the amount field for each line you want on the 1099, and then repost the bill (and recheck the Paid Payments checkbox if you unchecked it).

If you cut a manual check for a 1099 supplier, that amount will not appear in the 1099 processing screen.

1. From Freight.Ware, select the Accounting menu
2. Select the 1099 Processing option
3. 1099 Detail will show each invoice for each 1099 supplier
4. Verify those bills and amounts.
5. Click the 1099 Summary tab to view the summary totals for each supplier
6. Since we can reprint the 1099s as many times as we need to, let’s leave the printer loaded with blank paper and give this a trial run.
7. Select Preprinted Form
8. Check Copy A only and uncheck all of the other copies.
9. Click Print
10. Hold one of the printed pages up over a blank 1099 form to be sure the print is in alignment
11. If everything checks out, check the number of copies you will need, and reprint the 1099s with the preprinted forms loaded.

Now that you have your 1099s printed, let’s repeat the same trial run and print with only the 1096 box checked.

Close last Financial Period - If you have recently upgraded your version of Freight.Ware since October 1st, 2007, the last financial period closes just as any other.  It may be reopened and closed again at any time in the future.  We no longer roll up the details.

1. From Freight.Ware, select the Accounting menu
2. Select Financial Periods
3. Select 2007 at the top right corner of the screen
4. Click Close Period - This will only close the oldest open period so you if you haven’t been closing your financial periods each month, you will have to do this until the last period is closed.
7. Click OK - OK
 

If you have not upgraded since October 1st, 2006, then follow this procedure:

Closing the last fiscal financial period of 2007 is an irreversible process. So, as always, be sure you have a fresh backup of your system! Be sure you and your accountant have all of the information you need to file your 2007 returns. You can complete this step anytime during 2008 so there is no hurry to get this done. The only downside to this is that you will continue to view the 2007 GL transaction detail in your screens and reports, and that you can not close any of your 2008 GL periods.

Closing December not only flags your December period as being closed, but also adds up your revenues and expenses, and posts that net income result to your retained earnings account. Be sure you know what account that is before closing.

1. From Freight.Ware, select the Accounting menu
2. Select Financial Periods
3. Select 2007 at the top right corner of the screen
4. Click Close Period - This will only close the oldest open period so you if you haven’t been closing your financial periods each month, you will have to do this until December is the next period to be closed.
5. Click OK to agree this is the last period of the year
6. Select your Equity (or Retained Earnings) account
7. Click OK - OK
8. Click Yes to Archive the Closed Transactions - This is very important! We will take this prompt out in a future release and answer ‘Yes’ for you automatically.
9. Your 2007 GL transactions will be copied to another file

Payroll forms
IT'S TAX TIME AGAIN

Below is the pricing for the 2007 tax laser forms.

1099 Sets

Envelopes

Please e-mail your orders to info@artronix-solutions.com

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Vol 7 Issue 1