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Reckon/Quickbooks – Changing the Email Format when Sending Invoices

 

Reckon/Quickbooks – Changing the email format when sending invoices

Reckon/Quickbooks – Changing the email format when sending invoices

Client called How can I change the default look and words of the email text?

Answer – Go to > Edit > Preferences > Send Forms

Select the Company Preferences tab and change the settings available there.
Also consider BCC to yourself so you can see and have a copy and it makes it easier to re-send when the client says they “can’t find” or they have “lost the invoice”!

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – no-one offers as much! Call and you also get FREE “Avoid these GST mistakes” – there’s 18 that the Tax Office see regularly – get them right!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia

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Business Tax Tips – Correcting GST Mistakes in Current BAS Instead of Amending Past BAS

 

Business Tax Tips – Correcting GST Mistakes in Current BAS Instead of Amending Past BAS

Correcting GST Mistakes in Current BAS Instead of Amending Past BAS

There are new more generous conditions that allow businesses to correct GST errors in the current BAS, instead of having to amend the past BAS which included the error. The conditions involve the type of mistakes that qualify (under or over-estimation) and the age and $ amount involved.

Common mistakes the ATO sees include:

  • Incorrect application if the margin scheme rules for sale of land;
  • Incorrect application of the going-concern rules on sale of a business;
  • Claiming GST credits when supplier not registered;
  • Claiming GST credits on Stamp Duty;
  • Accounting for GST on cash basis when not eligible (turnover less than $2 mill).

We have written about other common GST mistakes – see our articles.

Avoid These 6 GST Mistakes Part 1

Avoid These GST Mistakes Part 2 – 6 more

Usually when an error is discovered on a past BAS that has been lodged, you need to request and lodge a revised BAS form or electronic lodgement amendment. In some circumstances, you can avoid the hassle and time by allow for the correction in a current BAS.

Qualifying “Mistakes”

There are 2 categories – debit mistakes and credit mistakes

  1. Debit Mistakes – understating liability – clerical errors (eg double counting) or not including sales with GST, recording taxable  sales as GST-Free
  2. Credit Mistakes – overstating liability – clerical errors or recording taxable acquisitions as GST-Free

New Time and Amount limits

  1. Debit mistakes – must not be reckless or intentional, and with turnover less than $20 mill, correct within 18 months of due date of the BAS for the tax period in which the error was made, and the overclaim is less than $10,000 (was $5,000)
  2. Credit mistakes – can be corrected for BAS due less than 4 years ago (previously 18 months) and there is NO $ limit.

For more details, see the ATO site and the lower part of the page Correcting GST mistakes

Refer to Correcting GST mistakes before 10 May 2013 to access the historical guidelines that you would have followed if you corrected an activity statement before 10 May 2013.

Refer to Appendix C in Correcting GST mistakes before 10 May 2013 for a summary of the key differences between the rules for correcting a GST error set out in this guide and the previous rules for correcting a mistake.

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

Call 0407 361 596 Aust and also get Free “Avoid these GST mistakes” – there’s 18 that the Tax Office see regularly – get them right! Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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MYOB – Factory Lease Security Deposit Tax Code and How to Record

 

Factory Lease Security Deposit Tax Code and How to Record

Factory Lease Security Deposit Tax Code and How to Record

Client emailed I have paid a security deposit for our warehouse lease. I have put the deposit to an asset account, is this correct and should I use CAP or GST, as GST was also included?

Answer The payment is recorded as an asset with a not reportable coding like N-T, to a Security Deposit asset account, often in the Fixed Asset section, as it will be longer than 12 months, correct.

Until the deposit is refunded, or used in payment toward your lease you can’t claim any GST back for it and the seller doesn’t send any GST off to the ATO. It is a good idea to make the account type for the Asset account “bank”. To read more about the tax treatment of Security Deposits 9as opposed to Part-Payments see the ATO site HERE.

At end of lease the money is returned to you, so you do a Receive Money using the business bank account at the top where is was received and allocate below to the Security Deposit asset account with GST.

If you default on your lease and the owner uses the security deposit in part or full payment of your outstanding liability to them, you would pay the bill from the Security Deposit account (which is why we said to make the account type bank, though this can also be changed before entering), with GST code.

Security Deposits are not classed as payment for supply, where-as Part-Payments are – from the ATO site

What is a security deposit?

For the purpose of the GST law, a security deposit is an assurance held as security for the performance of an obligation.

A security deposit must also:

Be forfeitable by the payer if the payer defaults on the agreement

–   Not be unreasonably large (usually no greater than 10% of the total purchase price), though each case must be Individually assessed, and

–   Not be treated as payment for a supply unless it is:

  • Forfeited because of a failure to perform an obligation, or
  • Applied as all or part of the payment for a supply.

What is a part-payment?

A part-payment is an amount that is paid to reduce the balance of the full amount due to be paid under a contract. However, it is not forfeited if the payer defaults on the contract.

As a part-payment is not a deposit held as security, the payment is treated as a payment for a supply when it is received. If the supply is taxable, you must report and pay the GST as outlined below.

You do not pay GST on a security deposit unless the deposit is:

  • Forfeited, or
  • Applied as a payment for a supply.

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

Call 0407 361 596 Aust and also get Free “Avoid these GST mistakes” – there’s 18 that the Tax Office see regularly – get them right!