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Bookkeeping – End of Financial year final pay falls in new financial year

Bookkeeping – End of Financial year final pay falls in new financial year

Bookkeeping – End of Financial year final pay falls in new financial year

Client questionJust a quick question. 

We have an employee being paid fortnightly.

Next payment to be made 07/07/2017.  This includes the week 26/6 to 30/6/2017. Does any of this have to be put through in EOFY for 2016/2017?  Or will it be first payment for New year on new tax table?

Solution Payroll is taken as  a cash payment in the accounts – ie WHEN it is paid.

Regardless of what period it covers – it is WHEN it is paid.

So not included in previous tax year.

You can finish your payroll YE17 year, prepare the Payment Summaries – check you include in Gross Payments, any NEW payroll types/categories if you created any during the year.

Then roll forward to new payroll year, and you can process the 7/7/17 payroll that covers end of June days and some of July days.

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


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MYOB / Quickbooks – Tax Tables for 2017 – 2018?

MYOB / Quickbooks – Tax Tables for 2017 - 2018?

MYOB / Quickbooks – Tax Tables for 2017 – 2018?

 

The new tax tables for 2017-2018, have been released. The new tax tables include the removal of the temporary budget repair levy, the increase in Medicare levy low-income threshold, as well as the annual indexation of HELP/SSL/TSL and SFSS.
So employees earning between $394 and $520 per week will be affected, all employees with student loans, as well as those on higher incomes.

tax rates 2016-2017

Last tax year, 16-17 they mainly changed in the level $37,001 – $$87,000 (was up to $80,000) range. The past tax year levels are –

 

tax rates 2016-2017

Does your MYOB software have out of date tax tables, or you know you need them by experience every year. (To find what you have, click Set Up then General Payroll Information. In about the middle is the table date at the start of that tax year it applies to).

Tax tables become out of date nearly each year as tax rates and/or Medicare and HECS thresholds can be changed by the Tax Office (ATO). MYOB only supply new tax tables via full software annual subscription. You can no-longer buy the  latest tax tables separately as many years ago. Users must upgrade to a new version or take out Cover under their support program to receive the latest tables or ‘pay2myob.bin’ file for earlier versions (MYOB) to keep payroll compliant. (If you want assistance to upgrade to the latest MYOB call Paul – 0407 361 596 or email us – info@accountkeepingplus.com.au).

The special MYOB tax file (eg ‘pay2myob.bin’) has been specially formatted so that it disallows any manual edit. Additionally, each version is formatted specially, so you can’t use a tax file formatted for MYOB Version 19 with say Version 16. For the Mac version (AccountEdge®) the tax table file is called “MYOB Tax Tables” or in v9 to 9.6 has a “.tax” extension. Everything else though is the same and all the comments here apply equally to the Mac version.

Note third-party tax tables cannot be used in MYOB 2011 onwards – you MUST have subscription or upgrade. Contact us to discuss your needs, or assistance with upgrades and get our extra BONUSES no obligation. 0407 361 596.

There is a Solution up to MYOB v19.13 and Account Edge 15.5 Third party updated tax tables available for $80 provide a substitute, have been tested by ourselves and work with many prior versions. They are for those who want to continue to use their current versions of MYOB® without the need to upgrade. Note that there is nothing in your license agreement that prevents you using 3rd party tax tables.

Installation is simple. The tables are supplied with easy to follow video and instructions and instantly downloaded after secure credit card  payment in most instances, or will be emailed to you. You also receive a PDF copy of the applicable Aust Tax Office Weekly Tax Table for you to check the accuracy of the calculations. After-sales email support is available for any installation or setup issues you may encounter. If you would like Account Keeping Plus to install for you, we can do by remote desktop – Teamviewer (free software). For $50+GST. Call or email for instructions.

Note NO changes are made to the software. The only changes made are to the tax rates in your company data file that the software calls upon to calculate PAYG Withholding in a pay, when processing payroll. The changes made are not permanent and can be reversed by reloading the tax tables from your current tax table file, simply moving a file in the software folder

These third-party tables are available, which Account Keeping Plus have tested in the software and tested against the ATO tables and work perfectly for us and our clients. To get more details and purchase for your MYOB – click the grey box to the right – “Tax Tables” or CLICK HERE

ATO Tax Tables – PDF’s

For the latest tax tables to download the PDF and keep a copy, or use the Tax Withheld Calculator online all from here.

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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Reckon/Quickbooks – Year End Business Tax Planning – Support to prepare the books/accounts well!

Reckon/Quickbooks – Year End Business Tax Planning – Support to prepare the books/accounts well!

