How to Reconcile a Brokerage Statement in QuickBooks | Accounting Tips

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Reconcile a Brokerage Statement in QuickBooks: How-To Video Instructions

In this accounting tips video, you will get step-by-step instructions on how to read and reconcile a brokerage statement in QuickBooks.

Before you reconcile a brokerage statement in QuickBooks, it is important to understand the basics of what a brokerage account is.

Consider outsourcing your QuickBooks accounting needs – Plumb provides outsourced accounting services, specializing in QuickBooks software for companies and high-net-worth families who need help with bill pay, and personal reporting. 

Book a free consultation with a QuickBooks expert 

What is a brokerage account? A brokerage account is an arrangement between an investor and a licensed brokerage firm that allows the investor to deposit funds with the firm and place investment orders through the brokerage. The investor owns the assets contained in the brokerage account and must usually claim any capital gains as income as it incurs from the account.

Parts of a brokerage statement in QuickBooks

Account Information: basic information, such as the account owners, the time period covered, and the account number.

Statement Account/Summary: This section shows the investments performance as of the statement date by displaying unrealized and realized gains/losses. This also summarizes the total value of stocks, bonds, mutual funds, other investments, and any cash.

Portfolio Detail: This section identifies individual assets in the account and allows the investor to determine whether the holdings listed are accurate. This shows the value of the investments at the end of the statement period, cost basis of the investment, estimated income and yield, and other information, such as bond insurance ratings, stock symbols, and unrealized gains and losses.

Income Summary: This section displays the income and dividends earned by the investments for the statement period and the year-to-date.

Daily Activity: This section includes detailed information on all account activity during the statement period, including all security transactions (purchase and sales), management fees, detail of income received and miscellaneous deposits received and payments made.

Disclosures: This section includes legal and administrative e explanations, such as fee information, penalty warnings, and a description of some symbols used.

How to Set Up and Reconcile a Brokerage Statement in QuickBooks

Each Investment account should be setup as a separate “Other Asset” account on the Balance Sheet. A sub account will be setup for each Asset Class, and under each sub account or asset class, should include a sub account for the Cost, as well as the Market Value.

Account Example:

Charles Schwab XXXX
  • Cash
  • Mutual Funds
    –  Cost
    –  Market Value Adjustment
  • Exchange Traded Products
    –  Cost
    –  Market Value Adjustment
  • Stocks
    –  Cost
    –  Market Value Adjustment
  • Bonds
    –  Cost
    –  Market Value Adjustment

Each Investment Account should have its own Income account for Dividends, Interest, Realized Gains and Losses, Capital Gains Distributions, and Miscellaneous Income.

Account Example:

  • Interest Income
    –  Morgan Stanley XXXX
  • Dividend Income
    –  Morgan Stanley XXXX
  • Realized Gains and Losses
    –  Morgan Stanley XXXX
  • Capital Gains Distributions
    –  Morgan Stanley XXXX
  • Miscellaneous Income
    –  Morgan Stanley XXXX

Each Investment Account should have its own Management Fee account.

Account Example:

  • Management Fees
    –  Morgan Stanley XXXX

Unrealized Gains and Losses will be adjusted monthly to an Equity Account. Each Investment Account will have its own account.

Account Example:

  • Market Value Adjustment
    –  Morgan Stanley XXXX

Reconciling monthly or quarterly Brokerage Statements

A journal entry is typically used to record brokerage statement activity. The following transactions are standard for each entry:

  • Investment Income: this includes dividends, interest, realized gains and losses, and capital gains distributions
  • Sales and purchases of investments
  • Investment management fees
  • Transfers from one investment cash account to another investment cash account or bank account
  • Unrealized gains and losses (market value adjustments) for each Asset Class

