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Making Business Books and Accounting Come Alive! MYOB Reckon Quickbooks Training BAS Small Business


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Business Finance 101 – Excuses we use to not Improve the coming year with easy financial budget planning

Excuses we use to not Improve the coming year with easy financial budget planning

Excuses we use to not Improve the coming year with easy financial budget planning

Do you find you fall into any of these excuses to NOT improve the coming year? Eve Blackall covers 4 common excuses and offers 5 easy financial budget planning steps –

  • “I don’t know exactly what is going to happen next so how can I plan?”it doesn’t matter; put down what you would LIKE to happen – the benefit is a very clear way for you to establish your measures of success for the year to come.
  • “But my plans may change during the year!”never mind; you can adjust your budget to reflect new goals or challenges – the benefit is you can also clearly see the impact and outcomes of these changes and when, where and how to make management decisions to stay on track.
  • “What if I get it totally wrong to start with?”all the better; the benefit is you will learn more about your business is actually doing, instead of acting on what you assumed your business was doing.
  • “I don’t want to look foolish!”go right ahead and keep your initial budgeting drafts private; if only for a while. Eventually you will want to follow best practice and create your budget and plans involving your team, and maybe even your customers and suppliers. Start by building your confidence and skills first and keep it close to your chest if you like (just make sure you still peek at it often), then no-one but you will can judge how well you are going.

Eve also has simplified the 5 key steps to make business budgeting easier –

STEP 1 – Gather your Budgeting Calculating Ingredients

STEP 2 – Write down your Future Plans

STEP 3 – Sort out your Future Plans into Budget Headings

STEP 4 – Apply the dollars to your Budget Headings

STEP 5 – Do a Profitability Check

It doesn’t have to be complicated, or maths-ey! Even if you only write down 5 lines – one for income and four lines of expenses – you are starting a budget you can work with… All you need to do after that is to check your progress towards the goals (preferably weekly) but monthly will do, you will probably surprise yourself with the improved business and profits that result from just keeping your eyes on the prize!

See the full article

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 – Need the new Payroll Tax Tables for 2015-2016?

MYOB – Need the new Payroll Tax Tables for 2015-2016?

MYOB – Need the new Payroll Tax Tables for 2015-2016?

You will know you need the new Payroll Tax Tables for 2015-2016 because either MYOB software says you have out of date tax tables, or you know they are. (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). Tax tables become out of date 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. Users must upgrade to a new version or take out Cover under their support program to receive the latest ‘pay2myob.bin’ file (MYOB) to keep payroll compliant. (If you want to upgrade, email us – info@accountkeepingplus.com.au).

The special MYOB tax file 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.

With 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 to discuss your needs, or assist with upgrades and get extra bonuses – no obligation – 0407 361 596.

There is a Solution up to MYOB v19.10 – Third party updated tax tables available for $71.50 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 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.

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 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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Reckon/Quickbooks – Are you SuperStream Ready?

Are you SuperStream Ready?

Are you SuperStream Ready?

SuperStream, a new data standard for superannuation payments and contributions, is part of the government’s ongoing SBR (Small Business Reporting) improvements to the way business interacts with their agencies. The ATO explains it further – GO HERE.

SuperStream is designed to speed up the superannuation payment process saving business time. It will also allow the ATO to match lost super with individuals in the near future and make contributions to your fund much faster. Right now it could take up to a month before an employee will see a contribution made to their super fund, with SuperStream it could take only a few days.

  • Businesses with 20 or more employees will be required to submit via the new SuperStream method from 1 July 2015, and
  • Businesses with 19 or less employees from 1 July 2016.

You can view the Superannuation Data and Payment Standards (Contribution Transitional Arrangements (Amendment) 2014.

SuperStream requires you to collect extra information to make complying contributions and payments.

Some key things you’ll need to have, once your accounting software has been updated, include:

  • The Unique Superannuation Identifier (USI) code for commercial funds you make contributions to. When you next contact all the regulated funds that you make contributions to for your employees ask for their USI code, this code will replace the current SPIN code;
  • The Electronic Service Address (ESA) for Self-Managed-Super-Funds (SMSF’s). If you make contributions to SMSF’s on behalf of your employees, contact the administrator or ask the employee for the SMSF’s ESA for contributions. This only applies to SMSF’s and will usually be a web address for the service used to submit contributions to; and
  • The SMSF details. Check you have the correct SMSF name, ABN and bank account details.

