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Catch a tax break for making energy-efficient home improvements this summer
Catch a tax break for making energy-efficient home improvements this summer 850 500 smolinlupinco

According to the National Weather Service, nearly 190 million Americans have been under a heat advisory this summer. These scorching months might have you thinking about ways to make your home more energy efficient so that you don’t pay utility prices that are just as high as the heat index.

If you do decide to make some upgrades, there’s a new tax break that could ease some of the financial burden of the process. The Inflation Reduction Act of 2022 is an enhanced residential energy tax credit that can be used to mitigate the costs of qualifying improvements.

Who’s eligible for the tax credit

By making eligible energy-efficient improvements to your home on or after January 1, 2023, you might qualify for a tax credit of up to $3,000, and you can claim this credit for any eligible improvements through 2032.

This tax credit equals 30% of specific qualified expenses for energy improvements to a home located in the United States, including:

  • Qualified energy-efficient improvements installed during the year
  • Residential “energy property” expenses
  • Home energy audits

Of course, there are limits on the allowable yearly credit and the amount of credit for specific expenses.

The maximum claimable credit available each year is:

  • $1,200 for energy property costs and specific energy-efficient home improvements, with limits on doors ($250 per door and $500 total), windows ($600 total), and home energy audits ($150)
  • $2,000 per year for qualified heat pumps, biomass stoves or biomass boilers

In addition to the credit for windows and doors, other energy property includes central air conditioners and hot water heaters.

Prior to the 2022 law, there was a lifetime credit limit of $500. Today, this credit has no lifetime dollar limit. You’re allowed to claim the maximum annual amount every year that you make qualifying improvements until 2033.

For instance, you can make a few improvements this year and take a $1,200 credit for 2023, and then make additional improvements the next year to claim a $1,200 credit for 2024.

It’s important to note that the credit is claimed in the year in which the installation is completed.

Additional limits and rules

Generally speaking, the credit is available for your primary residence, although some improvements on secondary residences may qualify. 

If a property is used exclusively for business, you’re not allowed to claim this credit. 

If your home is partially used for business, the amount of credit you can receive will vary. For business use maxing out at 20%, you can claim the full credit, but anything over 20% will get you a partial credit.

While the credit is available for specific water heating equipment, you can’t claim it for anything that’s used to heat a swimming pool or hot tub.

This credit is nonrefundable, which means you can’t get back more on the credit than you owe in taxes. Additionally, you can’t apply any excess credit to future tax years. However, there’s no phaseout based on your income level, so even high-income taxpayers can benefit from this credit.

Have questions? Smolin can help

If you have questions about making energy-efficient improvements or purchasing energy-saving property for your home, contact the knowledgeable professionals at Smolin. We’ll show you how to make the Inflation Reduction Act and other tax breaks work for you.

seniors deduct medicare premiums from taxes

With Accounts Receivable, Quality Matters
With Accounts Receivable, Quality Matters 1275 750 smolinlupinco

For plenty of companies, an important line item on the balance sheet is accounts receivable (AR). The question is, can you take the amount reported at face value, or is there more to it than meets the eye?

It’s critical to dig deeper into your numbers to understand the true quality of your AR. Your balances might include stale invoices, bad debts, or even fictitious entries.

Benchmarking receivables

A good place to start with evaluating the quality of receivables is the days sales outstanding (DSO) ratio. 

This number represents the average amount of days it takes you to collect payment after booking sales. Find it by dividing the average AR balance by your yearly sales and multiplying this number by 365 days.

Companies that are on the ball when it comes to managing receivables usually have lower DSO ratios than those that are a bit more lax about collections. Businesses with high DSO ratios may have accounts on the books that could be overdue by 31 to 90 days or even longer.

If a company has more than 20% of stale receivables, this could indicate less-than-stellar collection habits, a poor-quality customer base, or other troubling issues.

Your percentage of delinquent accounts is another important number, and you might decide to outsource these accounts to third-party collectors to do away with the troublesome process of wrangling overdue payments or threatening legal action just to collect the money you’re owed.

Diagnosing fraud symptoms

AR can also be a common place to hide fraud due to the high volume of transactions involved. Some warning signs of fraud to be on the lookout for in your receivables are:

  • Increases in stale receivables
  • A larger amount of write-offs compared to previous periods
  • An increase in receivables as a percentage of sales or total assets

Aside from creating false invoices or fictitious customers, a dishonest employee may engage in lapping scams. This is when a receivables clerk assigns payments to incorrect accounts to obfuscate systematic embezzlement.