Other Notes

  • Be sure to follow the Cash activity. Often time’s people will plug a number to reconcile Cash, which causes them to miss recording receipts, payments, or transfers.
  • Capital gains distributions are typically paid at the end of the year, usually in November and December.
  • Management Fees are typically paid in January, April, July, and October for the prior quarter.
  • If you have sales of investments, there will typically be realized gains and losses to record.
  • Reconcile the year-to-date income and expenses to ensure that all income and expenses have been entered. This will make 1099 reconciliation so much easier during tax season.
  • The Statement Account/Summary will typically provide you with a Market Value change. This typically includes Unrealized Gains and Losses, Realized Gains and Losses, and Reinvested Income.
    –  Make sure that your entry to Unrealized Gains and Losses ties to the Market Value change per the statement.
    –  Make sure that the Unrealized Gain/Loss is a reasonable amount. For example, you will never see a $1 million unrealized gain/loss in a portfolio with a $4 million value.

For more accounting tips from Plumb Family CFO, check out our YouTube channel

Gain financial peace of mind through Plumb Family CFO’s services:

  • Family Bill Pay Services
  • Personal Financial Reporting & Analysis
  • Bank & Credit Card Reconciliation
  • Household Employee Payroll
  • Cash Flow Management
  • Budgeting
  • Outsourced Personal Assistant & Concierge
  • Trust Accounting

Let Plumb handle your QuickBooks accounting.

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Family Wealth: How to Retain it with Better Financial Reporting & Cash Flow Insights

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Retain your Family Wealth by Organizing your Financial Life

Family wealth is a product of success and comes with great responsibilities. In a recent article in the Journal of Accountancy, the best time to evaluate your financial plan is after tax season when you have the most up-to-date information about your family wealth.  Nearly eight in 10 affluent families use the information on their tax return to guide their planning for the year, according to a Harris Poll.

“Organizing and reporting your sources of income, results from investing, and outflows for deductible expenses leaves you with a current road map and a unique opportunity to take a fresh look at whether your strategies are on track to meet your financial goals,” said Neal Stern, AICPA’s National CPA Financial Literacy Commission. “Tax time brings your financial situation to the forefront,” he said.

Wouldn’t it be helpful to have this information at your fingertips any time of the year, and not just after tax season?

The majority of high-net-worth families have a team of advisors to guide their family wealth decision making. These include trust and estate attorneys, CPAs, certified financial planners and wealth managers.  Yet, the actual day-to-day financial responsibilities of staying on top of due dates, paying bills, organizing financial records, tracking expenses and creating budgets relies on the family. The more complex this becomes, it is harder to track and get a clear picture of family wealth.

In order to make better decisions and retain your family wealth, it is important to have accurate and up-to-date financial information.  Plumb Family Office Accounting offers outsourced accounting services to the high-net-worth and provides consolidated financial reporting with real-time data for a holistic view of family wealth.  Unlike wealth management firms, Plumb Family Office Accounting does not manage money or recommend investment strategies. Instead, they work together with their client and their personal financial team in a strategic manner to leverage their total expertise.

Financial transparency gives you the backdrop to make better financial decisions & retain family wealth

Plumb Family Office Accounting offers customizable accounting and bill pay services to wealthy families, so they receive a clear, aggregated picture of their current financial status, which helps to retain wealth.

Plumb Family Office Accounting Services:

  • Personal Financial Reporting & Analysis
  • Monthly Financial Statements
  • Family Bill Pay Services
  • Cash Flow Management
  • Bank & Credit Card Reconciliation
  • Household Employee Payroll Services
  • Budgeting
  • Insurance Coordination & Oversight

By providing the financial information and cash insights, clients can make knowledgeable decision about their wealth.  It also frees up time, so you can enjoy your wealth.  Discover the depth of personalized financial reports from Plumb Family Office Accounting.  To request a quote for family bill pay services, click here. 



How Plumb Bill Pay Works and 5 Reasons to Use It

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At Plumb Bill Pay, our personalized family bill pay services are custom designed to meet the needs of our high-net-worth clients. Our team of experts manages your bills, creates reconciliations and reports to allow your personal financial team to make better decisions about your wealth.

How It Works:

With Plumb’s proven outsourced bill pay solution, you receive high-touch service from accounting experts who provide cash flow reporting, track your expenses and pay your bills reliably and securely.