For your employees ensure that records are up to date, including:

  • Full name and proper spelling,
  • Street address,
  • date of birth,
  • Tax File Number (TFN),
  • Super fund member number.

Reckon has created a partnership with NAB bank to process Super Contributions according to the SuperStream standards.  NAB offers NAB SuperPay for this purpose. 

The Super Data export file from the Reckon Accounts and Payroll Premier software only works with the NAB SuperPay gateway>

Special warning – opening the Reckon SuperStream Export File in a spreadsheet programme (eg Excel) will make a format change to one field in the file that will render it unusable by the Gateways.  The field is a date field which the ATO has mandated must be in “US date format”.  Opening the file in a spreadsheet will change the date format. A “default format” is available with the ATO’s SAFF – SuperStream Alternative File Format. Reckon is looking into developing this ATO SAFF to give you more options in exporting your super contributions data which can then be used with other providers. 

If you’re using Reckon Payroll Premier or Reckon Accounts business software you’ll be ready to meet the SuperStream changes this year.

  • For Reckon Payroll Premier users – the latest release of the program already includes changes to help you collect the right information and submit via the new standard! Before updating to this version, make sure you’ve completed all your contributions and pay runs for the end of the financial year. We’ve partnered with NAB to create the bridge between your business and the super funds used by your employees – if you’re looking to get setup right away get in touch with us.
  • For Reckon Accounts business software users – you can expect an optional program update to be made available later this year that includes necessary changes to help you collect the right information and submit via the new standard, these changes will also be included in Reckon Accounts 2015.

VIDEO Setting up Reckon Accounts for Superstream

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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Business Tax Tips – 10 EOFY (End of Financial Year) tips to prepare for 30 June

Business Tax Tips – 10 EOFY (End of Financial Year) tips to prepare for 30 June

10 EOFY (End of Financial Year) tips to prepare for 30 June

Time to plan for a good finish for EOFY and here are 10 tips to get started and prepare for 30 June.

1. Consider the ideal timing for asset sales

If you are thinking of selling a profitable asset this financial year, but are likely to earn a lower income in the next year 2015-16, it may be worth postponing the sale until after 30 June; however, if you expect an income windfall or higher salary from 1 July, it may be worth bringing the sale forward. As always, your decisions depend on your expectations for future asset prices, so don’t postpone a sale for tax purposes if you are expecting your investment to fall in value!

2. Get more from your salary or bonus

If you are expecting a pre-30 June bonus, you may be able to sacrifice your pre-tax salary or bonus into super rather than receive it as cash. As with the deductible contributions, this could reduce tax on your salary or bonus by up to 34%, and will allow you to take advantage of the contribution caps that apply in this financial year. Once your money is invested in super, tax on earnings is capped at 15%, which may compare favourably to investments held in your own name.

3. Pre-pay investment loan interest 

If you have (or are considering establishing) a geared investment portfolio, you can pre-pay 12 months’ interest on your investment loan and claim the cost as a tax deduction in the current financial year. This can assist to manage cashflow more efficiently, and potentially reduce your income tax liability this financial year.

4. Pre-pay income protection premiums 

If you are employed or self-employed, income protection insurance provides peace of mind about the security of your income in the event you are unable to work due to illness or injury. Premiums for this insurance are generally tax deductible; prepaying your annual premium prior to 30 June will allow you to claim a full year of cover in advance as a tax deduction.

5. Get a super top up from the Government

If you earn less than $49,4881 pa, of which at least 10% is from employment or a business, and make a personal after-tax super contribution, you could qualify for a Government co-contribution of up to $500. 

6. Boost your partner’s super and reduce your tax

If you have a spouse who earns less than $13,8001 pa, consider making an after-tax super contribution on their behalf, and you could receive a tax offset of up to $540. 

7. Use super to manage Capital Gains Tax

If you make a capital gain on the sale of an asset this financial year and earn less than 10% of your income from eligible employment, you may be able to claim a tax deduction for a contribution to superannuation, which could reduce or offset your capital gain. You will need to be eligible to contribute to superannuation (which means you are under the age of 65, or under 75 and meeting the work test), and be comfortable having your contribution preserved in super until you meet a condition of release (eg retirement).

