Bookkeepers and Business Owners! – Training you – Solving Problems – Or We do your books for you!

Bookkeeping – Train, Troubleshoot or we do the books for you! MYOB Reckon Xero & Set Up

1 Comment

Business Finance 101 – What is the Accumulated Depreciation account and why is it an asset?

What is the Accumulated Depreciation account and why is it an asset?

What is the Accumulated Depreciation account and why is it an asset?

The Accumulated Depreciation account is where a company’s balance sheet reports the amount of an asset’s cost that has been depreciated (written off) as of the date of the balance sheet. The asset’s original cost is recorded in the asset account, eg. Motor Vehicle at Cost, Office Equipment at Cost, Plant & Equipment at Cost. They are shown by having the Assets at Cost account which is debited when assets are posted there and the Accumulated Depreciation is credited each time that Depreciation Expense is debited. Since Accumulated Depreciation will have a continually increasing credit balance it is referred to as a contra asset account. The increase is usually done at year end when the accountant calculates the amount that can be claimed, and you should adjust the Accumulated Depreciation by the amount calculated.
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 $70,000 which will be the at-cost amount (after 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 $45,000. The Balance Sheet will also report the net of $70,000 less $45,000 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 for $7,500. At the end of the current year the credit balance in Accumulated Depreciation will be $52,500.

Start of Year
Plant & Equip                             $70,000          is constant unless more equip purchased
Accum Deprec                          -$45,000
Total Plant & Equip                  $25,000

End of Year
Plant & Equip                             $70,000
Accum Deprec                           -$52,500        has $45,000 plus $7,500 (if that is the depreciation calculated)
Total Plant & Equip                   $17,500

Got questions? – We love to find answers! – Call us for FREE help!   0407 361 596


Leave a comment

Quickbooks – Adjusting Inventory when Receiving Stock

Quickbooks – Adjusting Inventory when Receiving Stock

Quickbooks – Adjusting Inventory when Receiving Stock

Client called – When I receive stock, to add to existing inventory, what is the best way to update the on-hand count – do I click on item from inventory list, click edit, then change the on-hand amount? Or do I always do a purchase?
Answer – never change the on-hand quantity in the item record.
When you receive new stock, you enter via Purchasing > Receive Items.
If you need to adjust your existing on-hand quantities, use either Inventory > New Quantity Adjustment or Inventory > Start Physical Inventory. You can print a physical stock worksheet from the second way.
If you haven’t been receiving your stock with purchasing, it is likely you need to adjust your average cost. You can do that at Inventory > New Cost Adjustment.
Got questions? Comments? Join the conversation, or call us direct in Australia 0407 361 596

Leave a comment

Business Tax Tips – 3 New Rules – Better asset deductions, motor vehicle and simplified pooling

Better asset deductions, motor vehicle and simplified pooling

3 New Rues – Better asset deductions, motor vehicle and simplified pooling

Are you aware of the new ATO rules for business asset deductions, motor vehicle accelerated deductions, and simplified pooling that are current in the 2012-2013 income year?

1.     Higher Asset write-off Threshold – $6500

Most depreciating assets up to $6500 can be FULLY claimed as an expense deduction against income (write-off), which is up from the $1000. The Australian Tax Office (ATO) gives an example – A camera is purchased $5900 and a high resolution printer $4,500. Both are fully deductible as expense in 2012-2013, used entirely for the business, as they come under the $6500 threshold.

2.     Accelerated deduction for Motor Vehicles

Purchase a motor vehicle for the business (or the proportion for business use) and claim an immediate $5000 deduction. The remainder of the cost can be claimed through the General Small Business Pool at 15% for the first year, then 30% for later years. An ATO example is purchasing a ute $37,080, used 50% for business. The calculation for depreciation in 2012-2013 is $5000 + 15% x ((50% x $37,080) – $5000) = $7,031. Note the first $5000 is also immediately claimable as well as the $7031.

3.     Simplified asset pooling

Assets over $6500 can be pooled under simplified depreciation rules and deducted at a single rate 30% each year, except for newly acquired assets – they are deducted at 15% (half the pool rate) in the first year. The former Long Life Pool (no longer exists) is rolled over as the opening balance of the general pool for 2012-2013 and depreciated at 30% instead of the former 5%.

