AUGUST LUNCHEON MEETING MINUTES
Submitted by Holly Adamscheck, Secretary

The Santa Barbara Bookkeepers Association met for its monthly meeting on August.  We had a good crowd with 34 in attendance.  Patty McDaniel won the free lunch. 

New member attendees were Armandina Castellanos who had come as a visitor in June, as well as David Patterson, Lenore Pierce, Heather Brown, and Marilyn Clayton who joined in July and came to the picnic.  New members who joined by mail are Dawn Williams and Joella Shellhart.

Welcome new members!

Kate Silsbury spoke to us about long term healthcare insurance.  She said that too many people put off getting insurance until it is too late due to preexisting conditions.  She was well prepared and very informative.

Thanks to Ken Jurgensen for taking notes while I had the flu.

LETTER FROM THE SBBA PRESIDENTS 

Greetings! 

It’s that time of year again.  Please come to the September meeting to vote on the following proposed slate of officers for the 2002-2003 term: 

President:            Maureen Turk
Vice President:    Jennifer Loren
Treasurer:            Ken Jurgensen
Secretary:            Holly Adamscheck

We are very appreciative of Maureen and Jennifer’s willingness to serve and of Ken and Holly’s continued great service.  We step down from the Presidency knowing the Association is in excellent hands. 

We also thank Mary Cathcart  as she steps down from her many years of service on the Board of Directors.  She has given so much time and effort throughout the years, and we know she will continue to be an asset, a “sounding board,” and a resource. 

Other changes: 

Nancy Gomez has volunteered to take over the Newsletter Editor position recently vacated by Sandy Stites.  Thank you Nancy.  We look forward to your first edition in November.  And thank you to Sandy for her years of service.

Karen Ziegler and Sandy O’Meara have volunteered for this year’s Holiday Committee.  Karen says they already have some ideas in mind.  Can’t wait to hear about them!  Thank you both for contributing.

We are heading into our 12^th year!  Thank you ALL for making this organization what it is today.

Vicki St. Martin & Caron Garliepp, Co-Presidents

REMINDER
Submitted by Jennifer Loren

It seems I always think I have plenty of time and before you know it time has flown by.  I reordered checks the other day from Intuit and the representative encouraged me to order year-end forms then and not to wait.  As a result of following that advice, I will be saving on shipping.  So, now is a good time to start auditing your 1099s, W-2s, and envelopes and figuring out how many forms you will need for each client.

Editor’s Note:  I loved the picnic at Skofield Park in July!  The food was delicious, the setting sublime, the company terrific, and the ROPES games lots of fun and very interesting.  Thanks to Pam Allman and everyone else who helped make this a memorable and enjoyable summer afternoon.

JUST DUE IT

Enclosed with your newsletter is a personalized letter from our Treasurer, Ken Jurgensen, letting you know your dues status and your information on file.  PLEASE take the time to review the insert.  If you have any changes, please return this sheet with your changes noted and your dues payment.  You may bring the information to the September meeting or return the sheet and a check to Ken at his home address.

QUICKBOOKS IDIOSYNCRASIES
Submitted by Monica Dittrich

Within QuickBooks, there are a myriad of idiosyncrasies that can potentially have a HUGE impact on the accuracy of your or your client’s data.  One to be particularly aware of is how to properly use the QB Account Type “Cost of Goods Sold.”  Unless you are using this “Type” account specifically for the QB inventory function, you may have very distorted data.  The trick is within the “Items.”  If you have an Item(s) set up using the “Item Type:  Inventory Part,” QB uses the average cost method of inventory valuation—whether or not you are truly intending to use it in this manner.

Rather than explain the complexities here, follow these steps to check your data if you are not intending to use the QB Inventory Function: 

      Go to the Item List; see if there are any “Inventory Part” items on the list.

      Double click on the “Inventory Part” items one at a time and verify that there is NOT a corresponding Cost of Goods Sold Account set up for that item.  If there is, your data has been calculated using the “average cost method” explained above. 

      To see specifically how this has affected your data, pull up a Profit and Loss Report.  Double click on any Cost of Goods Sold total, Income total, or other direct expense total, and you will find how QB has applied the average cost method by applying invoices to expense/COGS accounts and bills and other expenses to income accounts.  The Inventory Account has also been debited and credited along the way.

If this has happened to you or your client’s data, I would let the client’s CPA know as it could have had adverse affects on their tax returns as well as on the current year’s data.  From my experience, most clients opt to let it go and set up a QB New Company in order to start over with the correct item and chart of account types.

This is among the type of issues that I will be covering in my upcoming QuickBooks Class on October 26, 2002 [editor’s note see  Come and Learn below].  Set up and verification of use within QuickBooks is crucial to accurate data.

HYBRID CARS

The Internal Revenue Service approved three hybrid cars for a special $2000 tax deduction, according to the Los Angeles Times on September 8, 2002.  The approved cars are the Toyota Prius, a hybrid version of the Honda Civic, and the Honda Insight. 

Hybrid cars, “which are powered by a combination of gasoline and electricity, are covered by a 1993 law offering tax deductions for ‘clean-fuel vehicles.’  The law has been largely unused because it wasn’t clear which cars would qualify for the break.” The combination of new technology and tax breaks seems to create a great opportunity for hybrid car buyers.  The deduction will bring hybrids’ cost into the range of the usual gas-powered car.  The deduction will be taken before adjusted gross income.

COME AND LEARN      

In keeping with Board policy and the stated purpose of the organization to provide an exchange of information and further the education of our members, the Newsletter Committee will maintain a calendar listing of educational opportunities available to members and the public.  This listing will contain information that you send in.  Please send your contributions to the editor.

QuickBooks Level 1 Class

Saturday, October 26, 2002, Goleta Valley Community Center.  10a.m.-1p.m.  $95 (SBBA members 20% discount)

This is a Beginner/Intermediate class for those looking to learn and/or improve their QuickBooks knowledge and skills.  Seminar will be given by Monica Dittrich.  For more details go to:

http://www.monicadittrichconsulting.com

Adult Education Classes

Here are a few classes that might be of interest.  The instructors have spoken to our group.

Investing and Financial Planning for Women Part 1—Kate Silsbury. 

Financial Planning Using the Internet—Meriann Zuk-Plamondon. 

Introduction to Handheld Computers—Roberta Nielsen. 

Palm OS Handheld Computer Basics—Roberta Nielsen. 

For details on these and other classes, go to:

http://www.sbcc.net/rt/ce/classes.htm

Your editor this month was Julie Raffety.  Jo Rogers kindly proof-read.  Next month’s editor will be Jo Rogers.  Thanks to those who submitted information!