8. Make tax deductible super contributions

If you earn less than 10% of your income from eligible employment (eg you are self-employed or not employed), you are generally able to claim a tax deduction for personal contributions to superannuation. As with super, you will need to be eligible to contribute to superannuation (which means you are under the age of 65, or under 75 and meeting the work test), and be comfortable having your contribution preserved in super until you meet a condition of release (eg retirement). If you claim a deduction for it, the contribution you make will be taxed at 15% in your super fund, so your tax saving will be the difference between your marginal rate and 15% – which could be up to 34%.

9. Review your portfolio

Review your portfolio and consider a strategic re-allocation of your investments. Consider portfolio allocations – is your portfolio heavily over- or underweight in specific industry sectors or stocks? Are you continuing to carry stocks that have exceeded your price targets or continue to under-perform – this may be an opportunity to re-balance. If you have an SMSF, now is the time to ensure your fund is invested in line with your documented investment strategy – your auditor will be confirming this after 1 July.

10. Offset capital gains with capital losses 

Generally, if you have incurred capital losses on your investments, you are able to offset these capital losses against any capital gains you have made. You can also use losses you have carried forward from previous years. Remember, income losses can only be offset against income; capital losses can only be offset against capital gains.

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 Tips – How Mistakes can turn to Profits

Business Tips – How Mistakes can turn to Profits

Business Tips – How Mistakes can turn to Profits

You’ve botched up on a job or following up a client who is now upset – and you don’t know whether to admit your mistake/klutz, service or forgetfulness. There are solutions when you know how mistakes can turn to profits – here are some tips –

Warren Harmer at Flying Solo writes 

I’d been getting a lot of telemarketers calling the business line, trying to convince me to buy everything from shares to advertising, or to extract donations for a variety of causes. So when I received a call from, (I hate to admit), an Indian chap who kicked things off with “the reason for my call today” I went in automatic not-interested mode and immediately asked “are you trying to sell me something?”

His response caught me off guard: “No I’m looking for help with a business plan”, then our call was cut off.

Feeling embarrassed, I stewed for the next hour, trying to justify why I need not admit my ill-judgement and call back. The self-talk was quite convincing, but I overcame it, swallowed my pride, called back and apologised.

The customer was very appreciative that I had called back and the conversation quickly moved on to his project. At a project meeting a few days later, he said he had no intention of calling me back, but when I made that call and apologised he said to himself “I gotta go with this guy”.

Ian Mills at Magic Dust web design, shares his observations 

So from my own experience and from the common stories I hear from being involved with over 4000 small business clients, I have compiled what I see as the five biggest mistakes people make when running a small business.

1. Underestimating the Amount of Effort InvolvedOne of the biggest frustrations I have in business is how simple and quick it is to have an idea, but how long and how much effort it takes for that idea to actually manifest itself as a living reality. In business,things seldom go exactly to plan, they take longer than expected and almost always require more resources to complete than originally planned. Being aware of this and cooperating with it allows you to plan more effectively and alleviate a lot of surprises and stress. Also when you’re running a small business you are responsible for everything so anything that hasn’t been delegated will always end up on your plate – this can accumulate to be a huge amount of “stuff.” So be realistic, be prepared, keep things as simple as possible and try to delegate or out-source aspects of your business as soon as you can.

2. Not Having a PlanUnless it’s part of an investment pitch I personally don’t think you don’t need a lengthy and highly detailed business plan, but you still must have a plan. Without one you’ll be making reactive decisions without perspective. So you need a focus, strategy and game plan to use as a guide and reference point. Use your plan to pull you out of the endless barrage of daily tasks, remember where you are going, course correct and prioritize if need be, and then get back into it. Have business goals at three months, six months, one year, two years and five years. Keep your plan simple and realistic so it can be easily revised as the needs goals of your business change.