Reckon/Quickbooks – Year End Business Tax Planning – Support to prepare the books/accounts well!

There are plenty of resources to assist you in preparing better books for your accountant, but more importantly for you to have an accurate set of books to UNDERSTAND and gain INSIGHT to MANAGE your business BETTER! Your books and accounts are a treasure-trove of information that tell you about the health of your business and what areas you can work on to improve your business financial results!

Here is End of Financial Year (EOFY) in a simple A B C D!

A.    Time to plan for a good finish for EOFY and here are 14 tips to get started and prepare for 30 June.

B.     Reckon EOFY Guide for small businessdownload the free guide.

C.     A great tool is this calendar where you can select the date to see key compliance tasks and actions that need to be taken (by rival MYOB but a GREAT tool!) – click this image – 

https://www.myob.com/au/small-business/end-of-financial-year

D. Reckon have some other great tips from their blog

1) 2017 is an even bigger year for small business

Based on a recent study by the Council of Small Business Organisations of Australia, small businesses provide half of Australia’s private sector jobs. Australia’s new budget became official on May 9 of this year. It exemplifies Australia’s commitment to supporting small business’ efforts and your contributions to Australia’s economy and its workforce. It aims to decrease small business’ tax burdens and reduce ‘red tape’ complexities. It includes, among other things, a trial run of simplified business activity statements.

It also simplifies the process of reporting GST information. Small businesses will no longer have to report separately on export sales, GST-free sales, capital purchases and non-capital purchases.

In the interest of making Australian businesses able to compete more internationally, the government is also working on a 10-year plan to reduce all corporate businesses taxes to 25%. Australia is also investing lots of dollars into improving its infrastructure, increasing the skills of Australia’s workforce and making utilities more affordable. This, too, should benefit all Australians.

2) What constitutes a small business?

The biggest change in this year’s budget is in the small business turnover threshold limit. Where it used to be $2 million,  it is now $10 million. Many more businesses will be able to access small business concessions this year, including the lower business tax rate of 27.5%. This tax discount will also apply to “sole traders, partnerships and other unincorporated businesses with an annual turnover of less than $5 million.”

Other benefits to qualified businesses include credits and subsidies for government trained interns as well as the hiring of job-ready seekers and those with barriers to employment.

Note: capital gains tax concessions are still limited to a $2 million turnover and unincorporated small business tax discounts are limited to a $5 million turnover. The unincorporated small business tax discount is also being increased to 8 per cent, up to $1,000. Businesses must qualify by meeting turnover and CGT concession eligibility tests.

Also note: in an effort to prevent businesses from diverting income to make the $2 million turnover mark, the law specifies that turnover “needs to be calculated from the ‘aggregated’ amounts . . . of every ‘connected’ or ‘affiliated’ business.”

3) Other tax-time-bewares

As always, be organised, be diligent, be thorough, be legal – and be on time. Keep records of everything (the legal requirement is 5 years); don’t throw out business related receipts and do periodically update expense and account records. A compliant accounting and tax software program is highly recommended for use at tax time and throughout the year. Consider linking your business accounts to your accounting software.

Be sure to include all income (even personal, such as rent collected on personal property investments). Don’t try to claim expenses that aren’t business related – if they’re partially for business, make sure they’re properly pro-rated. For those in the courier and cleaning industries (and others who do cash business) – in the interest of a level competitive playing field and other goals listed above, cash records will be thoroughly vetted.

Be aware of regulations related to personal loans from your business. Read up on Division 7a if you have, or plan to, engage your business in a personal loan.

4) Deductions can be fun . . . as long as they’re legal

Here are a few, among many others. Use your trusted tax software to guide you: operating supplies and expenses, home office supplies and expenses, bad debts (must be written off by June 30), business travel (including non-commuting auto expenses), advertising and sponsorships (time to support your favourite local little league team), charitable contributions, pre-paid expenses (such as insurance premiums, rents and professional subscriptions), super contributions and fringe benefits, bonuses (must be reported to employees in writing by June 30), depreciable assets, equipment and office maintenance, business related education and training, union dues, freighting services, websites & domains, uniforms & protective gear. Ping Pong tables, Xboxes, pedicures and art work– yes, if they qualify.

How’s that sandwich going? Ready for pizza yet? Also tax deductible.

5) A few other really important things to know . . .