In addition to creating phony invoices or customers, a dishonest worker may engage in lapping scams. This happens when a receivables clerk assigns payments to incorrect accounts to conceal systematic embezzlement.

Additionally, a fraudster may send out inflated invoices to customers and proceed to “skim” the difference after applying the correct amount to the customer’s account. Using multiple employees for invoicing and recording payments can reduce the likelihood of skimming (unless multiple employees work in concert to defraud the business).

Have questions? Smolin can help.

Like any valuable asset, accounts receivable needs to be managed and safeguarded. Evaluating receivables is standard procedure for auditors, and this process includes performing ratio analysis, sending confirmation letters, and reconciling customer receipts with bank deposits.If you have concerns about your AR trends, contact the professionals at Smolin. In addition to conducting surprise audits, our team can customize procedures engagements or forensic accounting investigations that will dig deeper into your books to ensure everything is above board.

How Catch-up Contributions to Your Retirement Account Can Make an Impact
How Catch-up Contributions to Your Retirement Account Can Make an Impact 1275 750 smolinlupinco

If you’re 50 or above, you can likely make extra “catch-up” contributions to your tax-favored retirement accounts. You might wonder if this is worth the trouble; the answer is “Yes!” 

Here are the ground rules for getting started with catch-up contributions.

The lowdown on IRAs 

Eligible taxpayers can make extra catch-up contributions of up to $1,000 every year to a traditional or Roth IRA. If, by December 31, 2023, you’re over 50 years of age, you can make a catch-up contribution for the 2023 tax year by April 15, 2024.

Additional deductible contributions to a traditional IRA can create tax savings, but your deduction may be limited if you or your spouse are covered by a retirement plan at your place of business and your annual income exceeds specific levels.

These additional contributions to Roth IRAs won’t create any up-front tax savings, but you can make federal-income-tax-free withdrawals once you’re older than 59½. There are also some income limitations on Roth contributions.

Individuals with higher incomes can make additional nondeductible traditional IRA contributions and benefit from the tax-deferred earnings advantage.

How company plans measure up

You must also be 50 or older to make extra salary-reduction catch-up contributions to your employer’s  401(k), 403(b), or 457 retirement plan, assuming these contributions are allowed and you signed up for them.

If this is the case, you’re permitted to make extra contributions of up to $7,500 to these accounts for the 2023 tax year. Check with your HR department to see how to get started with making additional contributions.

Salary-reduction contributions are subtracted from your taxable wages, so you’re essentially getting a federal income tax deduction. You can leverage the resulting tax savings to aid in paying for part of your catch-up contribution, or you can put these savings into a taxable retirement savings account to increase your retirement wealth in the future.

Run the numbers

Here’s an idea of just how much you can accumulate with catch-contributions.

IRAs 

Let’s imagine you’re 50, and you contribute an additional $1,000 catch-up to your IRA this year, and then you continue to do so for the next 15 years. This is how much extra you could have in your IRA by age 65. 

These estimates are rounded to the nearest $1,000.

4% Annual Return  6% Annual Return  8% Annual Return
$22,000 $26,000 $30,000

It’s essential to remember that making more significant deductible contributions to a traditional IRA can also reduce your tax bills. Making additional contributions to a Roth IRA will not give you this benefit, but you can withdraw more tax-free money later in life.

What about company plans?

Let’s say you’re turning 50 next year. If so, you can contribute an additional $7,500 to your company plan. If you do the same for the next 15 years, here’s how much more you could have in your  401(k), 403(b), or 457 plan account.

These estimates are rounded to the nearest $1,000. 

4% Annual Return  6% Annual Return  8% Annual Return
$164,000 $193,000 $227,000

As with IRAs, making more significant contributions can also lower your tax bill.

Looking at both IRA and company plans

Lastly, let’s imagine you turn 50 next year. If you’re eligible, you contribute an additional $1,000 to your IRA for next year, and you make an additional $7,500 contribution to your company plan. 

After that, you continue to do the same thing for the next 15 years. Here’s how much extra you could have in both accounts after that time.

These estimates are rounded to the nearest $1,000. 

4% Annual Return  6% Annual Return  8% Annual Return
$186,000 $219,000 $257,000

Have questions? Smolin can help

Extra catch-up contributions can add up to some pretty big numbers by the time you retire. If your spouse can make them, too, you can potentially accumulate even more wealth for a comfortable retirement. 

If you’re curious to know more about catch-up contributions, contact the team at Smolin, and we’ll answer all your questions.

