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Reckon/Quickbooks – Accounts Hosted and PC – How to set up and use ABA files to pay creditors – simplify!

Reckon/Quickbooks – Accounts Hosted and PC - How to change the email message for sales invoices

Reckon/Quickbooks – Accounts Hosted and PC – How to change the email message for sales invoices

(> means click)

Here is the procedure of how to set up and use ABA files to pay creditors (For Reckon Hosted and some recent Quickbooks versions) –

Before you can prepare an electronic payment file, you need to complete the following steps.

First – Set Up the a bank account in R for Online Banking

  1. Open the bank account you wish to enable for online banking
  • Go to the Lists menu, and click Chart of Accounts. The Chart of Accounts opens.
  • Select the bank account you want to enable, right-click and then select Edit Account. The account details open ready for you to edit.
  1. Click the Online Bank Details
  2. Click to select the Online Account Access check box. R makes a number of fields that relate to online banking active. Enter mandatory information about the online bank account set up with your bank.

Complete the following details:

  • Click the Financial Institution drop-down arrow and select the bank. This may take a few seconds to process.
  • Enter the code in the Branch Code field to identify the branch for the financial institution. This code is known in Australia as a BSB number.
  • Enter the account number in the Account Number
  • Click the Account Type drop-down arrow and select the type of account.
    You may choose cheque, savings, credit card, money market or line of credit.
  • Click to select Include Balance Record if you want to include a balance record for online banking files (ABA format) that you generate. This applies if you plan to pay employees or suppliers by generating online banking files (ABA format) in Reckon. Most banks require online banking files to include a balance record within the ABA file format. You should check with your financial institution first.
  • Enter an APCA number in the APCA number field for this account if it is different from the Default APCA number for your company. The APCA number entered in account details always overrides the default APCA number entered in company banking preferences for all online banking transactions using this account.
  1. Click Save & Close.

Second – Set up Suppliers and Employees for Online Banking

Updating Suppliers:

  1. Go to the Suppliers Centre then >Suppliers Tab >
  2. >Double Click a Supplier
  3. >Bank Details Tab >Enter Account Name (of Supplier), their Bank Account Number, Bank Name, Branch Code (BSB eg 083245, 6 digits) OK
  4. Repeat for all suppliers to be paid using ABA files, or that supply a bank account to pay (not Bpay suppliers usually)

Third  – Process Transactions and Create Online Banking File

Pay Bills

This involves processing transactions as normal, but at the Pay Bills window, Reckon should identify payments set up for banking online and have those ready to include when creating an online banking file. So ensure at the bottom the bank you set up for ABA id=s selected, and next to that the Payment Method is “Bank Online”. Finish transaction with Pay Selected Bills. Then Pay more Bills for the next suppliers to pay or Done to finish.

Create an online banking file:

  1. Go to the Online Banking Centre: > (top menu) Banking menu and click Online Banking Centre.
  2. Scroll to the section To Bank (at bottom).
  3. Choose the date you want the payment to be made, using the calendar from the Date to be Processed field or today’s date as defaults.
  4. Enter a payment description eg Creditors or Bills or Pays. If no payment description is entered, a description of “payment” will display in the ABA file by default.
  5. Tick payees from the list. Each payee must have a bank account defined for them under their employee or supplier record. This includes details for Bank Account Name, Number and Branch Code. In addition, employees must have an employee number.
  6. Click Preview ABA File if you wish to review the ABA file before creating it.
  7. Click Create ABA File. Reckon displays the standard Windows Save As dialog box with *.ABA entered in the file name at the end.
  8. Enter a name for the online banking file (leaving the .ABA) and choose a location to save it, such as desktop. Reckon provides a default folder within the installation directory called Export Files/ ABA Files. You may choose to save the ABA file in this directory, or in any other directory of your choice.
  9. Click Save.
  10. Your ABA file is now ready for upload to the relevant financial institution.
  11. Follow their online instructions to upload a payment file.

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – No-one offers as much! Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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Reckon ONE – Support User guides and How-to Videos

Reckon ONE – Support User guides and How-to Videos

Reckon ONE – Support User guides and How-to Videos

Have you started with Reckon One? It is the Reckon online accounting software where you pay for the modules you need – starting at $5 month, you can enter data and reconcile the bank, report on GST for BAS, online backup and 24/7 support. Then invoicing $3, bank feeds of transactions into the software $3, and payroll $3 – each is billed monthly for each module – eg all these listed come to 5+3+3+3. = $14 monthly.

Want some videos and manuals?