3. Failing to be AgileJust because you have a plan doesn’t mean everything will go to plan. It is important to have a clear focus but it is equally important to be flexible. You need to be very mindful of what is and isn’t working. Quite often the business you start will not be the business that you end up with. It will morph and change. Keep your eyes open for the opportunities and the possible threats. Be willing to shift your focus into what is working. Holding on too tight to your original ideas or plans of how things “should” go and fighting for that plan may not be your best path for success. Be flexible and go where the money is, not where you want it to be. Among the advantages of being small is that you can adapt quickly. Be open to the feedback that you get from staff, customers and competitors, and be willing to course correct.

4. Not Hiring HelpKnow what you are good at and not good at, and be realistic about how much time you have. It can be easier to identify what we are good at but it can take real honesty and vulnerability to look at yourself and assess your own weaknesses. From my experience the greatest momentum I have had in my business was when I let go of what I wasn’t great at and hired people who are great. When running a small business there is a tendency to want to do everything yourself.  It seems logical to save money and keep control, but both of these motivations can be very limiting. When you are in touch and attuned to the reality of what you are good at and bad at you will be placing yourself and the business in the best possible context for success. Do what you do well and look to hire, or out source, in those areas that you are weak.

5. Not Keeping Your Bookkeeping in OrderIf you think this point sounds boring or unimportant you need to pay attention. Without accurate bookkeeping you are flying blind. Imagine driving a car and suddenly closing your eyes — it can be that dangerous. Whether or not you’re a numbers person, you need to make sure your bookkeeping and finances are kept in order, and then pay attention to the figures. Ultimately the success or failure of your business is measured by your financial records. The more accurate your records are the more informed you will be to make intelligent decisions about the business and to course correct when needed — whether that’s avoiding trouble or capitalizing on what’s working. You may have heard that “what you do after you fail determines your ultimate success,” so try and make your failures as small as you can.

Expect to make mistakes, but plan to succeed. Be focused but stay flexible. Be creative but be open to the experience of others.

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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MYOB – Beginner – I entered the wrong amount against supplier bills – how do I fix it?

MYOB – Beginner – I entered the wrong amount against supplier bills – how do I fix it?

I entered the wrong amount against supplier bills – how do I fix it?

Caller questioned meI have paid a supplier via online banking for the total on their statement, but when I went to record it in MYOB Account Right, I realised I had not deleted a bill I entered twice and it was included in the allocation of the amount paid – how do it correct this?

AnswerYou can correct it – the payment has to be deleted first – so:

1.     find the payment in bank transactions – easiest way is to use Find Transactions (Ctrl+Y) or from the lower part of any Command Centre;

2.     Open the transaction (white arrow on left);

3.     In the TOP menu click Edit then Delete Payment;

4.     Then go back and delete the un-wanted bill – and check all those remaining bills match the statement (if you agree with the supplier);

5.     Then re-enter the payment you made and CHECK BEFORE you Save that it is what it should be!

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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Business Finance 101 – The Cashflow Statement – Using an example of  how to construct the Statement

Business Finance 101 – The Cashflow Statement – using an example of  how to construct the Statement

Business Finance 101 – The Cashflow Statement – using an example of how to construct the Statement

Last month we explained what the Cash Flow Statement tells us. This month is an example of how to construct the statement so we understand where it comes from.

Three sources are used to gather information for the cash flow statement rather than from the Trail Balance –

1.     Comparative balance sheets provide the amount of the changes in assets, liabilities, and equities from the beginning to the end of the period

2.     Current income statement to determine the amount of cash provided by or used by operations during the period

3.     Selected transaction data from the general ledger provide additional detailed information needed to determine how cash was provided or used during the period – eg asset purchase

Three steps lead to preparing the statement of cash flows from these sources

Step 1. Calculate the change in cash:
This is the difference between the beginning and the ending cash balance from the beginning and end period on the balance sheet.

Step 2. Calculate the net cash flow from operating activities:
This procedure is complex. It involves analysing not only the current year’s income statement but also comparative balance sheets and selected transitions data.

Step 3. Calculate net cash flows from investing and financing activities:
All other changes in the balance sheet accounts must be analysed to determine their effects on cash.

A worked Example – Compiling the Cash Flow Statement

To illustrate a statement of cash flows we will use the first year of operations for Business Pty Ltd.

The company started on July 1, 2014, when it issued 60,000 shares of $1 value common stock for $60,000 cash.

The company rented its office space and furniture and equipment, and it performed services throughout the first half year.

