December 2018 Newsletter

What we’re talking about in December:

  • Happy Holidays from all of us at Ledgerwood Associates!
  • Another HUGE announcement from LAI: our latest cloud ERP product is…
  • Just in time for Year End — the Sage Add Users or Modules sale
  • MORE Year End resources!! Bookmarks, online training classes, and advice from Ruth S.
  • Awesome ‘Tips and Tricks’ for Sage 300 CRE | Sage 100 CON | Sage Estimating

 


Product addition announcement

We’re very excited to offer… Sage Intacct!

LAI is very happy to announce that Sage Intacct has been added to our suite of Sage products. Why add another major core product? Because Sage Intacct is an award winning, cloud financial management software for mid-market organizations looking to move forward with modern, cloud-based financial management.

At LAI, we say it’s sexy (well, not out loud). Intacct is intrinsically connected to Salesforce, and shares many business model similarities, such as specific industry vertical functions, an extensive App marketplace, and a loyal developer community.

Gartner ranked Intacct as a ‘Visionary’ in their Magic Quadrant for “Cloud core financial management suites (read it here). A nugget from the press release explains it well:

This first-ever Gartner Magic Quadrant for cloud core financial management suites is a testament to the transformation taking place in this market as companies increasingly move from on-premises to cloud-based ERP solutions,” said Rob Reid, CEO of Intacct. “We believe our placement as the highest and furthest Visionary in the report and our above-average reference customer feedback are a clear validation of Intacct’s strategy and the incredible benefits we deliver to our customers.

Ledgerwood has no doubt that eventually, every business software solution will be accessible, if not 100% residing, in the cloud. It’s not even the future — it’s the NOW. And we are lucky enough to offer the category market leader!

Read more about Intacct on this webpage.

Look for a press release in the near future!

 


Make your YE a little easier with more help!CLICK HERE TO GET STARTED

The more you buy, the bigger the discount!

Purchase Sage 300 CRE, Sage 100 CON, or Sage Estimating modules or user licenses and receive the following discounts based on the number of additional users/modules:

This offer ALSO includes these OEMs!

  • My Assistant
  • Office Connector
  • eTakeoff
  • Sage Paperless Construction

1 License/Module get 5% discount


2 Licenses/Modules get 10% discount


3 Licenses/Modules get 15% discount


Don’t forget about the Section 179 deduction!

What is the Section 179 Deduction?

*Most people think the Section 179 deduction is some mysterious or complicated tax code. It really isn’t, as you will see below.

Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.

**In years past, when your business bought qualifying equipment, it typically wrote it off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example).

Now, while it’s true that this is better than no write-off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.

And that’s exactly what Section 179 does – it allows your business to write off the entire purchase price of qualifying equipment for the current tax year.

This has made a big difference for many companies (and the economy in general.) Businesses have used Section 179 to purchase needed equipment right now, instead of waiting. For most small businesses, the entire cost of qualifying equipment can be written-off on the 2018 tax return (up to $1,000,000).

(Excerpted from the Website located at https://www.section179.org/section_179_deduction/ * and https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act **

Yes, the Add Users/Modules are eligible!

Don’t be misled by the “off the shelf” disclaimer — both Sage 100 Contractor and Sage 300 Construction and Real Estate software qualify for the deduction. This is a great incentive to add the power you need to work smarter, not harder. Here’s the disclaimer:

Any “off-the-shelf” computer software that (a) is not custom designed, and (b) is available to the general public is qualified for the Section 179 Deduction in the year that you put the software into service.


Need help installing? DIY instructions

How to add new modules or additional licenses in Sage 300 CRE

Adding more licenses for modules you already own is relatively easy. The trickiest part is making sure all of your users have fully exited the system before you begin. Under some circumstances, even after all users have exited all Sage 300 CRE applications, the changes you make still do not update the number of uses available.

Here’s a great blog post from Sage 300 CRE consultant, Kyle Z., on how to do-it-yourself!

 

If you don’t care to DIY, contact LAI for help! It’s REALLY ‘No Big Deal!’

 


You must have been GOOD this year

Santa left goodies for IA users!

ICYMI (in case you missed it) Sage sent out several notifications in the lasts 5 weeks, regarding the bundling of Mobile Intelligence and Sage 300 CRE Information Assistance.

