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

 

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

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

Another thing to consider that bears on your cash flow is a small increase in super. Remember to increase the super calculation to 9.25% in your software from 1 July 2013. Super is an employer expense, tax deductable against assessable business income, and is due on wages over $450 per month. Super is increasing 0.25-0.5 each year until it reaches 12% from 1 July 2019 onwards.

From the ATO website

What you need to do:

  • Update your payroll and accounting systems to apply the appropriate increase to the super guarantee rate;
  • From 1 July 2013, increase the rate you use to work out the super guarantee payments you make for your employees from 9% to 9.25%;
  • Continue to increase the rate you use to work out the super guarantee payments you make for your employees each year until 1 July 2019;
  • If you have 19 or fewer employees, consider using the Small Business Superannuation Clearing House (see Data and e-commerce standard) to help you meet your super guarantee obligations.

To work out how much super you need to pay for each employee, use the superannuation guarantee contributions calculator.

For more information on your super guarantee obligations, refer to Employers superannuation – home.

To set this in your software, open the Superannuation Payroll Category and change the super % to 9.25%.

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

0407 361 596 Aust

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MYOB / Quickbooks – Payroll End of Year Tasks to Complete

MYOB / Quickbooks – Payroll End of Year Tasks to Complete

Payroll End of Year Tasks to Complete

As the tax year closes, there are several steps that will ensure smooth and hassle-free wind up of payroll without mistakes! The processes are the same in any software – but good records and reconciling the payroll reports to what your actual accounts say is crucial – it is never good practice to assume!

The simple Payroll Year-End steps are –

Completing the following tasks will ensure this process is successful:

  1. Process the last pays for the year;
  2. Print the key payroll reports – many cannot be generated once you roll-over a year (eg MYOB) such as super;
  3. Reconcile PAYG (Pay As You Go) Tax – the balance in the PAYG account at 30 June should be the amount still not paid/reported – eg month of June or April-June – depending on whether you report monthly or quarterly;
  4. Reconcile Super the same way – the amount in the account at 30 June depends on monthly or quarterly reporting/payments;
  5. Identify workers under labour hire arrangements;
  6. Print Payment Summaries;
  7. Back up the company file;
  8. Close the payroll year;
  9. Load new payroll tax tables;

MYOB – have a great detail on the steps HERE.

Important Notes – some important parts of the steps include comparing the reports from Employee Activity with the Employee Register – why? Because they draw their data from 2 different sources – Activity is the ACTUAL pay slips, Register is the amounts in payroll history that are updated on the employee card – both should match. The Register is important also because it is the data used to compile the Payment Summary – so ensure they are right!

Reckon/Quickbooks – their payroll year-end is HERE for 2011 onwards, or HERE for 2007/8 (click the 7th topic – End of Year Process of Payment Summary, Magnetic Media form and EMPDUPE file creation.)

Important Notes – Where an employee has salary sacrificed their full salary over the year, modify a pay and add one cent PAYG Tax to force the employee to appear on the Payment Summary List and have a payment summary issued. There are notes further answering “what if an employees is not in the list?”

Both software – create the EMPDUPE file – it saves so much time! Save it in a new folder in your documents “Company YE13”, copy the EMPDUPE file to a CD, then download the following form (or obtain from the software in) at: http://www.ato.gov.au/content/downloads/MEI30459PSARMagMediaV8.pdf, complete it and copy it for your records, write “mailed xx/xx/xx” on it), mail the CD and form together – (address is on the form!).

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

And also get Free “Avoid these GST mistakes” – there’s 18 that the Tax Office see regularly – get them right!

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Business Tax Tips – Business Monitor Research Shows How To Boost Revenue By Working With Your Accountant

Business Tax Tips – Business Monitor Research Shows How To Boost Revenue By Working With Your Accountant

Business Tax Tips – Business Monitor Research Shows How To Boost Revenue By Working With Your Accountant

Rose Powell reports in SMEs can make better use of their accountant to boost their bottom line “For the third of business owners who worked with an accountant as an advisor, one in five (21%) saw a rise in their revenue over the last year.” Rose also wrote“Small business operators who used their accountant as a business advisor last year were 31% more likely to see an earning uplift, according to new research from the 2013 MYOB Business Monitor.”

The vast majority of the 1005 business owners surveyed, 89% used an accountant last year.

Only 32% of owners reported having an advisory or consultative relationship with their accountant, compared with the 57% whose relationships were for compliance only, such as tax return completion or GST reporting. Just 11% did not have an accountant…. Adam Ferguson, general manager of the accountants division at MYOB, told StartupSmart that using an accountant as an advisor was especially valuable for start-up companies.

“The start-up phase of a business is very different to when it’s up and running. In that phase, your accountant can help with things like creating a business plan, applying for business loans, building out your business case,” says Ferguson.

For start-ups who are already in operational phase, the increasing use of cloud accounting systems enables accountants to provide feedback and ask the right questions about compliance and cash flow.

Ferguson says cloud accounting means compliance is no longer a year-end process, and increasingly a monthly one. This makes them well placed to advise on cashflow questions.

