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


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Bookkeeping – 6 Steps to get Organised and Systemised

6 Steps to get Organised and Systemised

6 Steps to get Organised and Systemised

The majority of small business owners struggle with the account keeping/bookkeeping/record keeping for their business – most people don’t like it or are confused by it! But the law is that every business must maintain accurate and timely (up to date) financial records (books). Like many things in life – better to face it – regularly and with as less stress as possible – and it IS possible!

Here are the 5 ways to start –

1. A set time each week to DO the books

Be strong and disciplined! Don’t keep saying you will do it later – do SOME each week

2. Separate business bank account for business earnings and expenses

It is very important to keep your private transactions separate from your business transactions. It makes it easier for your accountant as well as yourself!

 3. Software that suits your business

If you are unsure which software to select, contact a bookkeeper, business consultant or your accountant who can better advise you before you buy There are desktop and cloud solutions. With many software moving to the cloud, one key benefit is that you can access your financials anywhere, anytime or have your bookkeeper and accountant check information for you.

Your business datafiles will always be backed up regularly in the cloud. However, always ensure you keep backups of your financial data as an added security measure. With desktop software, you will have to get into a habit of regularly backing up your files.

 4. Get all your tax and compliance obligations right

All businesses are required to register for an ABN, and if your turnover is more than $75,000 then you must apply for GST registration. You must also keep receipts for all acquisitions in order to claim on your expenses. If you employ staff, you must also register for PAYG withholding Tax. This is where you pay staff and withhold some tax on their behalf.

You are also obliged to complete and lodge monthly/quarterly Business Activity Statement (BAS) with the ATO. With the appropriate accounting program and setup, you can have this information at your fingertips. This way you create systems to help you streamline and automate your business processes for you to stay compliant.

 5. Keep your receipts

The ATO requires you to keep records for a minimum of five years.  The records you are required to keep and have accessible upon request are:

  • Invoices and receipts you provide for sales or services rendered by your business.
  • Invoices for goods, services or other business acquisitions purchased for your business.
  • Records of payments made to employees plus other organisations on their behalf like Superannuation funds and PAYG tax.
  • All financial statements including profit and loss statement and balance sheet.
  • Tax Return information.
  • Bank accounts and credit card statements
  • Stocktake records at end of financial year and asset register etc.
  • Anything else with a monetary value to the business

You could create digital files on your computer to store this information or keep a well organised filing cabinet.

6. Get a great account/book keeper?

As your business grows you may need to engage the assistance of a great bookkeeper, which is also tax deductible. Hiring a bookkeeper helps you focus on growing your business while ensuring your record keeping is up to date. Ask us to give a quote and the extras such as yearly analysis and graphs included for FREE in our service – want to see a sample – email for a copy – info@accountkeepingplus.com.au.

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – no-one offers as much!

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

You will also get a FREE set of TEMPLATES to Organise your records – including a monthly check-sheet for the whole year! FREE, no obligation


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Cashflow Tips – 5 ways to get more out of your accounts/bookkeeping or bookkeeper (or be a better bookkeeper)

Cashflow Tips – Remember to Pay Extra Super – 9.25% from 1 July 2013

Cashflow Tips – 5 ways to get more out of your accounts/bookkeeping or bookkeeper (or be a better bookkeeper)

Do I have the most suitable software for the business needs? Should I upgrade to the next level or another brand? We can help you for FREE – call for a chat!

  1. Expenses we be reduced? What areas of expenses have increased, and are there better deals to reduce costs?
  2. What areas/products of sales are growing? Can we see a trend in products or categories that are underperforming? What about the best performers – should we focus on building them more?
  3. Checklist of the bookkeeping tasks so we don’t forget? Do you have a checklist – there can be at least 10 and more tasks each week/month – invoicing, paying suppliers, payroll, super, Workcover, collating customer payments, reconcile bank statements, reconcile credit cards, petty cash – if you want a template to track the main bookkeeping tasks, call or email info@accountkeepingplus.com.au
  4. Better Reports for more insight? What other reports does the software offer? I find that exploring other reports and seeing what customization is possible can reveal new reports and insights that help make better decisions!

