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Quickbooks – Upgrade and the new ATO Payroll Tax Tables for Year 2012-2013

Quickbooks Bookkeeping - Quickbooks - Upgrade and the new ATO Payroll Tax Tables for Year 2012-2013

Quickbooks Upgrade tax tables

The next tax year brings a number of legislative changes, especially with Payroll Tax Tables.

Some of the key changes taking effect on 1 July, 2012, include the removal of the Flood Levy and a new Tax-Free Threshold, which result in new Tax Tables for the 2012/13 Financial Year, as well as revised Leave Loading taxation arrangements.

Below you will find information about when the 2012/13 compliance updates for the new financial year will be made available and when to install them.

Scheduled release dates for 2012/13 Financial Year compliance updates

QuickBooks Hosted 2012/13 – 28 June 2012
QuickBooks 2012/13 Desktop versions – 28 June 2012
Payroll Premier 2012/13 – 26 June 2012

When to Install

After you have run your last Payroll in the 2011/12 Financial Year, and before you run your first payroll in the 2012/13 Financial Year.

Payment Summaries and EMPDUPE

Your 2011/12 Financial Year Payment Summaries and EMPDUPE file may be prepared before or after the 2012/13 Financial Year compliance update is installed.

If preparing Payment Summaries and EMPDUPE files prior to installing the compliance update, you must be using one of the following software releases:

  • QuickBooks Hosted 2011/12 R2
  • QuickBooks Hosted 2012/13 R1
  • QuickBooks Plus, Pro, Premier or Enterprise 2011/12 R2
  • QuickBooks Plus, Pro, Premier or Enterprise 2012/13 R1
  • Payroll Premier 2011/12

How to get the compliance update

From the release dates shown above:

  • QuickBooks Hosted subscribers will see a link to QuickBooks Hosted 2012/13 R3, which includes the compliance update, when you login to the QuickBooks Hosted servers.
  • QuickBooks Advantage members and QuickBooks Annual Licence holders will be emailed a link to download the QuickBooks 2012/13 Service Pack 1.
  • Payroll Premier Advantage members and Payroll Premier Annual Licence holders will be mailed your Payroll Premier 2012/13 upgrades.

No Advantage Cover? – You won’t be able to purchase payroll tax tables separately from Quickbooks. 

If you require assistance, give us a call! 0407 361 596 Aust (overseas drop 0 and add +61). We are here to help!

And see more great detail on the Quickbooks blog – http://online.reckon.com.au/Blog/tabid/124/EntryId/28/It-s-almost-Tax-Time-again.aspx

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MYOB – Upgrade and the New ATO Payroll Tax Tables for Year 2012-2013

MYOB Quickbooks Bookkeeping - MYOB Upgrade and the New ATO Payroll Tax Tables for Year 2012-2013

MYOB Upgrade tax tables

New Payroll Tax TablesAccountRight Standard or Plus version 19 with MYOB Cover, you’ll have a choice at June 30 between upgrading to the new generation of AccountRight software, or simply installing new payroll tax tables. Look for the notice within the software, or register for notifications via the Help then Updates in your MYOB.

ATO Tax TablesATO website says the new tables will be available Monday 25 June. You can download, save a copy or get printed copies from ATO offices, or some newsagents.

No MYOB Cover? You won’t be able to purchase payroll tax tables separately from MYOB. However third party tables are available, which I have tested against the ATO tables and work perfectly for me and several of our clients. To get more details and purchase for $58 – find out HERE.

Premier Upgrade DelayThe software upgrade to the new generation of AccountRight Premier has been delayed again, due 2013.

Next MYOB Service PackIf you have already upgraded to the new generation of AccountRight Standard or Plus 2011, the new service pack 4 is out now, and deals with a few more bugs and speed improvements.

M-Powered Services M-Powered Services are still not available in the upgrade.

Thinking to upgrade?

Goodnews is that the service packs have increased the speed of AccountRight significantly, and dealt with many of the more bugs as well.

Badnews is that the speed is still slower than AccountRight version 19 – and indeed, because this is an SQL product, the new generation of AccountRight will probably always run a bit slower than version 19 used to.

Speed ImprovementsDepends primarily on the processing speed and RAM on your computer, but also on the size of your company file and how many transactions you record daily. If you’re using an old computer, I’d definitely give the upgrade a miss. If you’re using a relatively new computer with some grunt and you already subscribe to MYOB Cover, we advise you install the new software and test speed using the Clearwater demonstration file. Enter a couple of transactions, and if this works OK, upgrade your company file, and try the speed with a few transactions in your own file. If the speed is good, then continue. If you’re unhappy with the speed, even if you recorded a few transactions, close the upgrade and return to AccountRight version 19.

If you require assistance, give us a call! 0407 361 596 Aust (overseas drop 0 and add +61). We are here to help!


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Year End Business Tax Tips – Act Now!

