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MYOB – Quickbooks – BAS – Transactions to include at certain codes

Client emailed me after my visit setting up a motor vehicle asset:

“Just need to make sure the following is correct:

1.   When I do the GST report for the BAS it shows the full price, $23,922, for the van as the capital purchase. Is that right or should it just be the $4,000 deposit paid?

2.   It then shows this amount in the N-T Not Reportable section as a minus amount: -$23,922.

3.   The ‘total’ amount in the ‘Not Reportable’ section is showing: -$17,033.41.

Just checking as I don’t understand the minus amount in the N-T.”

MYOB Quickbooks BookkeepingAnswer:

1.   Yes the full $23,922 is reported as CAP capital purchase G11.

2.   The -$23,922 will be the other transactions in the journal we did to raise the asset and the finance in liability, I expect (N-T code is auto-added to the line when we add each line), and N-T is NOT reportable. If you click on the negative amounts in the GST Detail report, you can go to the transaction and see which line it comes from and determine whether to include or leave out. You would have to look at the GST Detail report to see what else is on the N-T part, eg. if bank charges or interest are there with N-T code, then they are usually included in the purchases.

3.   The -$17,033 looks to be the total N-T including the -$23,922, so as in 2 above, if there are bank charges and interest etc that are business expenses, then subtract the -$23,922 from the -$17,033 and add it to the purchases for the G10 amount.


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Quickbooks – Set Up has detected that this system should be re-started before installing – I did restart, but still get the error – what now?

 

Man with queston mark

Client Question

Client: While installing the new version, I clicked install and got:
“Set Up has detected that this system should be re-started before installing. You must restart your computer before you can install quickbooks.” I click > OK > Setup is not complete > Quickbooks could not be installed > Cancelling setup.

Solution: A possible solution is to follow the steps below:

1. From the Windows Start, choose Run…
2. Type in msconfig and click OK
3. A System Configuration Utility window will appear
4. From the General tab, choose Selective Startup
5. Untick all the options except for Load System Services
6. Click Apply > OK
7. A message will appear saying you must restart your computer for the changes to take effect – Click Restart

You should now be able to install your Quickbooks successfully.


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Cash Flow Booster Tips – Invoice Promptly

 

Cash Flow

Cash Flow Booster Tips

Most small service business owners are uncomfortable about asking to be paid. If you run a business, and you don’t invoice promptly AND collect payment promptly (which might be part of the reason for a cash crisis in the first place), there are many consequences:

  1. Your clients can quickly forget that they owe you.
  2. The less likely it is they will remember how much they loved your work and pay you promptly.
  3. They may also conclude that you do not expect quick payment and will take their time in sending in their money.

Some ACTION solutions:

  1. If possible, present your invoices at the time services are delivered.
  2. Send your invoice by email speeds the process up even more.
  3. If issuing invoices immediately is not practical in your business, be sure to issue your invoices weekly, or at least twice per month on designated days, such as on the 15th and the last day of each month.
  4. Do this like clockwork – it will help to even out your cash flow over the long haul.
  5. Create the habit – invoice quickly and invoice often.


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MYOB – Tax Calculation incorrect compared to ATO Tax Tables

 

MYOB

Tax Calculation incorrect compared to ATO Tax Tables

Things that should be checked:

  1. That the correct tax table has been selected. Card File command centre > Cards List > Employee Card > Payroll Details > Taxes > Tab Table;
  2. That no “Extra Tax” amount has been entered against the Employee’s card. Card File command centre > Cards List > Employee Card > Payroll Details > Taxes;
  3. That none of the wage categories are incorrectly marked as being Exempt from PAYG calculations. You can see these settings by going to:
    Payroll command centre > Payroll Categories > Wage Category > Exempt button. Anything that has a tick next to the PAYG tax in this screen will not calculate as part of PAYG amounts;
  4. That they aren’t salary sacrificing, either for a novated lease, superannuation, or any other reason that is usually tax exempt, as this would vary the amounts of tax paid. If they are engaging in one of these methods of salary sacrifice, please make sure that the deduction categories are correctly set up to be exempt from PAYG calculations;
  5. That the pay frequency selected in MYOB matches the actual pay frequency for the employee. (If they are paid weekly, they should have weekly selected on their card.)  Card File command centre > Cards List > Employee Card > Payroll Details > Wages > Pay Frequency.


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Business Tax Tips – Tax invoices – receipts what do I need to keep especially if under $75?

(As well as the info below,

for an UPDATED VERSION of this post and the latest ATO info with updated links in Feb 2017, go HERE)

(Some links below have been removed by the ATO since writing)

Tax invoices are important documents for the operation of the GST system.

