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Bookkeeping – Entering Annual Leave calculation that was missed

Bookkeeping – Entering Annual Leave calculation that was missed

Bookkeeping – Entering Annual Leave calculation that was missed

Client emailed Sorry to be a nuisance… this is so confusing and I am stuck.

Staff X took a week off from Monday 22nd February to Monday 29th Feb for his honeymoon and was back to work on Tuesday 1st March.

         Paid X 18/02/2016 covering period Mon 8th to Sun 14/2

         Paid X 3rd March covering period 22nd   Feb – 28th Feb

         Did not pay X on 25th Feb – covering period Mon 15th to Sun 21st

         Don’t know what I was thinking here….

How do I enter the correct information (45 hours annual leave) in MYOB?

Answer It is a matter of looking at what you HAVE DONE in MYOB, and working out what is missing –

Here is a summary of what I understand – see excel FREE download

You can alter amounts if you wish (NOT in blue boxes as they have formulas).

It just looks like do the NEXT pays to catch up Hol hours and make note in the memo of the payslip before recording.

Maybe need to redo an earlier pay – see notes in the excel.

If still not sure, we can discuss.

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!

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Business Finance 101 – What does it mean Profit is not Cash? Does that explain where is my profit when there is no money in the bank?

Business Finance 101 – What does it mean Profit is not Cash? Does that explain where is my profit when there is no money in the bank?

What does it mean Profit is not Cash? Does that explain where is my profit when there is no money in the bank?

Are you showing a profit in your business, but wonder where is your profit, when there is no money in the bank? And what does it mean when accountants say “Profit is not Cash?”

If you have cash sales, profit will usually correlate closely. But if you invoice clients for goods and services, the timing of when customers pay has an effect on the cash the business actually has. Not everyone pays on time, but if they did you would have regular cash flow, and only be delayed by the initial terms at the beginning eg 7 days, 30 days. Regular payments will mean regular flow of money to cover your expenses.

What if clients are late paying? Then the debtors on your balance sheet will grow (that is where the invoice “waits” for payment) until the client pays.

As an example, in our previous post explaining Profit and Loss, see HERE we gave an example of Profit and Loss resulting in $15,000 profit.

bus-profit-loss-diagram

But what if you were only paid half of the sales at the end of the period (which is more close to reality – eg most pay the next month or two…)

Sales (invoices)                                   $100,000

But only paid (actual cash)                $50,000

Which goes to bank (in assets)

Net Left                                                    $50,000

Which sits in debtors/receivables (in assets)

NotePROFIT would be same in accounting terms,

but CASH Profit would be -$35,000 (negative!)

That is, what this is – if you still had paid all your bills, you would still have to find $35,000 to pay them – see here

 Business Cash Profit

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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MYOB – Superstream in v19 (when not ready/need to go in the cloud) – using the Super Portal

https://www.youtube.com/watch?v=j_24ghpGxoY

MYOB – Superstream in v19 (when not ready/need to go in the cloud) – using the Super Portal

Get the most out of your subscription by using MYOB’s super portal to make contributions and easily meet your employee super obligations. Superstream in v19, uses the Super Portal.

It’s free with your MYOB product subscription, for AccountRight Classic (v19), AccountEdge and MYOB Essentials, Australia only.

A great video explaining SuperStream and how to be compliant in V19 – watch this HERE

Ready to go? Superstream in v19 – Here’s how it works:

1) Set up the super portal:

  1. Sign up to use MYOB’s super portal.
  2. Give your payroll officer or business advisor access to the super portal.

2)     Check your MYOB software setup: 

  1. Install a compatible version of your MYOB software.
  2. Review your company, employee and fund details.

3)         Process your payroll using your MYOB software and create a super contribution file.

4)         Process your super payments using the super portal:

  1. Upload the super contribution file to MYOB’s super portal.
  2. Review the contribution details, fix any issues that are found, and supply information that’s missing.
  3. Submit the contributions, and the amount will be deducted from your nominated bank account. 

Need help? Not sure? Call for FREE 30min advice / strategy session today! 0407 361 596 Aust

***BEFORE you BUY Ask us for a competitive software price BELOW retail – No obligation!

You also get FREE 30 min to assist in setting up your company in the software, 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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Cashflow Tips – Cash flow and Budget – what are they and how are they different?

Cashflow Tips – Cash flow and Budget – what are they and how are they different?

Cashflow Tips – Cash flow and Budget – what are they and how are they different?

They may sound boring or too hard or scary, but a cash flow forecast and a budget show similar information, so what are they and how are they different? There is a difference and each have different uses, but mainly they help the business owner in the financial management of the business or organisation.

Cash flow forecast  is an estimate of the amount of money (actual cash) you expect to flow in and out of your business and includes all your future income and expenses. A forecast usually covers the next 12 months, or it can also cover a short-term period such as a week or month.

  • It predicts when the actual income and expenditure occurs in the actual bank account(s).
  • Does not consider accruals and adjustments such as depreciation, only ACTUAL cash in and out
  • Large capital purchases such as assets (usually not recorded in a profit and loss and budget) are included in a cash flow forecast, as to HOW they will be paid – eg show loan money in and payments out –fully paid or the instalments on loans/finance
  • The full year cash flow forecast is usually shown on a month by month basis. But in it can be broken down into fortnightly or even weekly depending on the requirements
  • More info and a handy Free template – http://www.business.vic.gov.au/money-profit-and-accounting/getting-paid-on-time/cash-flow-statement-projection-with-template

Budget details overall what you plan to do with your finances based on expected sales and expected costs, and is similar to Profit and Loss (and a Balance Sheet). It is used to measure how you go against the budget – are you on track for what you want to achieve?

This is usually over 12 months, and focuses on profit. In addition:

  • Accruals and other non-cash adjustments such as depreciation are included
  • Large capital purchases will be included
  • A budget also provides a benchmark to then monitor performance – after each month accounts are finished we compare what actually occurred against what was budgeted or planned to occur.
  • Usually the full year budget is prepared in months like the Profit & Loss
  • A budget is NOT used to monitor the amount of cash in the bank accounts. That is where the cash flow forecast comes in.
  • Some further information is here http://www.infoentrepreneurs.org/en/guides/budgeting-and-business-planning/

Both Cash Flow and Budget detail the planned financial goals the organisation is trying to achieve and are linked to the strategic and business plans of the organisation. The main difference is based on:

1.     The type of the transaction and;

2.     The timing when receipts and payments will occur

As a simple example: a budget will record the income when you have sent out the invoice whereas your cash flow will record it when you actually receive the amount in your bank account. Always remember not to assume that debtors will pay the following month. Often it may be later which is why it is important to know your Average Debtor Days which may show that payment occurs typically 64 days after sending out the invoice. This would be reflected in the cash flow, but not the budget.

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

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