“An accountant can play a key role in helping a start-up, reporting on cash flow on a more regular basis, and understanding the dynamics that drive cashflow,” says Ferguson.

The report found companies that worked with an accountant as an advisor were less concerned about attracting and retaining customers, and were more likely to increase their overall investment in their business strategies.

“Once you’ve got your cash flow healthy, it becomes a question of how to use that and where to invest that to grow my business,” says Ferguson.

Over half, 53%, said they found their accountant advisor provided useful advice on how best to manage the money that flows through their businesses.

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

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Quickbooks – Invoice Multiple Clients with the Same Invoice/Item/Service

Quickbooks – Invoice Multiple clients with the same invoice/item/service

Quickbooks – Invoice Multiple clients with the same invoice/item/service

Batch invoicing is a function that allows us to create one invoice and send it to multiple customers, even personalized for each of them.

But note: When you use the batch invoice feature, multiple price levels are not possible nor can you operate in multiple currencies. Neither can you check a customer’s credit limit at the time (so check before).

Go to the Customers menu and select Create Batch Invoices, on the left side of the window that opens

You have two options for selecting invoice recipients –

  1. Manually by highlighting them in the list and clicking Add
  2. Or create a billing group. To do this, click the drop-down arrow below Billing Group and select <Add New>. The Group Name window opens. Enter a name and click Save.

If you have a custom field set up in customer records that indicates whether or not each customer is a “XXX”, then in the Look for field below Search, type “Yes”, as that’s what appears in the record of every member customer. Then click the drop-down arrow next to All Fields and select Custom fields. Click the Search button, and QuickBooks will display your group names below. Click Select All and then Add, and your customer list will move over into the right pane, under Customers In This Group. Click Save Group.

Whether you selected a group of customers or created a billing group, click Next. In the window that opens, enter a line item, click Next to see a complete list of your customers and their charges. Then click Create Invoices. The Batch Invoice Summary window tells you how many will be printed and emailed, and how many are unmarked (for later delivery).

Next, when you click the Print or Email button, the Select Forms To Send window opens. Scroll down if you have to, find the names of your group. Make sure there’s a check mark in front of only those customers, click Edit Email, changing your message if necessary. Click OK, and then send or print.

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

And also get Free “Avoid these GST mistakes” – there’s 18 that the Tax Office see regularly – get them right!

Wondering which software to get? Click on the “Get FREE Download” button above for your FREE report!


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MYOB – New 2013/2014 Compliance (Payroll) Update and Software Changes

 

MYOB – New 2013/2014 Compliance (Payroll) Update and Software Changes

MYOB – New 2013/2014 Compliance (Payroll) Update and Software Changes

The new 2013 compliance update – is coming soon in late June 2013!

For AccountRight and AccountEdge the 2013 compliance update will be available for download in late June 2013. They will include all the ATO changes required to be compliant for the 2013/2014 financial and payroll year. When it is available, the MYOB site and support note will be updated with instructions on how to get it.

While waiting for the update you can also check out Getting the compliance update for some things we can do to prepare for EOFY. Another good link is the End of Year Support Home Page with many resources to help us at this busy time of year.

Note: The best way to keep your software up to date is with a MYOB Cover or AccountRight Live subscription, but contact us for bonuses and special offers not available elsewhere.

Other Notes from MYOB:

  • The compliance update must be installed on all computers which access your company file.
  • For more information about the PAYG Tax Tables in your software, see this support note.

AccountRight Plus users please note:

There will be two compliance updates available: One for AccountRight Plus v19, and the other for AccountRight Plus 2011 and later. Why two? Even though many have already upgraded to the new AccountRight, MYOB wants to make sure those of who haven’t upgraded can move across at their own pace, without the added pressure of June 30.

Also note, if you’re still using AccountRight Plus v19, it is recommended to stay there until after the busy end of financial year period. And when you do decide the time is right, there are a range of support channels to assist you with the change, so head to support note Installing and upgrading to the new AccountRight.

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

And also get Free “Avoid these GST mistakes” – there’s 18 that the Tax Office see regularly – get them right!


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Business Finance 101 – What is the Difference between Liability and Debt?

 

What is the Difference between Liability and Debt?

What is the Difference between Liability and Debt?

Many times, people use liability and debt when they mean the same thing. As an example in the debt-to-equity ratio, debt means the total amount of liabilities. In this case, debt includes short-term such as overdrafts and credit cards and long-term loans and bonds payable and normally also includes accrued wages and utilities, income taxes due and other liabilities. In other words, sometimes debt is means all obligations… all amounts owed… all liabilities.
However, other times, the word debt is used more narrowly to mean only the formal, written financing contracts such as short-term loans payable, long-term loans payable and bonds payable, example – hire-purchase, equipment finance, etc.
As always, keep in mind to know WHAT is being used – be clear and have it defined!

Need help? Not sure? Call for FREE 30min advice / strategy session today!
And also get FREE “Avoid these GST mistakes” – there’s 18 that the Tax Office see regularly – get them right!
Wondering which software to get? Click on the “Get FREE Download” button above for your FREE Report!