Are You Married and Not Earning Compensation? You May Be Able to Put Your Money in an IRA
Are You Married and Not Earning Compensation? You May Be Able to Put Your Money in an IRA 1275 750 smolinlupinco

For married couples, if one spouse is unemployed or busy with the daily grind of unpaid care and domestic work, it can be challenging to save as much as you need to enjoy a comfortable retirement. This can feel stressful, but you do have options.

Generally, an IRA (Individual Retirement Account) contribution is only allowed if a taxpayer earns monetary compensation, however, there is an exception for a “spousal” IRA. This exception allows contributions to be made for a spouse who stays at home to care for children and/or elderly relatives or who is out of work. 

This exception is applicable as long as the couple files a joint tax return.

In 2023, the amount that an eligible married couple can contribute to an IRA for their nonworking spouse is $6,500. This is the same limit that applies to the working spouse.

The benefits of an IRA

IRAs offer two crucial advantages for taxpayers who make contributions to them:

Contributions of up to $6,500 a year to a traditional IRA might be tax deductible, and the earnings on funds within the IRA aren’t taxed until the funds are withdrawn. 

Aside from this, you can make contributions to a Roth IRA. There’s no tax deduction for Roth IRA contributions, but if specific requirements are met, your future distributions are tax-free.

If the married couple has a combined earned income of at least $13,000, $6,500 can be paid into an IRA for each partner, creating a total of $13,000.

Contributions for both spouses can be made to either a regular IRA or a Roth IRA or split between them, as long as their combined contributions don’t go over the $13,000 limit.

Higher contribution if 50 or older

Additionally, taxpayers who are age 50 or older can make “catch-up” contributions to an IRA or Roth IRA amounting to $1,000. That means that, for 2023, a taxpayer and their spouse (who have both reached age 50 by the end of the year) can each make a deductible contribution to an IRA of up to $7,500, for a combined deductible limit of $15,000.

With that said, it’s important to note that there are some limitations.

For example, if in 2023 a working spouse is an active participant in one of many kinds of retirement plans, a deductible contribution of up to $6,500 (or $7,500 for a spouse who will be 50 by the end of the year) can be made to the IRA of the non-working spouse only if the couple’s AGI doesn’t exceed a specific threshold. This limit is phased out for AGI between $218,000 and $228,000.

Have questions? Smolin can help

If you’re unsure of how to approach setting up IRA contributions for your non-working spouse, or you need help planning your retirement, contact the professionals at Smolin, and we’ll walk you through this process.

What to Do When You’ve Been Asked to Serve as an Executor
What to Do When You’ve Been Asked to Serve as an Executor 1275 750 smolinlupinco

If a family member or friend has asked you to serve as executor of their estate, it’s critical that you understand the responsibilities and potential risks before you sign on. Note that you are not required to accept this appointment, but once you do, it can be difficult to extricate yourself if you change your mind.

With that in mind, it’s important to ask yourself the right questions before you accept the role.

Questions to ask before you become an executor

What’s your relationship to the person requesting you become their executor? 

If they’re a close family member, you may want to consider not accepting the appointment if you think your grief after their passing will make it difficult to effectively follow their instructions in your role as executor.

Are the duties of executor something you are willing and able to take on? 

Usually, an executor is responsible for: 

  • Handling probate
  • Identifying and taking custody of the deceased’s assets
  • Making investment decisions 
  • Filing tax returns 
  • Dealing with creditors’ claims
  • Paying the estate’s expenses
  • Distributing assets according to the will

While you can seek help from professionals such as attorneys, accountants, and investment managers, it’s still a labor-intensive process that may provide little or no compensation. 

Inquire about whether there’s an executor’s fee and whether the estate has set aside funds to pay for the services of professional advisors.

Does it make sense based on where you are located? 

If you’re living far away from the place where the beneficiaries and assets are located, your role as executor will be more difficult, expensive, and time-consuming.

What is your relationship with the beneficiaries like?

If your relationship with the beneficiaries is in any way troubled, accepting the appointment could put you in a difficult position, especially if you’re also a beneficiary and the other beneficiaries view your appointment as a conflict of interest.

Will your expenses be paid by the estate? 

Even if you receive no fee or commission for serving as executor, you need to ensure that the estate will pay or reimburse you for any out-of-pocket costs you incur while fulfilling the deceased’s wishes.

A final consideration is that some individuals appoint co-executors. For instance, they may choose one person who knows the family and understands its dynamics and an independent executor with the required expertise. 

