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

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Cash Flow Tips – Future Super Payments


Cash Flow Tips – Future Super Payments

Cash Flow Tips – Future Super Payments

The effect of one of the Government’s requirements for superannuation into the future is that all employers may eventually have to use an “approved” superannuation clearing house to make the payments for employee superannuation.

You may be aware of one of the clearing houses in use currently –  the Medicare Superannuation Clearing house (for less than 20 employees) and MYOB M-Powered Super and there are other commercial offerings now.

From 1 July 2014 it is proposed that employers with more than 20 employees MUST use the clearing houses.

From 1 July 2015 all employers.

There is a long way from this working so keep an eye out for developments.

From the ATO –



MYOB & Quickbooks – Adding Credit Card Surcharges to Invoices

MYOB and Quickbooks - Adding Credit Card surcharges to Invoices

Adding Credit Card Surcharges to Invoices

A client emailed, concerned about the extra Merchant Charges they pay when clients pay by credit cards. There are a number of ways to deal with it depending on the type of layout you use.

  1. First, are there only specific customers who pay by credit card? If so, you could create a second invoice template and add the CC charge into it, then use the correct template to each customer.
  2. Or, you could add the surcharge into your standard template (say after a subtotal) but then you’d have to credit back the surcharge if the customer paid using another method. Or have a message at the bottom to ignore the charge if not paying by credit card.
  3. Another option is to create a large, bold text message box stating there is a surcharge for credit card payments and then show an example calculation after the text which would work out a set percentage of their invoice and actually show the amount that is extra.
    Your bookkeeper can make changes like these to your software templates, or call us to help!

What do you do?

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Business Tax Tips – Good Petty Cash Management for Business – Setting Up and Recording in the Accounts

Good Petty Cash Management for Business – Setting Up and recording in the accounts

Good Petty Cash Management for Business – Setting Up and recording in the accounts

Most small businesses make small cash purchases. If yours does, set up a Petty Cash Box to keep control of those purchases. Get yourself a metal cash box, go to the bank and withdraw say $100 – ask for it in a selection of notes and coins.  The value of this box should remain at $100.00 at all times.

When you, or an employee, need to buy a small item, eg. a notebook at the local office supply store for $7.00, if you take $20 from the Petty Cash Box (good to use one of the plastic money bags the bank uses to bundle coins to hold the cash), when you get back to the office you will put your receipt and any change in the box. Now you should have $93.00 in notes/coins and one receipt for $7.00. The value of your box is still $100.00.
You continue using the Petty Cash Box in the same manner until you get low on cash. Then replenish the box by withdrawing cash at the bank for either enough to get back to $100 , or the full $100 if all is spent.

In your accounting records, there should be a credit from the Bank Account, and a debit to the Petty Cash Account. Then record each expense going by the receipts, crediting the Petty Cash Account (“spending” the cash) and debiting the relevant expense account, eg stationery/office supplies, fuel, staff amenities (tea, coffee, etc).

If there are several receipts for the same expense type, eg. staff amenities, you could total them all ,staple together and record the total in the accounts, with a memo such as “total fuel several receipts”.

What tips do you have? Share them with us here!

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Paid Parental Leave Scheme – What is it? And how do I setup my software for it?

Paid Parental Leave Scheme

Paid Parental Leave Scheme – What is it? How do I setup my software for it

The new Paid Parental Leave scheme became compulsory on 1 July 2011 – it is an offer from the government whereby up to 18 weeks paid parental leave is offered to eligible working parents of children born or adopted on or after 1 January 2011. The government makes a payment to the employer to then pass on to the employee. This post explains generally what is involved to setup and record Paid Parental payments within your software. For full details go to our software website What is the current rate of Parental Leave? The rate is paid at the National minimum wage. For more information go to Paid Parental on page Useful Business Links. How to do it:

  1. Create an account to track parental leave – We need to create a Liability account to track your Parental Leave. Depending on your Parental Leave reporting obligations, you may want to create an Expense account to track this leave instead of a Liability account. Speak to your accountant or the ATO for the appropriate solution based on your circumstances.
  2. Create a new Wages category
  3. Exempt Paid Parental Leave from calculating superannuation
  4. Exempt Paid Parental Leave from accruing entitlements – depending on the way the employee is set up
    1. Hourly employees – the entitlement will not accrue as there are no hours to calculate the percentage. This seems contradictory, but normally hourly employees will accrue leave as a percentage of hours worked. While they are on Paid Parental Leave, they are being paid via a Salary Wage category, rather than an Hourly Wage category. Therefore having no hours on the paycheque means that no leave will accrue.
    2. Salary Employees – need to have the Entitlement(s) deselected in their card. This is because generally these employees will be set to accrue a flat amount of hours per Pay Period/Month/Year, and unless the entitlement is deselected in their card, the entitlement will continue accruing throughout the period of their Paid Parental Leave.
    3. Note: When the employee finishes the Paid Parental Leave you will need to select these entitlements again so that the leave entitlements will accrue.
    4. What do we do when my employee is taking Paid Parental Leave? In MYOB you go to the standard pay and zero all the salary or hourly $ amounts, and against the Paid Parental Leave category, enter the amount that is to be paid.
    5. We are now ready to process Paid Parental Leave payments for your employees. When you have finished paying the Paid Parental Leave payments, you can use the Reset to Original Amounts button on the Payroll Details tab of the employees card (as shown above) to restore the values back to the standard hours.
      1. Receiving the payment from the government. When the employer receives Parental Leave payment from the government, this needs to be recorded as a Receive Money transaction into the Liability account created.
      2. Note – Paid Parental Leave and Payment Summaries – If you include the Paid Parental Leave amount in the Gross Wages on your Payment Summary, you will need to account for this if you attempt to reconcile the total from the Payment Summaries with the Total in your Wages & Salaries expense account. The Paid Parental Leave amount is not shown as an expense, and therefore it is expected that the Payment Summary Total will be higher than the total of the Wages & Salaries expense account. For more information on Payment Summaries, see the MYOB support note Preparing and printing Payment Summaries.
      3. Removing Paid Parental Leave When an employee returns to work after parental leave, their card needs to be updated so the Paid Parental Leave payment will be removed from the employee’s standard pay, and their normal Base Salary will be reinstated.