Training Reckon ONE http://go.reckon.com/training-one/ starts at live webinars to attend/book

Next tab is Videos page – http://go.reckon.com/newreckonone-videos/

Next tab is Recorded Webinars – http://go.reckon.com/reckon-one-recorded-webinars/(getting Started, Core Modules, Invoices, Projects (Jobs) and Bank Data Module)

YouTube videos – payroll

Payroll set up https://youtu.be/3t_yQ1F5wew

Process Pay Run https://youtu.be/T4_V1PjT5BY

User Support & Guide download from –http://home.reckon.com.au/support/Home/ReckonSupport/InstallationUpgradeGuides.aspx

Community Reckon One – https://community.reckon.com/reckon/categories/reckonltd_reckon_one  where you can search your topics at the top search box

Knowledge Base (KB) – FAQs and Search links – http://kb.reckon.com.au/index.asp

Also don’t hesitate to contact us if you have any questions on 1300 756 663 or onlinesales@reckon.com.au.

Or call us! – 0407 361 596 Paul for free help up to 30 min!

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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Business Tax Tips – Tax on unused annual & long service leave on termination

Business Tax Tips – Tax on unused annual & long service leave on termination

Business Tax Tips – Tax on unused annual & long service leave on termination

The tax on unused annual & long service leave on termination needs to be carefully determined to ensure compliance. The ATO explains what applies at Schedule 7 – Tax table for unused leave payments on termination of employment. Here is some of the info on that ATO page –

For payments made on or after 1 July 2015

This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by section 12-90 of Schedule 1 to the TAA.

Using this table

You should use this table if you pay an amount to an employee for unused leave on the termination of their employment or office.

Unused leave payments on termination of employment or office include:

  • Annual leav
      • holiday pay
      • leave loading
      • leave bonuses
  • Long service leave.

NOTE – Before calculating the amount to be withheld, you must work out if the payments are being made as a result of a genuine redundancy, invalidity or an early retirement scheme.

For more information, refer to Withholding from unused leave payments on termination of employment.

Working out the withholding amount – depends if TFN provided

1. When a TFN is provided

The amount to withhold is calculated using the table below.

If the post-17 August 1993 lump sum payment from normal termination is less than $300, you must withhold the lesser of the following:

    • The amount worked out using the table below
    • 32% of the payment.

tax on leave annual

tax on leave long service

Rounding of withholding amounts

Withholding amounts calculated by applying this table are rounded to the nearest dollar. Results ending in 50 cents or higher are rounded upwards. If a TFN is not provided, ignore cents when calculating withholding amounts.

Marginal rate calculation

To work out the marginal rate, you must:

    • Using the relevant PAYG withholding tax table, work out the amount to withhold from your employee’s normal gross earnings for a regular pay period.
    • Divide the amount of the payment by the number of normal pay periods in 12 months (12 monthly payments, 26 fortnightly payments or 52 weekly payments).
    • Ignore any cents.
    • Add the amount at step 3 to the normal gross earnings for a single pay period.
    • Use the same PAYG withholding tax tables used at step 1 to work out the amount to withhold for the amount at step 4.
    • Subtract the amount at step 1 from the amount at step 5.
    • Multiply the amount obtained at step 6 by the number of normal pay periods in 12 months (12 monthly payments, 26 fortnightly payments or 52 weekly payments).

NOTE – Do not withhold any amount for:

    • Higher Education Loan Program (HELP) debts
    • Trade Support Loan (TSL) debts
    • Financial Supplement debts.

Normal gross earnings

Normal gross earnings are all payments, except those relating to termination payments, received in the last full pay period of employment. This includes taxable allowances, overtime and bonuses. Therefore, your employee’s normal gross earnings should be taken to be the earnings relating to the last full pay period worked.

Where your employee’s pay fluctuates significantly over a number of pay periods, we will accept an average of gross taxable earnings for the financial year to date over the number of pays received.

Example

The following example uses the Weekly tax table (NAT 1005) effective from 1 July 2015.

Beth retires on 31 December 2015. She qualified for long service leave after 10 years of service, with further leave accruing on each completed year of service.

She is not leaving because of genuine redundancy, invalidity or under an early retirement scheme.

This week Beth also receives her normal weekly earnings of $800. She has quoted her TFN and has claimed the tax-free threshold. Therefore, the amount withheld is calculated using column 2 of the Weekly tax table.

Details of payment for long service leave

Pre-16 August 1978 component = $3,690.00

16 August 1978 to 17 August 1993 component = $7,700.00

Post-17 August 1993 component = $10,890.00

Amounts to be withheld

Pre–16 August 1978 component subject to withholding

= $3,690.00 × 5% = $184.50

The marginal rate calculation is used to work out the amount to be withheld from the pre-16 August 1978 component.

16 August 1978 to 17 August 1993 component

= $7,700.00 × 32% = $2,464.00

The post-17 August 1993 component of $10,890.00 is also to be withheld at the marginal rate. To simplify the marginal rate calculation for this employee, the pre-16 August 1978 component and the post-17 August 1993 component are added together first: $184.50 + $10,890.00 = $11,074.50

Now apply the marginal rate calculation to the sum of the two components.