Each customer with Information Assistance (IA) received:

  • Mobile Reports for each license of IA
  • Dashboard viewer for each license of IA
  • Dashboard Designer

You need to accept the Microsoft Azure terms of service, and use the MS Azure login information.

 


It’s still all about Year End

By Ruth Stockdale, Director of Professional Services

More is more!

We already had an article about year end information sources in the November newsletter. But the year end is still ahead of us and some things are worth repeating. If you are still working out plans for December and January – software upgrades, closing applications, generating and filing tax-related forms, audit preparation—here is a link back to that article.

Empower yourself with live training

In particular, consider attending the Ledgerwood online training options scheduled in December and January (view all options here).  Year end processes are recurring, and even if you have done them before, it is easy to forget from one year to the next. Whether you have a new staff person, you are new to the software, or you just need a refresher, our live training sessions could be just what you need. If the dates and times don’t work for you, let us know; we can look at other options.

Use YE as a ‘best practice’

LAI has information that can help you with various types of data housekeeping, both in this issue and archived newsletters. Year end is a good time to look at some of the optional clean-up tasks you can do that will help clean up and speed up your entire system!

Plan for improvements

Finally, if you find all is going well and you have a few spare minutes, consider what your company plans for 2019. Does anything in your data setup require a change to help support new activities or reports? Are there plans to adopt more mobility tools and deliver more information directly to the field personnel? Do you want to fine tune or improve the way people view data? We will look at these topics in more detail in next year’s newsletters.

Resource collection

Lucky you! LAI has created a landing page with resources from Sage and from us! There’s blogs, links, and advice — aplenty! And we add more as we go, or get new info. (And check out all the training options, below.)

Bookmark your page by clicking on the Sage product you use:

— OR —

As always, please contact LAI at 480.423.8300  if we can assist or provide additional information. And sign up for the training listed below!


Sage 100 CON Online Training Schedule

Cost

Each INDIVIDUAL class is $50, but you if you sign up for all four – you get the last one for FREE ($50 value). So sign up ‘in order’ (by date) and when you register for the fourth ACA Report class, enter the discount code: 4THONEFREE.

Sage 100 CON Year End Payroll

Covers payroll archiving to prepare for the new year. In this webinar the instructor will walk you through the screens for this process and allow for Q&A time. You can run through the process on your own system during the webinar. The session is repeated multiple times—sign up for the one that is best for your schedule.

PREREQUISITES — Make sure you have Database Administrator access and that you have backed up your files. Details will be provided after you enroll in the class. LENGTH — Approximately 30 minutes but may run longer due to the number of questions.

DATE

12/27/18
12/28/18
12/31/18
01/02/19
01/03/19
01/04/19

TIME

3:00 pm MST
10:00am MST
11:00am MST
8:30 am MST
2:00 pm MST
2:00 pm MST


Sage 100 CON Year End Filing Reports – W-2s

Lecture/demo of steps involved with filing using AAtrix.

PREREQUISITES — None. LENGTH — Approximately 30 minutes but may run longer due to the number of questions.

 

DATE

1/10/19
1/23/19

TIME

10:00 am MST
10:00 am MST


Sage 100 CON Year End Filing Reports – 1099s

Lecture/demo of steps involved with filing using AAtrix.

 

PREREQUISITES — None. LENGTH — Approximately 30 minutes but may run longer due to the number of questions.

DATE

1/23/19

TIME

2:00 pm MST


Sage 100 CON Year End Filing Reports – ACA Report

Lecture/demo of steps involved with preparation and filing using AAtrix.

 

PREREQUISITES — None. LENGTH — Approximately 30 minutes but may run longer due to the number of questions.

DATE

1/25/19

TIME

2:00 pm MST

 


Sage 300 CRE Online Training Schedule

Cost

Each two-hour online class is $249.00

Sage 300 CRE Accounting Year End Procedures

This 2-hour class will include tips for reconciling the Payroll module to itself and to GL, step-by-step instructions for using Aatrix to prepare and print W2s, and what you should know about tracking and reporting ACA Compliance in Sage 300 CRE.

PREREQUISITES — None. LENGTH — 2 hours.