It’s important to know if you’ll serve as executor solo or with a partner. Depending on the circumstances, having a co-executor may be a relief, or it may add more complications.

Let Smolin be your guide

If you’re unsure whether you want to agree to become an executor for a friend or family member, or you have questions about how this role could impact your life, contact Smolin, and we’ll help you determine whether this role is the right one for you.

2023 Q3 Tax Calendar: Key Deadlines for Businesses and Other Employers
2023 Q3 Tax Calendar: Key Deadlines for Businesses and Other Employers 1275 750 smolinlupinco

For business owners and other employers, it’s essential to keep up with important tax deadlines, even in the summer months. The following is a list of key tax-related deadlines for the third quarter of 2023. 

Deadlines

July 31st 

  • Report income tax withholdings and FICA taxes for the second quarter of 2023 using Form 941, and pay any taxes owed. (Refer to the exception below, under “August 10th.”)
  • Submit a 2022 calendar-year retirement plan report using Form 5500 or Form 5500-EZ, or request an extension.

August 10th 

  • Declare income tax withholdings and FICA taxes for the second quarter of 2023 using Form 941, if you deposited on time and in full all of the associated taxes owed.

September 15th

  • If a calendar-year C corporation, pay the third installment of your 2023 estimated income taxes.
  • If a calendar-year S corporation or partnership that filed an automatic six-month extension:
    • Submit a 2022 income tax return using Form 1120-S, Form 1065, or Form 1065-B, then pay any tax, interest, and penalties due.
    • Make contributions for 2022 to specific employer-sponsored retirement plans.

It’s important to note that this list isn’t all-inclusive, so there might be some additional deadlines that apply to your business. You’ll need to look into specific requirements to make sure you have everything you need.

Have questions? Smolin can help.

If you’re unsure about what third-quarter taxes your business needs to pay this summer, or you need some assistance filing with the IRS, contact the team of professionals at Smolin and we’ll work to ensure you’re meeting all the deadlines that apply to your business.

When can Seniors Deduct Medicare Premiums on their Tax Returns?
When can Seniors Deduct Medicare Premiums on their Tax Returns? 1275 750 smolinlupinco

If you’re over the age of 65 and you have basic Medicare insurance, you might be required to pay additional premiums to get the level of coverage you need. These premiums can be expensive, especially for married couples with both spouses paying them. With that said, you might have one advantage: You may qualify for a tax break for paying the premiums.

Premiums count as medical expenses

For the intention of claiming an itemized deduction for healthcare costs on your tax return, you have the option to combine premiums for Medicare health insurance with other eligible medical expenditures. These include:

  • Amounts for “Medigap” insurance 
  • Amounts for Medicare Advantage plans

Certain people purchase “Medigap” policies because Medicare Parts A and B don’t cover all their healthcare costs. Coverage gaps can include co-payments, coinsurance, deductibles, and other medical costs. Medigap is private supplementary insurance that is designed to cover a portion or the entirety of these gaps. 

You must itemize

It can be difficult to qualify for a medical expense deduction for a few different reasons. For 2023, you’re allowed to deduct medical expenses only if you itemize deductions and only to the extent that total qualifying expenses are higher than 7.5% of your adjusted gross income.

The Tax Cuts and Jobs Act almost doubled the standard deduction amounts for 2018 through 2025. For 2023, the standard deduction amounts are:

  • $13,850 for single filers
  • $27,700 for married couples filing jointly
  • $20,800 for heads of household.

For 2022, these amounts were $12,950, $25,900, and $19,400, respectively.

This means that many people claim the standard deduction because their itemized deductions are less than their standard deduction amount.

It’s important to note that self-employed individuals and shareholder-employees of S-Corporations can typically claim an above-the-line deduction for their healthcare coverage premiums, including Medicare premiums. Because of this, they don’t need to itemize to receive the tax savings from their premiums.

Other expenses that qualify

Alongside Medicare premiums, you can deduct various medical expenses, including: 

  • Dental treatments
  • Ambulance services 
  • Dentures
  • Eyeglasses and contacts
  • Hospital services
  • Lab tests
  • Qualified long-term care services
  • Prescription medicines

Along with these deductibles, there are plenty of other items not covered by Medicare that can be deducted for tax purposes if you’re eligible. 

You can deduct transportation costs from going to and from medical appointments. If you travel by car, you can deduct a flat rate of 22 cents per mile for 2023, or you can log all of your out-of-pocket costs for gas, oil, maintenance, and repairs.

