Assume you are the owner of a small CPA practice in a major metropolitan area. You have six professional employees, of which 2 are relatively new CPAs, and an experienced office manager. In the past, your practice consists primarily of tax and advisory services, but you want to expand the practice. Based upon your desires to expand the practice, you have found a potential new client. The client has a growing homeowners’ association consisting of 1000 homeowners, who is in the process of acquiring with four other homeowner associations within the next 90 days. This acquisition will increase the number of homeowners to 3000. The new client is interested in using Quickbooks to perform the following functions:
1. Billing – Each month, the system will generate an itemized bill for each homeowner. The fees will vary from $100 to $200 per month, based upon the location of each home, and the type of home (townhouse or single family homes). Late fees are 20 percent per month of the unpaid balance. The bills are mailed the 25th of each month and payment is due by the 10th of the following month. .
2. Collections – Payments can be made in person (at the HOA main office); via mail (via a PO Box); or electronically. Payments will be deposited to the client’s account.
3. Payments: It is expected that the system will generate a minimum of 250 checks / payments each month to roughly 50 different vendors. These payments will cover a variety of services, such as expenses for
· office supplies
· rental space for the HOA
· utility expenses for the HOA office as well as for lighting for each of the 5 HOAs
· lawn care
· refuse & snow removal
4. Payroll: It is expect that the client will have roughly 20 full-time employees and 30 part-time employees. Employees will be paid on a bi-weekly basis. Payment will be made from the client’s payroll checking account, which is separate from the client’s primary account.
5. Reporting: It is expected that the system will be able to handle any and all reporting, including periodic financial statements.
(attached is text book instructions. }
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