DATE

12/13/18

TIME

9:00 am MST


Sage 300 CRE Year End Archiving

This 2-hour class will include tips for reconciling the Payroll module to itself and to GL, step-by-step instructions for using Aatrix to prepare and print W2s, and what you should know about tracking and reporting ACA Compliance in Sage 300 CRE.

PREREQUISITES — None. LENGTH — 2 hours.

DATE

2/7/19

TIME

9:00 am MST


 

Follow LAI on Social Media for current construction and technology news!

         linkedin-icon
Check out the LAI YouTube channel – recordings of past webinars and training classes!

 


Upcoming LAI Online Training and Networking Events:

Dec 27 @ 3:00 pm – 3:30 pm
Sage 100 CON Year-End Payroll
3:00 pm
Covers payroll archiving to prepare for the new year. In this webinar you will be able the instructor will walk through the screens for this process and allow for Q&A[...]
Dec 28 @ 10:00 am – 10:30 am
Sage 100 CON Year-End Payroll
10:00 am
Covers payroll archiving to prepare for the new year. In this webinar you will be able the instructor will walk through the screens for this process and allow for Q&A[...]
Dec 31 @ 11:00 am – 11:30 am
Sage 100 CON Year-End Payroll
11:00 am
Covers payroll archiving to prepare for the new year. In this webinar you will be able the instructor will walk through the screens for this process and allow for Q&A[...]
Jan 2 @ 8:30 am – 9:00 am
Sage 100 CON Year-End Payroll
8:30 am
Covers payroll archiving to prepare for the new year. In this webinar you will be able the instructor will walk through the screens for this process and allow for Q&A[...]
Jan 3 @ 2:00 pm – 2:30 pm
Sage 100 CON Year-End Payroll
2:00 pm
Covers payroll archiving to prepare for the new year. In this webinar you will be able the instructor will walk through the screens for this process and allow for Q&A[...]
Jan 4 @ 2:00 pm – 2:30 pm
Sage 100 CON Year-End Payroll
2:00 pm
Covers payroll archiving to prepare for the new year. In this webinar you will be able the instructor will walk through the screens for this process and allow for Q&A[...]
Jan 10 @ 10:00 am – 10:30 am
Sage 100 CON Year-End Filing Reports W-2s
10:00 am
Lecture/demo of steps involved with filing using AAtrix. PREREQUISITES — None. LENGTH — Approximately 30 minutes but may run longer due to the number of questions.
Jan 23 @ 10:00 am – 10:30 am
Sage 100 CON Year-End Filing Reports W-2s
10:00 am
Lecture/demo of steps involved with filing using AAtrix. PREREQUISITES — None. LENGTH — Approximately 30 minutes but may run longer due to the number of questions.
Sage 100 CON Year-End Filing Reports 1099s
2:00 pm
Lecture/demo of steps involved with filing using AAtrix. PREREQUISITES — None. LENGTH — Approximately 30 minutes but may run longer due to the number of questions.
Jan 25 @ 2:00 pm – 2:30 pm
Sage 100 CON Year-End Filing Reports ACA
2:00 pm
Lecture/demo of steps involved with filing using AAtrix. PREREQUISITES — None. LENGTH — Approximately 30 minutes but may run longer due to the number of questions.
Feb 7 @ 9:00 am – 11:00 am
Sage 300 CRE Data Archiving @ GoToTraining
9:00 am
Archiving Best Practices This 2-hour presentation will provide Sage 300 CRE users with step-by-step instructions and live demonstration of procedures used to archive data in all modules, including the creation[...]

 



Tax Savings from Cost Segregation Studies Add Up for Businesses

Submitted by Bryan Eto, CPA BeachFleischman

Has your company invested in buildings this year to rent out or use for business purposes? Real estate investors have used cost segregation studies for many years to lower their tax bills. In a nutshell, these studies divide property into smaller parts, allowing for faster depreciation of certain parts of a building.

Thanks to liberalized depreciation rules included in the Tax Cuts and Jobs Act (TCJA), real estate investors who conduct cost segregation studies may be able to write off an even bigger portion of a building’s overall cost in the early years of ownership than they could under prior law. Here’s how you can put this strategy to work for you.

The Basics

Cost segregation studies help recoup your investment in qualified property faster than you’d normally be able to under the usual tax rules. Generally, a commercial property must be depreciated over a lengthy 39-year period. (The depreciation period is 27.5 years for residential property.)