Have questions? Smolin can help.

If you have any questions about what you can and can’t deduct for your Medicare premiums when tax season rolls around, contact the team at Smolin. We can answer any questions you may have about this process and help you make the best choice for your financial future.

Prepare for an Uncertain Federal Gift and Estate Tax Exemption Amount with a SLAT
Prepare for an Uncertain Federal Gift and Estate Tax Exemption Amount with a SLAT 1275 750 smolinlupinco

For 2023, the federal gift and estate tax exemption amount is set at $12.92 million (or $25.84 million for married couples). However, in the absence of action from Congress, on January 1, 2026, it’s scheduled to decrease to a mere $5 million ($10 million for married couples). 

According to current estimates, those numbers are expected to be adjusted for inflation to just over $6 million and $12 million, respectively.

If you anticipate the value of your estate will surpass estimated 2026 exemption thresholds, consider implementing planning techniques today that may assist in reducing or avoiding gift and estate tax liability in the future. 

One such planning technique is a spousal lifetime access trust (SLAT). In appropriate circumstances, a SLAT enables you to remove substantive wealth from your estate without incurring tax while also providing a safeguard if your circumstances change in the future.

SLAT fundamentals 

A SLAT is an irrevocable trust that permits the trustee to distribute funds to your spouse if a need arises during their lifetime. Usually, SLATs are designed to benefit your children or other beneficiaries while providing income to your spouse throughout their lifetime.

You can make completed gifts to the trust, thereby removing those assets from your estate. However, you can still maintain indirect access to the trust through your spouse if they are named a beneficiary of the trust. 

This is commonly achieved by appointing an independent trustee with complete discretion to distribute funds to your spouse.

Beware of potential complications

SLATs must be meticulously planned and drafted to avoid undesired consequences. For instance, to prevent the inclusion of trust assets in your spouse’s estate, your gifts to the trust must be made with your separate property. 

This may necessitate additional planning, particularly if you reside in a community property state. Additionally, after the trust is funded, it’s crucial to ensure that the trust assets aren’t commingled with community property or marital assets.

It’s essential to remember that the benefits of a SLAT rely on indirect access to the trust through your spouse, which means your marriage must be strong for this strategy to be successful.

There’s also a risk of losing the safety net a SLAT provides if your spouse passes away before you do. One way to mitigate this risk is to establish two SLATs: one created by you with your spouse as a beneficiary and one created by your spouse naming you as a beneficiary.

If both you and your spouse establish a SLAT, careful planning is required to avoid the reciprocal trust doctrine. Under this doctrine, if the IRS determines that the two trusts are interconnected and place you and your spouse in a similar economic position as if you had each created a trust for your individual benefit, it may invalidate the arrangement. To avoid this outcome, the terms of the trusts should be sufficiently varied.

Have questions? Smolin can help.

If you’re having issues wrapping your head around making a SLAT work for you or your spouse, contact the knowledgeable professionals at Smolin, and we’ll help you navigate this complex process.

Ease the Burden of Being a Member of the Sandwich Generation with these Action Steps
Ease the Burden of Being a Member of the Sandwich Generation with these Action Steps 1275 750 smolinlupinco

Are you raising children and supporting aging parents at the same time? If so, you can count yourself among those in the “Sandwich Generation,” a cohort “squeezed” by the demands of caring for children and older adults. 

While providing for your parents later in life may be gratifying, it can also be time-consuming. Deciding how best to handle the financial affairs of your parents as they age requires much thought.

You’ll need to incorporate their needs into your own estate plan. If necessary, you’ll also have to tweak some arrangements they’ve already made. Here are some essential steps you can take to manage your situation.

Identify key contacts

Just as you would do for yourself, you’ll need to collect the names and addresses of the professionals important to your parent’s medical and financial matters. Your list could include the following:

  • Stockbrokers 
  • Financial advisors
  • Attorneys
  • CPAs
  • Insurance agents
  • Physicians

List and value assets 

If you’re managing your parents’ financial matters, you’ll need an in-depth understanding of their assets. Maintain a list of their investment holdings, IRAs, other retirement accounts, and life insurance policies. Include current balances, account numbers, and projections for social security benefits.

Execute the proper estate planning documents. 

Make a plan to gather and review several legal documents involved in estate planning. If your parents already have some of this paperwork completed, be aware that it may need updating. 

Common elements in an estate plan include the following.