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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MYOB/Reckon – What do I do if client has paid but the cheque is dishonoured by the bank?

MYOB/Reckon – What do I do if client has paid but the cheque is dishonoured by the bank?

MYOB/Reckon – What do I do if client has paid but the cheque is dishonoured by the bank?

When your client (or nemesis J) has paid by a cheque and it has bounced… dishonoured by the bank – how do you record this in your bookkeeping?

Usually there will be a Credit deposit and Debit when the cheque is dishonoured, so they will cancel each other out and are NOT worth entering at all.

Re-invoice the client for the bank fees you have been charged, using a service type invoice. Use the N-T or FRE tax code. Send it with a friendly note that the cheque bounced and these are the fees you have been charged!

When the cheque is presented (or you receive another cheque) allocate it to the correct invoice.

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 – The importance of keeping proper records and evidence when the ATO comes calling

Business Tax Tips - The importance of keeping proper records and evidence when the ATO comes calling

Business Tax Tips – The importance of keeping proper records and evidence when the ATO comes calling

Smart Company’s Terry Hayes reminds us of a key basic tax tip obligation of keeping proper records and evidence of the claims, when he summarises key results of an appeal against GST and income assessments –

A recent case in the Administrative Appeals Tribunal has again shown the importance of having proper records and evidence when the Australian Tax Office comes calling.

The taxpayer in question was audited and adjustments were made by the ATO. The taxpayer took the matter to the Tribunal but could not prove his case.

Read more: “Mice ate my tax records” just doesn’t cut it!

The AAT disallowed the taxpayer’s appeal against GST and default income tax assessments, although it set aside an administrative penalty for one of the years in question.

In 2008, the ATO audited the tax affairs of the taxpayer’s family and the companies they controlled. The family business in question was a business of property development and construction. The Tribunal said the audit “did not end well” for the taxpayer. As a result of the audit, the Commissioner was not satisfied that all of the taxpayer’s income had been disclosed nor that he had been carrying on an enterprise for GST purposes, which had the effect of calling into question the input tax credits he had claimed on his GST returns.

In 2012, the Commissioner made assessments of GST net amounts so as to claw back the input tax credits the taxpayer had claimed, plus default income tax assessments of the taxpayer’s taxable income for each of the income years 2003 to 2008 inclusive. The Commissioner had earlier made amended assessments for the income years 2007, 2009 and 2011.

The taxpayer faced tax and penalties of almost $2 million.

The taxpayer objected against the various assessments of tax and penalty. All of the objections relating to primary tax were disallowed, with the exception of one of the objections dealing with the 2007 income year, which was allowed in full. The objections relating to administrative penalty were disallowed, with the exception of the 2011 year, which was allowed in part.

The taxpayer then applied to the Tribunal for review of the Commissioner’s objection decisions.

The taxpayer was represented in the proceedings by his sister who, on his behalf, provided 55 lever-arch folders of documents to the Tribunal. Deputy President Frost of the AAT said it seemed that the taxpayer’s sister considered that those folders would shed light on her brother’s activities during the relevant period, including how he generated his income, what expenses he incurred in relation to those income-generating activities, what supplies he made for GST purposes and to whom, and what acquisitions he made and from whom, so as not only to attack the various assessments as wrong, but also to establish how they could be made right. The Tribunal, however, did not find the documents to be as helpful as hoped by the taxpayer.

The taxpayer himself did not provide a written statement to the Tribunal to explain his activities during the relevant periods or the sources of his income, and he did not give oral evidence either.

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

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Reckon/Quickbooks – Invoices posting to bank?

 

Reckon/Quickbooks – Invoices posting to bank?

Reckon/Quickbooks – Invoices posting to bank?

From the Reckon Australia Community Forum -

Dan emailed  I am using accounts hosted and when I am creating customer invoices it is automatically posting the amount of the customers invoice into the payments section of my bank account. It has just started doing this tonight and it has done it for the last 4 invoices I created this evening. I have tried deleting the invoices and re-creating but the same problem keeps re-occurring. 