A cost segregation study identifies various building components that may be classified as personal property and land improvements that are subject to shorter write-off periods. For instance, some property may be classified as five-, seven- or 15-year property eligible for accelerated depreciation methods.

As a general rule, IRS regulations define “personal property” as tangible depreciable property other than buildings and their structural components.

Several U.S. Tax Court cases have held that parts of a commercial building may be treated as personal property if they relate to only the equipment used in a business located in the building, instead of normal operation of the building. This may include such components as:

  • Specialized electrical equipment and systems,
  • Plumbing systems in restaurant kitchens, and
  • Removable carpeting.

The write-off periods for components often depend on the nature and use of the commercial property. The rules can be confusing. So, many taxpayers rely on outside tax experts to provide cost segregation studies that break down write-off periods for various building components.

Brave New World in Cost Segregation

The TCJA expands the benefits of cost segregation studies, starting in 2018. The two most relevant provisions relate to Section 179 expensing and bonus depreciation deductions.

Sec. 179 expensing

Under Internal Revenue Code Sec. 179, a business can currently deduct the cost of qualified property placed in service during the year, up to a specified limit. But the Sec. 179 deduction can’t exceed your business income for the year. In addition, the deduction is phased out on a dollar-for-dollar basis for acquisitions of property above an annual threshold.

For tax years beginning in 2018 and beyond, the TCJA permanently increases the annual Sec. 179 deduction limit and the amount is adjusted for inflation. For 2018, the inflation-adjusted deduction limit is $1 million (from $510,000 for 2017). The TCJA also increases the deduction phase-out threshold limit for 2018 to $2.5 million (from $2.03 million for 2017).

Also, more assets now qualify for the Sec. 179 deduction under the TCJA. Examples include property used predominately to furnish lodging and various nonstructural improvements to commercial property such as roofs, HVAC equipment, and fire and security systems. These changes are effective for assets placed in service in tax years beginning after 2017.

Bonus depreciation

A business must claim first-year bonus depreciation deductions for qualified property placed in service during the year unless it elects out by property class. Qualified property generally includes tangible assets with an applicable tax recovery period of 20 years or less and computer software. Special rules apply to vehicles.

There are no phase-out limits for bonus depreciation, which is helpful for larger companies. In some cases, both Sec. 179 and bonus depreciation may apply to the same property.

Previously, the bonus depreciation deduction was equal to 50% of the remaining cost of qualified new property, after any Section 179 deduction. The TCJA doubles the bonus depreciation percentage to 100%, albeit temporarily, while extending this tax break to used property. (Under prior law, bonus depreciation applied to only new property.) These changes are generally effective for qualified property placed in service after September 27, 2017, and before January 1, 2023.

Bonus depreciation is generally reduced after 2022, based on the following schedule:

  • 80% for property placed in service in 2023,
  • 60% for property placed in 2024,
  • 40% for property placed in service in 2025, and
  • 20% for property placed in service in 2026.

After 2026, bonus depreciation will no longer be allowed, unless Congress decides to extend it. (The preceding cutbacks are delayed by one year for certain property with longer production periods.)

As a result of enhanced Sec. 179 expensing and bonus depreciation provisions, real estate investors may use cost segregation studies to claim “bigger and better” depreciation deductions in the early years of ownership, rather than recovering the costs over the usual 39-year period.

Cost segregation can provide a sizable tax windfall for commercial building owners under the TCJA. However, your cost segregation study should adhere to the guidance outlined in an Audit Technique Guide (ATG). (See “IRS Closely Studies Cost Segregation Studies” at right.) Overly aggressive cost allocations and inadequate documentation can lead to additional scrutiny from the IRS.

Get It Right

If done correctly, cost segregation studies can dramatically lower your tax bill. But if your study is audited by the IRS and issues are unearthed, this strategy can backfire — potentially costing significant additional taxes, penalties and interest. Contact your tax advisor to discuss whether a cost segregation study is right for your situation and how to minimize the risk of attracting unwanted IRS attention.

Contact Us

Consult with your accounting, finance, and tax professionals who are familiar with construction best practices. This will make your life easier down the road as well as more profitable.