Step Instruction Result
1 Amounts to be withheld from normal gross earnings ($800) $113
2 Divide the amount of the payment by the number of normal pay periods in 12 months ($11,074.50/52) $212.97
3 Disregard any cents $212
4 Add the amount at step 3 to normal gross earnings for a single pay period ($800 + $212) $1,012
5 Work out the amount to be withheld from the amount at step 4 ($1,012) $187
6 Subtract the amount at step 1 from the amount at step 5 ($187 – $113) $74
7 Multiply the amount at step 6 by the number of normal pay periods in 12 months ($74 x 52) $3,848

The amount to be withheld from the three components of Beth’s unused long service leave payments is $6,312 ($2,464 + $3,848).

The total amount to be withheld is then $6,425 ($113 withholding from normal earnings plus $6,312 withholding from long service leave).

2. When a TFN has not been provided

If your employee who is receiving the unused leave payments has not provided you with their TFN before the payment is made, you must withhold 49% from the payment.

If your employee is a foreign resident who has not provided you with their TFN, you must withhold 47% from the payment.

NOTE – If your employee believes that for their circumstances the amount you withhold will be too much, they may apply for a variation to reduce the amount of withholding.

For more information refer to PAYG withholding – varying your PAYG withholding

NOTE – QC 46069 contains precisely the same content as QC 45606, which is Schedule 7 – Tax table for unused leave payments on termination of employment.

For more information see HERE

Need help? Not sure? Call for FREE 30min advice / strategy session today! 0407 361 596 Aust

***BEFORE you BUY ask us for a competitive software price BELOW retail – no obligation!

You also get FREE 30 min to assist in setting up your company in the software, and FREE ongoing email or phone support – no-one offers as much! Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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MYOB – Tax Tables for 2016 – 2017?

The new tax tables for 2016-2017, have mainly changed in the level $37001 – $$87,000 (was $80,000) range. The full levels are –Pers Tax Rates 16-17

Does your MYOB software have out of date tax tables, or you know you need them by experience every year. (To find what you have, click Set Up then General Payroll Information. In about the middle is the table date at the start of that tax year it applies to).

Tax tables become out of date nearly each year as tax rates and/or Medicare and HECS thresholds can be changed by the Tax Office (ATO). MYOB only supply new tax tables via full software annual subscription. You can no-longer buy the  latest tax tables separately as many years ago. Users must upgrade to a new version or take out Cover under their support program to receive the latest tables or ‘pay2myob.bin’ file for earlier versions (MYOB) to keep payroll compliant. (If you want assistance to upgrade to the latest MYOB call Paul – 0407 361 596 or email us – info@accountkeepingplus.com.au).

The special MYOB tax file (eg ‘pay2myob.bin’) has been specially formatted so that it disallows any manual edit it. Additionally, each version is formatted specially, so you can’t use a tax file formatted for MYOB Version 19 with say Version 16. For the Mac version (AccountEdge®) the tax table file is called “MYOB Tax Tables” or in v9 to 9.6 has a “.tax” extension. Everything else though is the same and all the comments here apply equally to the Mac version.

Note third-party tax tables cannot be used in MYOB 2011 onwards – you MUST have subscription or upgrade. Contact us to discuss your needs, or assistance with upgrades and get our extra BONUSES no obligation. 0407 361 596.

There is a Solution up to MYOB v19.11 and Account Edge 14.5 – Third party updated tax tables available for $67+GST provide a substitute, have been tested by ourselves and work with many prior versions. They are for those who want to continue to use their current versions of MYOB® without the need to upgrade. Note that there is nothing in your license agreement that prevents you using 3rd party tax tables.

Installation is simple. The tables are supplied with easy to follow video and instructions and instantly downloaded after secure credit card  payment in most instances, or will be emailed to you. You also receive a PDF copy of the applicable Aust Tax Office Weekly Tax Table for you to check the accuracy of the calculations. After-sales email support is available for any installation or setup issues you may encounter. If you would like Account Keeping Plus to install for you, we can do by remote desktop – Teamviewer (free software). For $50+GST. Call or email for instructions.

Note – NO changes are made to the software. The only changes made are to the tax rates in your company data file that the software calls upon to calculate PAYG Withholding in a pay, when processing payroll. The changes made are not permanent and can be reversed by reloading the tax tables from your current tax table file, simply moving a file in the software folder

These third-party tables are available, which Account Keeping Plus have tested in the software and tested against the ATO tables and work perfectly for us and our clients. To get more details and purchase for your MYOB – click the grey box to the right – “Tax Tables

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Call 0407 361 596 Aust and also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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MYOB – How to deduct and record child support in payroll

MYOB – How to deduct and record child support in payroll

MYOB – How to deduct and record child support in payroll

Client called – Asked how to deduct and record child support in payroll for a staff member.