The balance sheets at the beginning and at the end of the 6 months are as follows.

Table1a

The Profit & Loss or Income statement and additional information for Business Pty Ltd are –

Business Pty Ltd
Profit & Loss Statement
For the period ended December 31, 2014

Table 2a

Step 1. Calculate the change in cash:
The company has no cash on hand at the beginning of the period, but $49,000 at the end of 2014. This is an increase of $49,000

Step 2. Calculate the net cash flow from operating activities:
The company has no cash on hand at the beginning of the period, but $49,000 at the end of 2014. This is an increase of $49,000

First the net profit/income must be converted. Under generally accepted accounting principles (GAAP), most companies must use the ACCRUAL basis of accounting, requiring revenues be reported when earned/invoiced and that expenses be recorded when incurred/authorised. Net income can also include credit sales that have not been collected in cash and expenses incurred that have not have been paid in cash. Thus, under the accrual basis of accounting, net income will not indicate the net cash flow from operating activities.

To calculate net cash flow from operating activities, it is necessary to report revenue and expenses on cash basis and can be calculated via either a direct method or an indirect method

1. Direct Method: (also called the income statement method) –

Business Pty Ltd shows sales/revenues of $125,000. However, because the company’s accounts receivable increased during 2003 by $36,000, only $89,000 ($125,000 − $36,000) in ACTUAL cash was collected on these revenues.

The company also shows operating expenses of $85,000, but accounts payable increased during the period by $5,000. Assuming that payables related to operating expenses, the ACTUAL cash operating expenses were $80,000 ($85,000 − $5,000).

Because no taxes payable exist at the end of the year on the Balance Sheet, the $6,000 income tax expense must have been paid in cash during the year. Then the computation of net cash flow from operating activities is as follows:

Table 3a

“Net cash provided by operating activities” is equivalent of cash-basis net income or the CASH Profit & Loss.

2. Indirect Method: (or reconciliation method) –

starts with Net Profit/income and converts it to net cash.

Increase in Accounts Receivable―Indirect Method:
If accounts receivable increase during the year, revenues on an accrual basis are higher than on a cash basis because goods sold on account are reported as revenues. In other words, operations for the period led to increased revenues, but not all of these revenues resulted in actual cash, but appear as an increase in accounts receivable. Therefore the increase of $36,000 in accounts payable must be deducted from net income.

Increase in Accounts Payable―Indirect Method:
If accounts payable increase during the period, expenses on an accrual basis are higher than they are on a cash basis because expenses are incurred for which payment has not taken place yet. Therefore the increase of $5,000 in accounts payable must be added back to net income.

As a result of the accounts receivable and accounts payable adjustments, net cash provided by operating activities is determined to be $3,000 for the year 2003. This calculation is shown as follows.

Table 4a

Observe that net cash provided by operating activities is the same whether the direct or indirect method is used.

Step 3: Calculate Net Cash Flows from Investing and Financing Activities:

Finally, we need to determine whether any other changes in balance sheet accounts caused an increase or decrease in cash.

For example, an examination of the remaining balance sheet accounts shows that both common shares and retained earnings have increased. The common shares increase of $60,000 resulted from the issuing of common shares for cash. This is a receipt of cash from a financing activity and is reported as that in the statement of cash flows. The retained earnings increase of $20,000 is caused by two items:

1.     Net income of $34,000 increased retained earnings, less

2.     Dividend declared of $14,000 decreased retained earnings.

Net income has been converted into net cash flows from operating activities, as explained earlier. The additional data indicates that the dividend was paid. Thus, the dividend payment on common stock is reported as cash outflow, and classified as financing activity.

We are now ready to prepare the statement of cash flows. We start with the operating activities section. Either the direct or indirect method may be used to report net cash flow from operating activates.

The statement of cash flows under indirect method for Tax Consultation Inc. is as follows.

Business Pty Ltd
cash flow statement-Indirect Method
For the period end 31 Dec 2014

Table 5a

As shown, the $60,000 increase in common shares results in a cash inflow from a financing activity. The payment of $14,000 in cash dividends is classified as a use of cash from a financing activity. By coincidence in this example, the $49,000 increase in cash reported in the statement of cash flows agrees with the increase of $49,000 shown as the change in the cash account in the balance sheet.

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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