Reading the ATO website, we conclude however that in some circumstances taxinvoices are NOT required to be kept – you must have CASH receipts/invoices, but purchases under $75 ex GST ($82.50 inc GST) made on credit cards and bank statements can be legitimately claimed. This is how we determine this:

The ATO website explains (at Valid Tax Invoices and Credits):

  1. Tax invoices must contain certain information to be valid. These requirements are detailed (see What is a valid tax invoice?);
  2. You must issue a tax invoice for any taxable sales you make of more than $82.50 (including GST), where the purchaser requests it;
  3. If you make taxable purchases for business purposes, you can use the tax invoices you receive to claim the correct amount of GST credits for those purchases;
  4. You must also keep your tax invoices and other GST records for five years;
  5. Your supplier must be registered for GST before you can claim a GST credit on a purchase.

Then the ATO website gets tricky in the next page Claiming GST credits:

  • To claim a GST credit for purchases that cost more than $82.50 (including GST), you must be registered for GST and have a valid tax invoice or recipient created tax invoice (RCTI). If you use an incorrect or incomplete tax invoice to claim a GST credit, the GST credit may not be allowed.
  • To claim GST credits for purchases that cost $82.50 or less (including GST), you must keep documents such as cash register dockets, receipts or invoices to support your claims. (This seems to conflict with point 2 above.)

And further at How does the ATO deal with missing or invalid tax invoices? They go on:

“We issued a practice statement that explains when we will treat a document that is not a tax invoice as a valid tax invoice.

If you claim a GST credit without a tax invoice or with an invalid tax invoice, we may either:

  •   Treat your tax invoice as being valid;
  •   Treat some other document as a valid tax invoice.

Our decision to allow your claim will depend on the details you provide.”

The Practice Statement is PS LA 2004/11 and guides on the exercise of discretion that officers can use. At point 12 it states you cannot claim an input tax credit if you do not hold a tax invoice or adjustment note (refund) BUT several exceptions to the rule are listed.

Notably: “If the value of the taxable supply is $75 or less or the amount of the decreasing adjustment is $50 or less”.

Conclusion?: This means tax invoices are NOT required to be kept in some circumstances– you must have CASH receipts/invoices, but purchases under $75 ex GST made on credit cards and bank statements could be legitimately claimed – so keep what you can and staple small receipts to an A4 sheet or put in a plastic A4 sleeve for ease of filing (say per month), but don’t worry about those you have misplaced.


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MYOB Premier – “Payroll Incomplete..load your tax tables” 19.7 Compliance update and Tax Tables from earlier versions 19.5 or earlier

You keep getting the following message – “You must install the compliance update to change your version to v19.7 before you can load the new tax tables.”  Please go to the Help Menu > About Account Right screen.  If this screen doesn’t say 19.7, then you need to update immediately to be able to process payroll correctly.

If you are using 19.5 or before you will have to upgrade to 19.6 before you can run the 19.7 update.  You can also download the full installer for 19.7 in a .zip file, however, you have to uninstall the previous V19 installation before installing 19.7.

 You can download your update from one of the following 3 options:
 1) Help menu > Updates > Register for Updates (need just your Serial Number – from: Set Up>Company Details) then again Help menu > Updates > Check for Updates, wait for a window to appear, see if you get the Compliance green message, tick it and click “Instal” in the lower part of the screen

2) Enter your serial number at https://my.myob.com/downloads

3) Log into the self service portal at http://my.myob.com.au/ and go to My Products > My Downloads to download the correct update or installer.

If after you installed Account Right premier v19.7 and load tax table, tax table revision is 1/07/2012 but the following message keeps displaying:

MYOB Quickbooks Bookkeeping - MYOB Premier – 19.7 Compliance update and Tax Tables from earlier versions 19.5 or earlier

MYOB v19.7 & Earlier Versions

Are you getting – “The setup for payroll is incomplete. The next step is to load your tax tables.” with Premier?

If you are receiving this message, it means 1 of two things:

1) Not all of your computers are using v19.7, please make sure that each computer has v19.7 showing in the Help menu > About Account Right screen.

2) That on at least one of your computers, the user does not have Full Access to the C:\Premier19\ folder, and all files contained inside of it.  Please ensure that all users of Premier have sufficient user privileges for the installation folder, or consult with your IT support person to have sufficient privileges added to the relevant accounts.


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MYOB 2011 – An application operation has timed out would you like to retry operation?

Businessman with questionIt seems that occasionally, without warning, you may get the following error – “An application operation has timed out would you like to retry operation?”. But clicking Retry doesn’t seem to work.

Solutions

  1. Close down computer or re-start – has worked at times.
  2. Opening your Windows Control Panel >> Administrator Tools >> Services. Once on the Services Window, scroll down to MYOB AccountRight Server 2011.1, Right click and select to “Start Service”.