Wills. Your parents’ wills control where their possessions go and tie up other loose ends. (Jointly owned property with rights of survivorship automatically passes to the survivor.) It’s important to note that wills usually name an executor, and if you’re handling your parents’ financial matters, you may be the best choice.

Living trusts. A living trust can add to a will by providing for the distribution of selected assets. Unlike some of the assets in a will, a living trust isn’t required to go through probate, so you might be able to save time and money and avoid public disclosure.

Powers of attorney for health and finances. This authorizes someone to legally act on behalf of another person. A durable power of attorney is the most common version, and with this, the authorization continues after the individual becomes disabled. This document gives you the ability to better manage your parents’ affairs.

Living wills or advance medical directives. These documents provide guidance for end-of-life decisions. It’s essential to make sure that your parents’ doctors and other relevant medical professionals have copies of advance directives so they can act in accordance with your parents’ wishes.

Beneficiary designations. If your parents have completed beneficiary designations for their retirement plans, IRAs, and life insurance policies, these designations will take precedence over any references in a will, so it’s critical to keep them current.

Spread the wealth

If you decide that the best way to help your parents is to provide them with monetary gifts, avoiding a gift tax liability is relatively easy. Under the annual gift tax exclusion, you can give any recipient up to $17,000 (for 2023) without being required to pay gift tax. 

Also, payments made to medical providers are not considered gifts, so you may make these payments on your parents’ behalf without using any of your yearly exclusion or lifetime exemption amounts.

Have questions? Smolin can help

If you’re a member of the Sandwich Generation, you’ve probably got plenty on your plate. If you have questions about handling your parent’s estate plans or managing your own, contact the knowledgeable professionals at Smolin, and we’ll help you navigate this complex process with ease.

Is QuickBooks Right for your Nonprofit?
Is QuickBooks Right for your Nonprofit? 1275 750 smolinlupinco

Nonprofit organizations are created to serve nonfinancial or philanthropic goals rather than to make money or build value for investors. But they still need to keep track of their financial health, paying attention to factors like:

  • How much funding is coming in from donations and grants
  • How much the organization is spending on payroll
  • How much it’s spending on rent and other operating expenses

Many nonprofits use QuickBooks® for reporting their results to stakeholders and handling their finances more efficiently. Here’s an overview of QuickBooks’ specialized features for nonprofits.

Features of QuickBooks for nonprofits

Terminology and functionality. QuickBooks for nonprofits incorporates language used in the nonprofit sector to make it more user-friendly for nonprofits.

For example, the software comes with templates for donor and grant-related reporting. Accounting team members can also use it to assign revenue and expenses to specific funds or programs.

Expense allocation and compliance reporting. Many nonprofits often receive donations and grants with particular requirements regarding the expenses that can be applied. 

These organizations can use QuickBooks to establish approved expense types and track budgets for specific funding sources. They can also use the software to satisfy compliance-related accounting and reporting regulations.

Streamlined donation processing. Everyone likes convenience, and donors to nonprofits are no exception. The easier it is to donate to a nonprofit, the more likely it is that people will do so. 

QuickBooks allows for electronic payments from donors. The software also integrates with charitable giving and online fundraising sites, enabling nonprofits to process in-kind contributions, such as office furniture and supplies.

Tax compliance and reporting. Failure to comply with IRS reporting regulations could cause an organization to lose its tax-exempt status. QuickBooks provides a customized IRS reporting solution for nonprofits, which includes the ability to create Form 990, “Return of Organization Exempt from Income Tax.”

Donor management. With QuickBooks, nonprofits can store donor lists. This function includes the ability to divide the data according to location, contribution, and status.

Using these filters can make connecting with and nurturing donors who meet specific criteria easier. One example is reconnecting with significant donors who’ve stopped making regular contributions to your organization.

Data security. Data security is critical to building trust and encouraging donors to support your organization again in the future. 

QuickBooks protects donors’ personal identification and payment information by allowing the account administrator to limit access for viewing, editing, or deleting donor-related data. 

With QuickBooks, team members can only access and share data with the administrator or owner’s permission.

Not just for for-profit businesses

QuickBooks may be known as an accounting solution for small and medium-sized companies, but it also provides solutions for the nonprofit sector. 

From streamlined processes and third-party integrations to security management and robust reporting, Quickbooks can help nonprofits improve their financial management and fulfill the mission of their organization.

Have questions? Smolin can help

If you’re unsure of whether QuickBooks is right for your organization or you require other accounting services, contact the knowledgeable team at Smolin, and we’ll help you choose the best option for your nonprofit.

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