Answer We will need to set up a new Payroll Category, (as there is none by default), create a new liability account to track child support, set the amount requested, tick on the category for the staff member, check it deducts correctly in a pay run, then later when paying the child support as employer, allocate back to the new liability account.

Here’s how

1.     Go to Payroll Command Centre > Payroll Category >Deductions Tab > New… OR… Cards Command Centre > Cards List > Employee tab > open employee required > Payroll Details > Deductions > Create New Payroll Category (or from Actions down below in earlier V19 etc).

MYOB Child support 1

2.     Set up with name (add employee as it is usually unique for them, and different for another who may also have Child Support obligations), allocate to a NEW Liability account you create, set the calculation to % or $ set amount.

MYOB Child support 2

3.     OK to save, then ensure this is now ticked on for that employee back in Deductions in his card (if you came from the Payroll Centre, click the Employee icon and tick the employee it relates to) > OK to close card.

4.     Start a sample pay run and ensure the calculation works.

MYOB Child support 3

5.     It should be 4% of the gross salary in our example – $769.23 x 0.04 = $30.769 – correct.

6.     WHEN Paying Support – allocate to the new Child Support Liability account.

MYOB Child support 4

Need help? Not sure? Call for FREE 30min advice / strategy session today!

                Call 0407 361 596 Aust and also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!


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Business Tax Tips – Is there GST on sale of assets?

Business Tax Tips – Is there GST on sale of assets?

Business Tax Tips – Is there GST on sale of assets?

Many business owners aren’t sure and wonder is there GST on sale of an asset (business asset)?

The GST law states a business must remit 1/11th of any income from a taxable supply. A taxable supply is any item not GST free or input-taxed. Examples of GST free items are exports, medical supplies, basic food, plain milk and water.

Examples of input-taxed items are interest and dividends. So if the business receives income from any item, other than these, GST probably applies even though the sale might not be within the normal trading practices of the business.

For example 1/11th of the price received for the sale of a business vehicle must be remitted to the ATO as GST. This is so even if the vehicle has been depreciated, purchased before 1st July 2000 or purchased brand new in 2000/2001 and no input credit was claimable on the purchase. The above also applies to a business selling off some of its plant.

Please note the above refers to income, not funds received by way of a loan. There are special rules regarding the sale of a business. These special rules apply to Goodwill, Plant, Motor Vehicles and Business Premises sold as part a business that is a going concern. It is important to consult an accountant before signing any contract to sell a business without paying GST as the special rules have a few traps.

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Need help? Not sure? Call for FREE 30min advice / Strategy session today!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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Business Finance 101 – The Accumulated Depreciation asset account

Business Finance 101 – The Accumulated Depreciation asset account

The Accumulated Depreciation asset account

The Accumulated Depreciation account is an asset account  on a company’s balance sheet that reports the amount of an asset’s cost that has been depreciated (written off) up to the date of the balance sheet. The asset’s original cost is recorded another asset account eg Motor Vehicle at Cost, Office Equipment at Cost, Plant and Equipment at Cost.

They are shown together with the Assets at Cost account debited when assets are posted there and the Accumulated Depreciation is credited each time that Depreciation Expense is debited (usually for small business depreciation is calculated at year end by the accountant). Since Accumulated Depreciation will have a continually increasing credit balance it is referred to as a contra asset account.

As an example let’s say that at the beginning of the current year a company’s asset account Plant & Equipment has a balance of $50,000 which will be the at-cost amount (net GST) from the previous year. From the time of purchase until the beginning of the current year the related Accumulated Depreciation account has accumulated a credit balance of $25,000 over the past 3 years. The Balance Sheet will also report the net of $50,000 less $25,000 leaving a Plant & Equip balance of $25,000 which will be used to calculate the next depreciation allowable. So at the end of the current year the company debits Depreciation Expense for $7,500 (if that is the calculation at 30%) and credits Accumulated Depreciation Asset for $7,500. At the end of the current year the credit balance in Accumulated Depreciation will be $32,500.

Start of Year       

Plant & Equip                 $50,000 is constant unless more equip purchased

Accum Deprec               -$25,000

Total Plant & Equip     $25,000

 

End of year

Plant & Equip                  $50,000

Accum Deprec                -$32,500                has $25,000 plus $7,500 (if that is the depreciation calculated)

Total Plant & Equip      $17,500

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support.

No-one offers as much!

Call and you also get FREE “Avoid these GST mistakes”

There’s 18 that the Tax Office see regularly – Get them right!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia

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