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We prepare most type of tax returns:


S Corporation.

C Corporation.




Gary Bode, CPA is a Master's Degreed, nation wide accountant offering tax and business services. Member of AICPA and NCACPA. Our virtual office provides excellent service to long distance and international clients. Call (910) 399-2705 for a free phone consult.

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Client Testimonials

I had a 1099-C for about $135,000. My husband didn't have any withholding on Social Security. His employer couldn't withhold due to incompetence. I felt utter dread wash over me. Memories of owing the IRS before were constantly on my mind. I called a local CPA. Besides being clueless, he wanted to charge me for every question I had about insolvency. I looked on line and found little hope of the countless stories of permanently disabled people like myself getting their student loans forgiven only to be asked to pay taxes on it as if it were income.
Somewhere, somehow, I find an article by Gary Bode. I bookmarked it for when it's time to do the actual taxes. With his excellent help in how to do all of this out of a virtual office I get my part of the work done. My questions got answered, for free. I give a retainer, do what I said I did and wait. I hear from Gary. I go into shock! How can this be? Not only do I not owe on the 135,000....Gary itemizes and after paying what was almost nothing in taxes we get $950.00 back! No more hubby doing the taxes online! I will use Gary Bode as long as he will agree to work with me!
It was so easy, no worries, but professional and top notch. I know I have thanked you Gary but I am so grateful. Thank you ever so much again!

Carla Bray

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Even though Gary enjoys helping colleagues, we no longer provide free consults to other tax preparers. He's happy to consult on an hourly billing basis if our schedule allows.

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QuickBooks CPA discusses using your Bookkeeping to Calculate a Bankruptcy Indicator

CPA Firm in Wilmington NC

Gary Bode, CPA: your QuickBooks bookkeeping can be turned into powerful managerial tools like the Z Factor (a Bankruptcy alarm indicator). (910) 399-2705.

I think QuickBooks CPAs should help Clients use their bookkeeping for managerial purposes. The Fortune 500 companies hire CPAs to do just that. It always seemed unfair to me that small companies don’t have access to these same tools. They really make a difference.

Your QuickBooks bookkeeping components can build powerful managerial tools, like those used by Fortune 500 companies. Most of the information required is on your Intuit QuickBooks bookkeeping reports.  Sometimes you might have to export your QuickBooks reports into Excel.

Some of these QuickBooks bookkeeping calculations act as alarms, warning about potential financial danger. Days Cash on Hand is one of these.  Another is the Z Factor which uncannily predicts if and when a company will go bankrupt, done through a calculation based on profitability and financial position.  Such tools can be part of a Performance Dashboard ued for managerial decisions.  The process usually involves customizing an existing QuickBooks bookkeeping report and then exporting it into Excel for further refinement.  Like producing graphs for trend analysis.

“I don’t recommend running a company strictly “by the numbers”, but accurate and timely QuickBooks bookkeeping can construct powerful managerial tools like the Fortune 500 companies use.”   
Gary Bode, QuickBooks CPA accountant

This Z Factor has been around since the 1960’s.  First developed by Dr. Robert Altman, it was originally used in public companies, as part of Financial Statement analysis by potential investors.  Later, it was modified for private companies.  But sadly, most small business accounting doesn’t use these tools.

Here’s the Z Factor calculation for private companies:

  • A = [(Current Assets – Current Liabilities)/Total Assets] × 6.56 = ________.
  • B = (Retained Earnings/Total Assets) × 3.26 = ________.
  • C = (Earnings before Interest. & Taxes/Total Assets) × 6.72 = ________.
  • D = (Equity/Total Liabilities) × 1.05 = ________.
  • The sum of (A + B + C + D) equals your Z-score.

Note all components for the Z Factor can be directly taken from Intuit QuickBooks bookkeeping reports if:

  • Your QuickBooks setup includes an appropriate chart of accounts.
  • Your data entry is consistent.
  • The QuickBooks bookkeeping is timely.

Again, generally the QuickBooks reports are exported into Excel for semi automated preparation of a monthly Performance Dashboard.

I’m a QuickBooks CPA with a virtual office to help Clients beyond my Wilmington, NC locale. Local clients find the virtual office more convenient as well. I offer a free phone consult at (910) 399-2705.



1 comment to QuickBooks CPA discusses using your Bookkeeping to Calculate a Bankruptcy Indicator

  • Another great post! It is definitely important to consult an accountant when dealing with bookkeeping issues. The calculation guides offered in this post are really valuable tips for employers to use. Thanks for sharing!

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