Solutions

Hi Dan,

You need to check the item you are using.

There is a good chance it is pointing directly to your bank account.

Kind regards,

Sally McIntosh (Sally@samsolutions.com.au)

Dan replied - Thanks Sally, you are quite correct, the items concerned were posting to the bank account not to the sales account, due to an error when the items were originally created.  Problem caused by a faulty (over-tired) human interface !!  Regards Dan

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 – Customer Card – Export/import Price Level Missing?

MYOB – Customer Card – export/import Price Level missing?

MYOB – Customer Card – export/import Price Level missing?

Client on MYOB Community Forum emailed - Hi there, I have just started using Accounts Right Standard 2014.4 and imported all data from excel . . . successfully.  The support notes list the Customer Item Price Level field in the Cust file specs but, when I export from MYOB, this field is not in the template file. I am in the process of manually adding to 400 customers but, would like to know why this field is not available.

Answer As mentioned, …the option to export the item price level field is included in the AccountRight Plus files and higher. It is currently not available for export or import in AccountRight Standard company files. I’ve spoken with the support team here, we believe that it should be included in the AccountRight Standard company files. As such have forwarded the fact that the field is missing to the program developers to investigate and correct in a future update.
Currently the workaround would be to import the cards without the item price level field and then manually it after the fact. If you are transferring the cards between file you can run the Reports>>Cards>>Card List Detail report to give you the Price Level for a card.
The reasons why it is probably missed is due to the fact that AccountRight Classic, i.e. version 19, the price matrix structure was available in AccountRight Premier or higher. So AccountRight Standard version 19 never had that option therefore when the program was updated to AccountRight Live it was decided to add in that feature to AccountRight Standard and Plus. It would seem that the field has never been set to be an exportable field for AccountRight Standard however it was for AccountRight Plus.

Kind Regards, Steven (Moderator)

Note There is a great PDF summary of what fields will/won’t export from the different Standard, Plus etc versions – see further down in the Forum on this topic, by Tazinx, to get the pdf!

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

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


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Business Tip – Tips to Avoid Burnout

Business Tip – Tips to Avoid Burnout

Tips to Avoid Burnout

Here are some timely reminders from John Corias at Flying Solo that we business people can consider in order to avoid burnout –

Use tools and outsource

One thing that many micro business owners have in common is the realisation that running a business is harder and more involved than first thought. To make life easier, it’s important to use all the available tools at your disposal, as well as outsource wherever you can. Perhaps this means using Xero to automate debtor chasing, pre-scheduling social media posts or using experts so you can focus on your own expertise. Outsourcing also has the added benefit of getting an outsider’s viewpoint on your business. New ideas can be invaluable. If you think you can’t afford to outsource, consider that outsourcing can help to grow your business.

Vacations

Too many business owners are afraid of taking leave in case their businesses fall apart. But that situation is extreme. Getting away from your business, clearing your head and coming back with a fresh perspective can reinvigorate your passion and inspire new ideas. Not only that, spending time with family, aside from the obvious benefits, can also have real tangible health benefits.

Systemise

Creating documented processes for as much of your business as possible gets your business out of your head.

A great tip for the newbie business owner is to start this process from the very outset, even if you think you don’t need it yet. Keep the unnecessary out of your head and in documented procedures. Creating documented processes also makes it easier for you to take holidays, because you know that your process will be followed when you’re away.

Partner/sounding board

For the soloist, burnout can come earlier than for small business owners who have partners and staff to bounce ideas off and share the load. Every solo business owner must have a sounding board, such as a business coach, mentor, accountant and business support group. Tip: It’s preferable to find someone who doesn’t have a financial interest in your business, as this may cloud their judgement in terms of making changes that only affect themselves.

Stick to what you know

Our final point is to not forget the primary reason you started your business. Don’t let yourself be bogged down in the administrative and non-core aspects, it’s a guaranteed path to burnout.

Leave the burnouts to the young guys in loud cars, and focus on working smarter in order to enjoy a healthier business and life.

What tips do you have to avoid burnout? Comment below!

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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