Our 7-phase bill pay cycle features segregation of duties, multiple levels of review, and secure access. Following these checks and balances, you can enjoy peace of mind knowing that your assets and bills are being monitored and paid on time, and all the while you can monitor your bill pay phases through our bill pay app. Take a look at our proven approach to family bill pay:

Phase 1: Bill Pay Associate receives and reviews vendor invoices.
Phase 2: Bill Pay Associate sends vendor invoices to the client for approval and initiates bill payment.
Phase 3: Bill Pay Lead approves bill payment.
Phase 4: Plumb signer authorizes signatures for ACH, wires, and checks.
Phase 5: Bill Pay Supervisor reviews bank and credit card statements for accuracy.
Phase 6: Bill Pay Associate reconciles bank and credit card statements.
Phase 7: Bill Pay Lead sends weekly cash activity report.

 

Top 5 Reasons You Should Use Plumb Bill Pay:

1. Take your time back:

Have your expenses tracked and all bills paid on time, so you can focus on your family and enjoy your wealth. With 24/7 on-demand access to your own accounts and frequent comprehensive reporting, you or your designated financial representative maintain a direct line of sight into your expenses, without the stress of managing the minutiae.

2. Personalized solutions:

We customize our approach to the specific needs and objectives of each separate client.

3. Be in the know

Receive comprehensive cash flow reports, allowing you and your personal financial team to make better decisions about your wealth.

4. You can rely on us

You will have peace of mind knowing you are in good hands as we offer unparalleled client service and guarantee on-time payments. This takes the pressure of you to plan for upcoming payments and recurring bill due dates. Ensure that your bills are paid on time, so you can devote more energy to enjoying life.

5. Deliver accurate tax documents to your CPA by having organized recordkeeping throughout the year and electronically filing invoices.

Family Bill Pay Services: Organize Your Financial Life

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Family Bill Pay Services | Personal Bill Pay by Plumb Family Office Accounting

Family bill pay services is a featured offering of Plumb Family CFO.  Depending on need and the complexity of your financial affairs, family or personal bill pay can be a stand alone service or used in conjunction with financial reporting, budgeting or expense tracking.  See full list of services. 

As a professional and reliable firm, in business for over 20 years, Plumb sets up processes and procedures to execute family bill pay.  It first starts with collecting bills and vendor information, resulting in a comprehensive list of vendor and account information.  In the client setup phase, a financial calendar of due dates and bill payment procedures are produced.  Not only are your bills paid on a timely basis, but monitored, reconciled, and reviewed.

Family bill pay pricing >> click here

“Thank you for all that you have done for my family.  Your team is proactive and trustworthy and has provided us with such great confidence now that our finances are in order.  What a relief!” – High-Net-Worth Family Bill Pay Client 

 Why Use Family Bill Pay Services?

  • Do you have too many bills to keep track of all the time?
  • Do you want to spend more time with your family and enjoy your wealth?
  • Are you a frequent traveler and need help paying your bills while out of town?
  • Are you disorganized or overwhelmed with paperwork and financial organization?
  • Is anyone in your family suffering from an age- or disability-related challenge?

Contact Plumb Today:



Bill Payment Procedure:

Plumb Family CFO created a 4-step bill payment process with segregation of duties and different levels of review. By following checks and balances, clients can enjoy peace of mind knowing that their assets and bills are being monitored by an independent firm with a long history of continuity and confidentiality.

 

Financial Calendar of Due Dates:

Vendor Information Sheet: In order for Plumb Family CFO to handle the bill pay services of clients, information is collected at the beginning of the engagement, including a comprehensive list of vendors and account information.

family bill paying services

 

Personal Vendor List: A detailed chart of all incoming bills, divided by property is set up.  This vendor list is used as a reference  for each bill, with due dates, payment methods and any special notes.

bill payment services

Financial and Administrative Calendar of Due Dates: This report tracks bills that occur during a quarterly, yearly or semi-annual basis.

Could your family benefit from Plumb bill pay services?  Fill out this form for a customized pricing quote.