Interestingly, the ATO site at Simplified Depreciation Rules is still dated 28 June 2012 and has the old $1000 threshold, but the new ATO site advertised on the bulletin that came with the latest BAS statements – has the latest new rules.

Tell us which will apply to your business and whether you can see a benefit for your business – comment now.

Leave a comment

MYOB – “DataException” Error in Payroll in Account Right Plus 2012

MYOB – “DataException” Error in Payroll in Account Right Plus 2012

MYOB – “DataException” Error in Payroll in Account Right Plus 2012


MYOB has prepared an explanation and a special tool to help resolve this issue.


Get the tool (further down under “Disclaimer” at  

Note: This repair tool should only be used if the above DataException error occurs when processing, editing, or deleting a payroll transaction.

The steps they give are –

To run the repair tool, complete the following:

  1. Right-click the file attached to the bottom of this support note (AccountRight Payroll Data Exception Repair and choose to save it to your Desktop.
  2. Double-click the downloaded file. The contents of the ZIP file will be displayed.
  3. Double-click the file AccountRight Payroll Data Exception Repair.exe.
  4. Click Yes (or Run) to the displayed warning. The AccountRight Data Exception Repair Tool will launch.
  5. Click Browse and navigate to the location of your company file. By default this will be in the following location:
  6. Windows Vista, 7 or 8: C:\Users\Public\Public Documents\MYOB\My AccountRight Files
    Windows XP: C:\Documents and Settings\All Users\Shared Documents\MYOB\My AccountRight Files
    Note: If you have moved the location of your AccountRight library, navigate to this location instead.
  7. Click your company file then click Open.
    Click Repair.

Leave a comment

Business Finance 101 – What are Non-Cash Expenses?


What are Non-Cash Expenses?

What are Non-Cash Expenses?

Non-cash expenses are expenses that report on the Profit & Loss / Income Statement of the current period, but no cash payment during the period has actually occurred.

One example of a non-cash expense is depreciation. For example, if a company purchased equipment on October 31, 2011 for $8,000 cash, depending on the allowed proportion by the ATO, it could have a Depreciation Expense of $800 in each of the next 10 years. Since there is no cash payment in any of those years, each year’s $800 of Depreciation Expense is known as a non-cash expense.

Another example in a large company is amortization of bond issue costs. Perhaps a company incurred costs of $250,000 for professional fees and registration fees in order to issue $10 million in bonds. If the bonds will mature in 10 years, the corporation will defer the $250,000 of bond issue costs to the balance sheet and will then amortize the cost (send part of the cost to expense) at a rate of $25,000 per year. In each year of the bonds’ life the corporation’s Profit & Loss will report $25,000 of bond issue costs expense which will be a non-cash expense.

Leave a comment

Quickbooks – Online Freezing Using Citrix XenApp


Quickbooks – Online Freezing Using Citrix XenApp

Quickbooks – Online Freezing Using Citrix XenApp

Finding your online hosted Quickbooks freezes at times? And does it eventually go to “Not Responding” Mode? And you need to use Task Manager to exit? And when you try to login again you have to log-off the users from the XenApp?

Some possible solutions from the Citrix forum –

Make sure the Latest rollup pack is Installed on the XenApp server. This behaviour will occur in certain cases like:

1. When the concurrent logon limit to the server is high;

2. Network congestion;

3. Windows updates also will cause issues some times, install MS updates from CTX129229 if relevant;

4. Check if this is happening over ica or from rdp as well. try to rdp to the server from one test user and check;

5. If the app is there in multiple servers , check if it is same from all servers or not. co relate the installation and registry with working server for app;

6. Try to give user server desktop through citrix and give a try;

7. One you kill the app process check which process are holding the session on the console/user-session/process;

8. Check if the server resources like cpu and ram usage normal time and while hung check if any process with hung user name is consuming resources;

9. Try to run a process monitor during off hours and test with one user and check what happening on server when the session is Hung – this will consume time, But it helped me in many situations;

10. Update HRP01 for XenApp 6.5.

To read the post go HERE