 

Business Tips websites small business Tax Budget - Year End Business Tax Tips – Act Now!

Year End Tax Tips

Top 10 for Business

  • Ensure superannuation contributions are paid by Wednesday 27 June to ensure they are received by the superannuation funds and are deductible this year.
  • Stock up on consumables and prepay subscriptions and rent. Note that businesses not in the “Small Business Regime” may only claim prepayments less than $1,000.
  • If vehicles are due for servicing, do this before June 30.
  • Provide staff bonuses as gift cards (gift cards less than $300 are tax and FBT free).
  • Write off bad debts before 30 June.
  • Attempt to sell slow moving and obsolete stock and when doing your stock take separate this stock to ensure it is costed at its recoverable value if this is less than cost.
  • Postpone the sale of assets that will earn capital profits. If you already have capital profits, consider selling investments that have unrealised losses.
  • Small businesses should delay purchasing new equipment if it costs greater than $1,000 and less than $6,500 until 1 July 2012. This will utilise the accelerated write-off available in the 2013 financial year.
  • Small businesses should delay purchasing any motor vehicles until 1 July 2012 so as to utilise the accelerated write-off of $5,000 available in the 2013 financial year.
  • Make the most of the $50,000 superannuation contribution limit for those aged 50 (as 2012 is the last year this will be available) and over or $25,000 for those under 50.

Top 10 for Individuals

  • Consider prepaying your 2013 Private Health Insurance before 30 June if you are affected by the means testing of the 30% rebate. Some health funds are accepting prepayments of up to 18 months and the savings are likely to be around $2,000 for those people who will lose the rebate in full.
  • Consider prepaying interest on geared investments, consumables and recurring bills
  • If you are eligible, make a tax deductible superannuation contribution. Contributions caps apply and tax deductibility is subject to eligibility requirements (see below for limits).
  • Make tax deductible donations to charity.
  • If you are considering selling capital assets in June, consider your Capital Gains Tax position and think about the possibility of selling in July to defer the tax payable. If you have made a capital gain during the year and have capital losses on listed shares, consider the merits of selling those shares so that the loss may reduce the capital gain.
  • Make an after tax super contribution to receive up to $1,000 in matched Government co-contributions, if eligible.
  • If you are considering undertaking repairs to a rental property this year, think about undertaking the repairs in June. If you are invoiced in full for repairs during June, the repairs are generally deductible in the current year.
  • Buy a replacement briefcase or other work related “tools of trade” less than $300 and claim the deduction this year.
  • Start a motor vehicle logbook prior to 30 June 2012 if you have done a lot of travel for work in the 2012 financial year or if you have not maintained one for more than five years.
  • Consider obtaining Private Health Insurance to avoid the Medicare Levy Surcharge in 2013 financial year. If you have turned 31 this financial year then you must also take out Private Health Insurance by 30 June to avoid higher premiums.


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Top Year End Tips – Maximise Your Tax Refund – Breakfast and Talk this Thurs – Cardinia

Small businesses should delay purchasing new equipment if it costs greater than $1,000 and less than $6,500 until 1 July 2012. This will utilise the accelerated write-off available in the 2013 financial year.
Small Businesses should delay purchasing any motor vehicles until 1 July 2012 so as to utilise the accelerated write-off of $5,000 available in the 2013 financial year.
Stock up on consumables and prepay subscriptions and rent. Note that businesses not in the “Small Business Regime” may only claim prepayments less than $1,000
If vehicles are due for servicing, do this before June 30.
Provide staff bonuses as gift cards (gift cards less than $300 are tax and FBT free)
Write off bad debts before 30 June

While enjoying a great breakfast, learn how to  Maximise Your Tax Refund – network and learn.

Presented by the Casey Cardinia referral Network (CCRN) come and hear how to Know your rights and stand your ground!Top Year End Tips - Maximise Your Tax Refund – Breakfast and Talk this Thurs – Cardinia xClick here to view this invitation and book

(and Book by clicking at the bottom of the page on the website)


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Another Asset Example – How to enter assets in the books

MYOB Quickbooks Bookkeeping - Another Asset Example – How to enter assets in the books

Se up Assets in the Books

Client wrote – my partner runs his own business and just recently purchased a van for the business.
My problem starts with how to enter assets in the books as he used his old car as trade in for part payment, but this car was not owned by the business.
So he paid $24,000 for the van
Less trade in of $14,000
Got finance for $10,000
Plus interest charges of $3000
I have tried working out what to do but as I am only new to all this it has started to do my head in.