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Five Signs That You Need a Back-Office Family CFO

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What is a Back-Office Family CFO?

At Plumb Family CFO, our idea of a “Back-Office Family CFO” is a team of outsourced accountants who handle the financial reporting, bill pay, and cash flow management of a high-net-worth family, rather than having one single Family CFO who takes care of all the tasks associated with a complicated financial life.  A back-office Family CFO, using the Plumb Family CFO approach typically works off-site to handle the accounting and bill pay work remotely, yet still delivers accurate and timely financial information to the client.

Here is a list of five signs that you need a Back-Office Family CFO:

1. Missing due dates and incurring late payments.

You become overwhelmed with the amount of mail received on a daily basis and the pile of bills and due dates keep stacking up.  With so many properties, automobiles, credit card statements, household employees and recurring bills, they are hard to keep track of and get paid in a timely fashion.  Any incurred late payments can lead to damaging credit scores.

Plumb Family CFO offers comprehensive bill pay services for families and individuals.  We oversee your monthly expenses, initiate payments, reconcile your accounts and track your credit card statements.  That way, you never miss a bill and have your credit cards monitored at the same time.  We also provide weekly or monthly cash flow reports, so you know exactly how much cash is coming in and how much cash is being paid out.

Want to learn more about the family bill pay service offered by Plumb?  Click here for a list of frequently asked questions.  Ready for a quote? Answer these questions and we can prepare a proposal based on the amount of accounts to track and bills to pay.  Request a Quote

2. Trouble with keeping track of multiple entities, investments, rental properties and trusts.

You may be the head of the household, but it feels like you a running a multimillion dollar company.  With great wealth comes great responsibility.  Your family’s financial life is complex with multi-faceted undertakings, such as corporate entities, private equity, international exposure, homes and rental properties, and alternative investments. This is a sign that you need help with your personal accounting needs.

Plumb Family CFO delivers financial peace of mind by helping affluent families organize, coordinate and navigate through their financial affairs.  Working in partnership with the family’s team of trusted advisors, we provide the highest quality data and financial reporting to establish a complete view of your assets and financial holdings.

See examples of personal financial reports & analysis that we provide:

  • Statement of Cash Flow
  • Net Worth Statement
  • Family Monthly Budget
  • Vacation/Second Home Expenses
  • Bill Pay Reports

3. You do not have a clear picture of your wealth.

With so many investment accounts, credit card statements and bank accounts, it’s hard to see a clear view of overall wealth.  At Plumb Family CFO, we work with your personal financial team to gather all the information tied to your family’s assets and turn it into a one-page summary of net-worth.  The financial reports we provide are detailed, holistic, and customized to your preference. In order to make better decisions about your wealth, it is important to have up-to-date financial data.

Read: Retain your Family Wealth by Organizing your Financial Life

4. Financial paperwork is not organized for tax season.

Tax deadline is looming and your CPA is working frantically to gather all your necessary paperwork to calculate the right deductions and track all your income and expenses.  It’s costing your family more time and money working with your CPA, because you do not have your financial house in order.

Plumb Family CFO works with their high-net-worth clients to provide an Annual Tax Organizer which is an audit-proof package that allows for maximized standard deductions.  Additionally, we provide your CPA with quarterly reports to adjust estimated tax payments as needed to avoid annual penalties and interest charges from the IRS or Franchise Tax Board.

Learn More: Plumb Family CFO Annual Tax Organizer

5. Too much time is spent handling household finances and not enjoying your wealth.

A good amount of your free time is spent handling household finances and it has become too complex to track properly.  Your family has acquired a team of trusted advisors to help you handle the maze of legal issues, tax planning, and investments, yet you don’t have a consolidated view of your overall wealth.

Why not outsource your personal accounting and family bill pay needs to a trusted and reliable firm with over 20 years of experience working with affluent families and corporations?