Beach Fleischman 2201 E. Camelback Rd. Phoenix, AZ 85016 | 602.265.7011 | http://beachfleischman.com | twitter: @BeachFleischman

 


 

Prepare for the ‘big night’

by Pam Schulz, Sage Certified Consultant

A checklist for closing the year out

Last month, I shared a checklist for preparing for YE, right up until the ‘big night.’ This month, you have the final instructions.

Between your last payroll check of 2018 and your first payroll record in 2019, you must archive your payroll files. You will also update the New Year’s files with new tax rates, and perhaps perform some employee maintenance in vacation and sick accruals. While the tasks above can all be done “ahead of time”, the actual archiving function has to be fit into a very specific timeframe.

Final steps:

  • Decide when you are going to cutoff/archive
    1. Exclusive access required
    2. AFTER last 2018 check; before first 2019 record.
    3. Allow approx. 30 minutes
    4. Put this on your schedule and make sure you have tech resources/help scheduled as needed
  • Perform all of the balancing tasks (see Section #3 in the November newsletter tips). This way you can have all issues corrected, and be ready to simply run the archive when the time comes.
  • Have handy your new rates: (check for last minute IRS changes)
    1. FICA; 6.2%; max $132,900 (as of 12/4/18)
    2. Medicare; – 1.45%; no maximum
    3. FUTA- .6%; max $7000- many states have “credit reduction” surcharges- be aware
    4. Your state unemployment – check notices you have received in the mail
  • When you are ready to archive, a “wizard” will help you complete all steps. Make sure you have backed up files prior to that process.

Next month you will be printing the actual tax forms. Having these preliminary steps wrapped up will make the job much easier, resulting in a HAPPY NEW YEAR!

Need help implementing your software? It’s ‘no big deal’ getting support from LAI — just click the form below.

 

Archiving the Log Viewer in Sage 300 CRE

by Kyle Zeigler, Sage Senior Certified Consultant

Your secret sleuth…

Did you know that for every process started and ended in your Sage 300 CRE system, and all of the steps in between, a log record is created? If you are diligent in reading the print journals produced after every data entry and processing task, you may sometimes see the message, “Errors found – check the System Log in Log Viewer.” These log records provide valuable information about what is happening in your software!

…can slow you down!

The log records are stored in your system files, but can be viewed and searched using Common Tasks > Tools > Log Viewer. What many users don’t know is that these log records pile up over time, causing your system’s Global file to increase in size. The Log Viewer becomes increasingly sluggish to use, sometimes locking up Desktop for what seems like endless minutes when attempting to search for errors. Over years of Sage 300 CRE use, backing up and upgrading your system files takes longer and longer.

Archive for speed

Periodic archiving of your system log can help improve response time in the Log Viewer and reduce the size of the Global folder in your system files. Before archiving the Log Viewer, please keep in mind that the current Log Viewer includes up-to-date logs. To archive only on specific dates, click on the Display option at the top of the Log Viewer and choose Custom to specify the date range to archive. Click Filter to limit the log entries to a specific type. If you have never archived the Log Viewer, depending on how many users access your system and how long you have been using Sage 300 CRE, be prepared for this process to possibly take several hours!

Archive the Log Viewer:

  1. Have all users exit all Sage 300 Construction and Real Estate applications.
  2. Make a backup of the Global folder located under C:\ProgramData\Sage\Timberline Office\9.5\Accounting\Global at the server or \\[serversname]\Timberline Office\9.5\Accounting\Global from a workstation.
  3. Launch the Log Viewer:
    • From the Sage Desktop Applications menu, select Common Tasks, Tools, Log Viewer.
  4. Make changes to the Display date and Filter as stated above if you do not need to archive all the logs entries. What is currently displayed in the Log Viewer will be archived.
  5. Click on the Archive option.
  6. Choose the Archive option if you want to archive the log, but still keep the entries in the Log Viewer. Choose Archive and Delete if you want to archive and delete the log entries from the Log Viewer.
  7. Save the archive file to the destination of your choice.

Compact the Data Files:

  1. Launch File Doctor:
  2. From the Sage Desktop Applications menu, select Common Tasks, Tools, File Doctor.
  3. Select the Compact Good Files check box.
  4. Select the QL Master file.
  5. Click Start and when prompted select a location and file name for the File Doctor report.

If you would like assistance archiving your system log, please contact Ledgerwood Associates.