Answer – I assume the $24k includes GST. I would suggest as follows (but depends on the facts re interest, loan repayments and GST etc)
Dr Vehicles (Fixed Assets) 21818.18 with GST code to raise GST Paid 2181.82
Cr Loan Company Name (long term liability) 13000.00
Dr Unexpired Int (will be negative long term liability) 3000.00
Cr Owners Equity 14000.00
The Loan Company Name and the negative liability Unexpired Int gives a net loan of $10k, which is all that is owing at present.
As repayments $xxx are made:
Dr Loan Company Name xxx
Cr Bank Account xxx
At end of each year, calculate and expense annual interest (or just let the accountant do it)
Dr Interest Expense xxx
Cr Unexpired Interest xxx
At the end of the loan the Loan Company Name and Unexpired Interest accounts will both be nil. But for the first year only some will have reduced it, as the total interest will cover several years.

Did the van cost include Rego and Stamp Duty? GST may not calculate correctly as per the loan statement, because in the software GST is calculated as 1/11th of the GST inclusive purchase price. Usually because of rego, stamp duty or insurance, GST is not 1/11th. One way to deal with this is to enter 2 amounts for the vehicle. Note however that rego and/ or insurance should not be included in the Fixed Asset amt and should be expensed instead.
Say rego was $300 (inc $25 GST), stamp duty was $700 (no GST) and $23000 was for the vehicle (inc $2090.90 GST). Then $300 (inc GST of $25) should be expensed as registration costs, $700 as Stamp Duty/Motor Vehicle costs (no GST) and $23000 (inc $2090.91 GST) as a Fixed Asset.

For another “How to enter assets in the books” see HERE


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July Carbon Tax could be good for business, but MYOB survey shows confusion – get a new perspective

Businesses MYOB Quickbooks bookkeeping consulting administration July Carbon tax could be good for business, but MYOB Survey shows confusion – get a new perspective

Carbon Tax good for business?

Putting a price on carbon could provide the catalyst for Australian businesses to lead globally. The July Carbon Tax could be good for business, but MYOB survey shows confusion exists for small business. It will surely strengthen their desire to leverage lower carbon alternatives, seeking smarter, more cost-effective ways of running their venture. There will be tangible advantages for businesses that take a proactive approach to reducing energy and material consumption, and lowering production costs in the wake of the new legislation.

A key point for business owners to note about the Carbon Tax legislation is that the top 500 polluters will be the ones directly paying the carbon price. For the balance of Australian businesses, there is no direct ‘tax’ or additional paperwork burden. Instead, the tax will come in the form of indirect increases in costs such as business travel, freight, waste removal and utilities.

MYOB recently surveyed business owners and managers on the contentious carbon tax. The March 2012 Business Monitor report uncovered widespread confusion about what a price on carbon means for them. Despite the tax’s imminent introduction, 42 per cent of small to medium business operators didn’t have a good understanding of the impact the tax will have on their business.
The burden of these cost increases is not intended to sit with small business. Consumers have been compensated for the increase in these costs and businesses should feel confident to pass these cost increases on to customers through higher prices. Of course those that can lower the use of these services could be at a competitive advantage, but no business should go backwards from this change in the form of taxation. The July Carbon Tax could be good for business, so don’t allow confusion – get a new perspective.

See more at Business Spectator HERE


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How do I show liabilities for the total borrowed including interest, not just the principle/asset amount?

MYOB Quickbooks Bookkeeping - How do I show liabilities for the total borrowed including interest, not just the principle/asset amount

Total Borrowed in Liabilities

To show liabilities for the total borrowed including interest, not just the principle/asset amount, one needs to raise the interest which has not been paid yet, but will be paid over the life of the loan.

The full amount of interest should be stated on the loan contract – see what it is.

Check what date we entered the asset/loan – Ctrl+Y then Accounts, then drop down the list and search for the account with the loan (#2 accounts), note the date

Open a new General Journal (In MYOB – Accounts Command centre > Record Journal Entry, In Quickbooks – Company (in Menu) > Make General Journal Entries, or older version Activities > Make Journal Entry)

Date is the same as the asset/loan transaction

Memo/Subject – “ (Asset name/or rego) Interest Total due on loan”

In the lower part of the transaction –

First account is the Loan account you just checked, for that loan (for the asset in question), enter $ Total Interest as CREDIT

Next line has a new account – drop down the account list, and scroll to the loans again (#2 accounts) decide on a number not used, after them and click NEW – create a new #2 account with name “Unexpired Interest Liabilities”, Tax code N-T, save, then back in the transaction it should be in the Journal at second line now, or search again and select this new account, enter as DEBIT, the same amount (should auto-fill) as the total interest. This will balance the transaction

Save the Journal.

The loan should INCREASE by the interest amount, liabilities for the total borrowed including interest, not just the principle/asset amount, but that will be offset by the amount in “Unexpired Interest”, as it hasn’t occurred until the interest is paid!

WHEN a payment is made it should all go to the Asset account for that asset – the interest will be checked and calculated at year end by your accountant and adjusted to claim the interest at year end in the Profit & Loss.

Repeat for each loan related to each asset

For more details on entering loans for assets click HERE