See how these families benefited from engaging with Plumb, back-office Family CFO:

Back-Office Family CFO Services by Plumb

If any of these items on the list applies to you and your family, Plumb Family CFO can help.  We are not a wealth management firm and do not recommend investment strategies. We are not a CPA firm and do not file tax returns.  Simply put, we are a back-office Family CFO with a team of personal accountants that have experience working with high-net-worth and their specific needs.  Plumb Family CFO works in partnership with your financial team to provide the highest quality data to help them make better decisions about your wealth and financial planning.

Want to learn more?  Here is a list of the top frequently asked questions about the clients and services offered by Plumb Family CFO.  

Accounting Services Include:

  • Family bill pay – including mail management & vendor management
  • Producing monthly financial statements
  • Cash flow reporting
  • Personal financial reporting & analysis
  • Bank and credit card reconciliation
  • Investment account reconciliation
  • Budgeting services and reporting
  • Household employee payroll services
  • Foundation and trust accounting
  • Annual tax organizer for the CPA

Are you ready to take control of your financial life and start enjoying your wealth?

Schedule a consultation with Plumb Family CFO today:

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Plumb Bill Pay Finalist in the Family Wealth Report Awards 2021

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Press Release: 2021 Family Wealth Report Awards

Awards showcase the best in the industry with categories focused on experts, products and services for wealth managers, high-net-worth clients and financial institutions.

Plumb Bill Pay, a leading bill pay firm servicing family offices and the high-net-worth, has been selected as a finalist in the Bill Pay and Property & Household categories at the Family Wealth Report Awards.

The annual Family Wealth Report Awards program recognizes the most innovative and exceptional firms, teams and individuals serving the family office, family wealth management and trusted advisor communities in North America.

“It is an honor to be nominated for this prestigious and nationally recognized award,” said Anneke Stender, Executive Vice President of Plumb Bill Pay. “This is testament to our best-in-class services and a foundation of technology and bank-level security that has led to our growth and success this year,” she said.

Plumb Bill Pay was nominated for the Property & Household category for their range of service offerings to the private client community, including bill payment, recordkeeping, income and expense tracking, cash flow reporting, vendor and mail management services.

Using a proprietary task management software system to facilitate and track bill payments, the solutions of Plumb Bill Pay are customizable for family offices or individual clients depending on their need and complexity of transactions and reporting.

“It feels great to be recognized alongside the top service providers to the affluent community and trusted by their advisors,” said Robert Scherer, President of Plumb Bill Pay. “As we continue to build relationships with family offices, wealth management firms and financial institutions, it is imperative to keep expanding our technology, security features and ease of use for client satisfaction,” he said.

Stephen Harris, ClearView Financial Media’s Chief Executive, and publisher of Family Wealth Report, was first to extend his congratulations to all finalists.  He said: “The firms and individuals who are finalists in our 8th Family Wealth Report Awards program are all worthy competitors, and I would like to extend my heartiest congratulations.  These awards are judged by an independent panel of judges and finalists are selected on the basis of entrants’ submissions and their response to a number of specific questions, which had to be answered focusing on the client experience, and not only quantitative performance metrics.  That is a unique, and I believe, compelling feature.  These awards will recognise the very best operators in the private client industry, with ‘independence’, ‘integrity’ and ‘genuine insight’ the watchwords of the judging process – such that the awards truly reflect excellence in family wealth management.  I’m delighted that we have made these annual awards the brightest, and most keenly contested highlights in the family wealth management calendar.”

Winners will be announced on 6 May 2021 in Family Wealth Report alongside a series of videos and publications.

About Plumb Bill Pay:

For over two decades, Plumb has been helping high-net-worth families, their businesses, and family offices achieve greater levels of financial freedom by handling their personal reporting and bill pay needs. Plumb Bill Pay offers a high-touch and high-tech approach to personal bill pay and is custom designed to meet the needs of the high-net-worth.

Plumb Bill Pay works with clients across the country and globally. They have office locations in La Jolla and Newport Beach, CA and New York City, New York.

About Family Wealth Report Awards:

The Family Wealth Report is published by ClearView Financial Media, which provides essential business intelligence and up-to-date wealth management news to the global financial services sector.  With a database of 60,000 professionals, ClearView Financial Media is a real voice for private bankers, wealth managers, and advisors in related sectors.

London-based Publisher Stephen Harris is an international financial journalist and private client investment manager. With teams based in New York, London, Singapore, Switzerland and South Africa, Group Editor Tom Burroughes is dedicated to bringing the community useful news, thought-leadership events and important issues facing the private client community. 

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3 Things to Know About Form 1099-NEC

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What is Form 1099-NEC (Nonemployee Compensation)?

The IRS is bringing back a form last used in 1982s —Form 1099-NEC, to be used beginning with 2020 information returns. The draft 2020 version of the form has been posted by the IRS to the agency’s website. Part of the rationale for the new Form 1099–NEC was that the Protecting Americans from Tax Hikes (PATH) Act of 2015.

It will be used to report at least $600 payments made to each person during the calendar year for your business:

  • Services performed by someone that was not your employee
    • Include parts/materials used to perform the service
  • Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish
  • Payments to attorneys

Withheld any federal income tax under the backup withholding rules regardless of the payment amount.

Common examples of who will receive Form 1099-NEC:

  • Attorneys
  • Architects
  • Accountants
  • Graphic Designers
  • Web Developer
  • IT Consultants
  • Freelance writer
  • Non-employee Sales Commission
  • Freelance Contractors
  • Landscapers
  • Other self-employed individuals

Form 1099-NEC:

Due to IRS & Recipient 2/1/21

  • A IRS
  • 1 State Tax Department
  • B Recipient
  • 2 Recipient copy to be filed with state income tax return (if applicable)
  • C Payer

Form 1099-MISC:

Due to recipient by 2/1/21 or 2/16/21 if reporting in box 8 or 10. Due to IRS by 3/1/21 (paper) or 3/31/21 (electronic)

  • A IRS
  • 1 State Tax Department
  • B Recipient
  • 2 Recipient copy to be filed with state income tax return (if applicable)
  • C Payer

Ready to start your new year with organized financials in preparation for tax season? Plumb Family CFO works in partnership with your CPA and personal financial team.  Find out more…

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Know Your Net Worth: Personal Bookkeeping & Bill Paying Services

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Personal bookkeeping & bill paying services help keep your financial life on track.

Do you know your net worth?

It is a simple math equation. Your net worth equals your assets minus your liabilities.

personal bookkeeping

For those with a complex financial life, it can be a challenge to determine this calculation. You must first assign values to all your assets, including investments, brokerage accounts, personal property such as real estate, vehicles, jewelry, etc.  You also need to accurately track your expenses and debt, including loans, bills, taxes due, etc.

When someone’s wealth accumulates to a certain level, many individuals and families turn to a personal bookkeeping service or setup a single family office to help with the day-to-day financial tasks of tracking income/expenses, paying bills and creating consolidated financial reports.

How Can a Personal Bookkeeping Service Help?

Here at Plumb Family CFO, we understand the unique needs of the high-net-worth.  We have been helping affluent families, busy entrepreneurs and retired couples navigate their personal finances by providing a high-level bookkeeping service that is trusted and dependable.

We become your back-office accounting team. Our accounting experts have both corporate and personal bookkeeping backgrounds and deliver white-glove customer service.  By outsourcing bookkeeping to Plumb Family CFO, you will receive a team of accountants to provide services including:

  • Monthly consolidated financial statements to determine your net worth
  • Cash flow reports to track your income and expenses
  • Budget analysis to create a personal budget based on spending habits and long-term goals
  • Bank & credit card reconciliations
  • Entity bookkeeping for sole proprietorships, partnerships or corporations if necessary
  • Payroll administration for your household employees
  • Trust and foundation accounting
  • Bill payment services, including wire transfers, vendor management and capital calls

The setup process is unique for each family.  Personal bookkeeping services are customizable and pricing is based on a monthly fixed-fee basis.  The back-office accounting means that we can work virtually for the majority of the bookkeeping transactions, but also have meetings in person or on the phone to review financial statements and goals.

At Plumb Family CFO, we believe that by knowing your net-worth you can take true control of your wealth. 

What are the benefits of hiring a personal bookkeeper?

  • Reduce your stress and anxiety from managing multiple bills and due dates
  • Get a clear picture of your net-worth to make better decisions regarding your wealth
  • Gain access to a view of your monthly expenses, due dates and income from all your entities, etc
  • Have more time to focus on your family, your business and free time
  • Add the missing piece to your team of trusted advisors 

Want to learn more?  Please contact us for a no-obligation phone call to learn more about our process, pricing and personal bookkeeping services offered.

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Get a Quote for Personal Bill Pay – answer these questions regarding your expenses to help determine monthly price:

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Personal Income Tax Organizer: Preparing your Financials for Filing Tax Returns

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Personal Income Tax Organizer, an Outsourced Recordkeeping Solution by Plumb Family CFO

In this client case study, Plumb Family CFO gives an overview of the recordkeeping and accounting services that go into putting together a personal income tax organizer that streamlines year-end tracking and creates financial organization in order to file tax returns.

Client: High-net-worth real estate investor with multiple properties, S Corp, and brokerage accounts.

Net Worth: $35MM

Background:  This real estate investor has a large portfolio of multi-family rental and mixed-use properties, along with an S Corp, and complex personal accounting needs. With limited time and resources to organize his financial records and supporting tax documents, he turned to Plumb Family CFO as an outsourced accounting solution.

The Solution:  Plumb Family CFO collects, tracks and organizes the client’s financial data to create a comprehensive and audit-proof financial package for year-end.  This allows for the client’s CPA firm to be more cost-effective with their time and helps to maximize standard deductions. Plumb also supplies the CPA with quarterly financial reports to properly adjust estimated tax payments as needed to avoid any penalties and interest chargers with the IRS or Franchise Tax Board.

By having accurate recordkeeping throughout the year, with up-to-date reconciliations and properly tracked income and expenses, the client experienced tax season with the peace of mind knowing that he had the highest quality of data and financial reporting to file tax returns. With a clear financial picture, he was able to make informed decisions with his wealth and property portfolio.

View: Additional Family CFO Case Studies

“Plumb Family CFO tracks and organizes my client’s financials and paperwork throughout the year and I never have to worry about any last-minute fire drills or missing information during tax deadlines”.  – Client’s CPA

Download: Sample copy of Annual Tax Organizer / Personal Income Tax Organizer

Personal Income Tax Organizer: “Pulling it all Together”

In order for Plumb Family CFO to organize and compile all the data for the client’s CPA to file tax returns, we follow an accounting preparation guideline, including:

  • Step 1: Fully reconcile and close out year-end financials
  • Step 2: Print a P&L statement for each entity to use as reference tool
  • Step 3: Work with the client’s CPA to use their standard personal income tax organizer or create document using Plumb Family CFO template
  • Step 4: Outline and track any major purchases made throughout the year that may have a tax impact – for example, purchase/sale of real estate, purchase of electric vehicle or IRA contributions

Financial Recordkeeping & Supporting Tax Documents

Here is a sample list of the supporting tax documents that Plumb Family CFO will collect throughout the year for the personal income tax organizer package.

  • Wages/Salary – W2
  • Interest/Dividend Income:
  • 1099s from bank and brokerage firms
  • General Ledger for private loan/note interest received
  • Capital Gains/Losses
  • 1099 from brokerage firms
  • K1 Schedules
  • Private Equity
  • Hedge Funds
  • Privately Held Companies
  • Property Income/Expenses
  • Include P&L by investment property to be included on Schedule E of the tax return
  • Standard Deductions
  • Include GL detail for each category
  • General Expense Categories
  • Medical and Health Insurance
  • Legal – Estate Planning
  • Interest Expense – either 1098 form for mortgage or investment interest
  • Property Taxes for Residence(s)
  • Donations – include donation receipt for amounts over $250 per annum
  • Tax Payments (IRS and State)

Ready to start your new year with organized financials in preparation for tax season? Plumb Family CFO works in partnership with your CPA and personal financial team.  Find out more…

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10 Reasons to Work at Plumb

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1. Location:

Plumb has multiple office locations in California, including downtown La Jolla and Newport Beach.  The main headquarters is in La Jolla, only steps away from the famous La Jolla Cove.  With the expansion of office space outside of La Jolla, Plumb is able to conveniently work with clients throughout Southern California.

2. Plumb Approach:

Since 1996, Plumb’s growth and reputation has flourished as a direct result of our team’s capacity to address client needs and execute creative and effective solutions to a number of complex organizations.  Throughout the years, Plumb’s operational efficiencies not only lent itself to Plumb’s growth, but they have allowed Plumb to create a staffing structure for optimal pricing.

Plumb employees enjoy working on a number of different clients, in different industries, at any given time. This gives them more exposure to various tasks in accounting and increases their skillset.

The Plumb Structure for an Outsourced Accounting Client:

  • CFO
  • Controller
  • Senior Staff Accountant
  • Junior Staff Accountant
  • HR/Recruiting

3. Team Building Events:

To make the Plumb approach work effectively, Plumb gathers all employees, from all office locations, every quarter for company-wide updates.  At these meetings, each division shares some highlights, including new clients, staffing news, marketing activities, software certifications and charity involvement.

Plumb consists of three distinct divisions: Corporate Outsourced Accounting; Plumb Family Office Accounting and Bill Pay; and Sage Construction Certified Partner.

The best part about these team building meetings is that they are centered around a fun and competitive event.  Accountants and software consultants do NOT like to lose! Plus, Rob Scherer always grills up his famous prime steak sliders.

4. Plumb Clients:

Plumb provides accounting services and software solutions to a variety of companies, industries and high-net-worth families in Southern California and across the United States. With various divisions, serving startups to small and mid-market companies, there is not a “typical” client for Plumb.  Here is a list of some clients and case studies within each division at Plumb.

Outsourced Accounting:

Plumb Family Office Accounting:

Sage Construction Software:

5. COIs – Center of Influence:

Plumb works closely with our client’s center of influence (COI) or trusted advisors.  We believe that a collaborative implementation with all of our client’s COIs leverages their total expertise and gives everyone the backdrop to make better financial decisions and achieve business goals.

6. The Food:

Plumb may consist of a bunch of accountants and software consultants, but that doesn’t mean we aren’t all foodies at heart.  We love to eat! Thankfully, the kitchen is always stocked with snacks, desserts and more snacks.

Every month, Plumb hosts a New Employee Luncheon to introduce new team members and enjoy pizza or a local La Jolla catered meal.

In addition to the monthly luncheons, Plumb also hosts Quarterly Potlucks. This is an all-time favorite event at Plumb. Every quarter we come up with a new ‘theme’ to be added to the sign-up list. Plumb has employees from diverse backgrounds and it’s fun to try different food from different parts of the world.

steak

7. Networking:

Since many Plumb clients are referred by COIs (see number 5), we believe in the power of networking. Plumb employees are members of organizations, such as ProVisors, BIA, ACG, CFMA, CalCPA and the list goes on.

In addition to attending networking events, Plumb also hosts “Lunch and Learns”, “Educational Workshops” and “Webinars”.

8. Parties:

The executive management team at Plumb likes to host parties!  Plumb hosts holiday parties, client appreciation parties, open house parties and parties to celebrate employees and divisions reaching goals.

cre-gold

9. Out-of-Town Conferences:

As a leading software partner for Sage Construction Software, Plumb sends software consultants to annual conferences to learn the updated features and latest requirements.

10. Employees:

Last, but not least, one of the top reasons to work at Plumb are the employees = Plumb!  We call ourselves Plumb, because, regardless of what division, or who our clients are, we work together as a team.  Our clients depend on our expertise, and appreciate the fact that we are an accounting team, consisting of CPAs, and Controllers who are knowledgeable in many industries.

Most importantly, we like to have fun!

team-tag

Want to learn more about Plumb?  We are hiring.  See our job listings here. 

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