  • . . . about SUPERSTREAM: It is the law. Super contributions must be paid electronically and in a single, standardized format “so it can be transmitted consistently across the super system  – between employers, funds, service providers and the ATO. It’s linked to the payment by a unique payment reference number.” Super concessional contribution caps for employees under age 49 have increased from $25,000 to $30,000.
  • . . . about PAYG REPORTING: STP is still optional, but recommended, for small businesses.
  • . . . about FOREIGN WORKERS: Australia’s temporary work visas will herewith be limited to those who fulfill critical skills  shortages. Employers will have to pay a levy that will be earmarked into its new Australian skills development fund, in the interest of training Australians in areas of needed skills.
  • . . . about STOCKS: Stocks can now be valued at year-end cost, market selling value, replacement or obsolete stock value.

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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MYOB – Year End Business Tax Planning – Support to prepare the books/accounts well! MYOB Account Right

Support to prepare the books/accounts well! MYOB Account Right

Support to prepare the books/accounts well! MYOB Account Right

MYOB have a huge amount of resources to assist you in better books for your accountant, but more importantly for you to have an accurate set of books to UNDERSTAND and gain INSIGHT to MANAGE your business BETTER! Your books and accounts are a treasure-trove of information that tell you about the health of your business and what areas you can work on to improve your business financial results!

EOFY – End of Financial Year key dates

A great tool is this calendar where you can select the date to see key compliance tasks and actions that need to be taken – click this image – 

MYOB Key dates 2017

MYOB Account Right

There are End-of-year procedures that need to be carried out to prepare your company file for the coming year. By reconciling and completing the year in your company file, you are effectively bringing the company file up to date.

These include any adjustments you need to make to your company file so that it agrees with your accountant’s final records before you start a new year.

Your payroll, invoices, purchases statement reconciliations as well as finally your inventory should be counted, valued and, where necessary, adjusted in your company file.

The MYOB End of Period page is where you begin. The resources include end of Month, Financial and Payroll Year things that you should do. Overall it’s about checking the accounting records to ensure they are complete, accurate and reconciled to key support documents such as bank and credit card statements.

Other helpful Links

MYOB Essentials

For users of MYOB Essentials, see the end of year video on what to do. You can also find  FAQs and The Help Centre there.

http://help.myob.com.au/teachme/webcasts/essentials/index2.htm

Software Upgrades

You will be able to download the current update directly from Updates within the MYOB Account Right software in many versions, or from this page.

Want help with upgrading? – do you need to talk about what is available without obligation or any pressure? Then call Paul! 0407 361 596

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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Bookkeeping – 7 tips for business health by keeping healthy books/accounts!

Bookkeeping – 7 tips for business health by keeping healthy books/accounts!

Bookkeeping – 7 tips for business health by keeping healthy books/accounts!

Here are some timely reminders from J T Ripton at smallbizdaily.com

Accounting is often one of the toughest jobs for small business owners, especially those who don’t have a lot of experience or a strong background in bookkeeping. Following a few simple tips throughout the year can make it much easier to track expenses and file taxes when the time comes.

1. Plan Ahead

The first step is to look ahead at the potential needs for your company and plan for these expenses. For example, if you know that you will need to replace expensive equipment in the near future, make sure to set aside funds every month to cover the costs. Other major expenses that may arise include office supplies, inventory, maintenance, and repairs. You can also set aside money each month to cover the annual taxes, so you won’t stress about the amount you need to pay when April 15 arrives.

2. Use Reliable Software

Business bookkeeping software has come a long way over the past decade, and some programs make it much simpler to input expenses and cash flow. MYOB, Reckon and Xero allow you to keep everything you need in one place for easy recovery as needed. From tracking the status of unpaid invoices, to creating customized invoices, to tracking billable hours and budget spent, online accounting software is a great way to save time and money. Some programs like Dropbox and  Google Drive also offer cloud access to your files, which means that you can pull up information from anywhere instead of having to go to the office to find a document or receipt.

3. Separate Business and Personal

If you use your business credit card to pay for a personal expense, make sure to track that and separate it as soon as possible. It is much easier to separate expenses if you use separate accounts to pay for them, but you may accidentally use your business card for a non-company purchase. Business costs are tax deductible, so make it easier on yourself by separating them every time you make a purchase.

4. Schedule Yourself

When it comes to bookkeeping, it might seem easier to just put it off until the end of the year. However, this is going to result in a big headache when you are trying to track down receipts and invoices that may be months old. Schedule time each week or each month to work on your books and stay as current as possible. It may be tempting to skip this every so often, but when you can stick to the schedule, it will be much easier to stay on top of the finances without feeling so stressed.

5. Review Invoices

Be sure to keep close track of your invoices, since some (clients) are notorious for paying bills late. You can probably use your accounting software to run a monthly report and determine what invoices are still outstanding. This gives you the flexibility to send reminders and follow up on outstanding bills before too much time passes. It is also smart to keep a close eye on your cash flow statement, so you can avoid the dreaded insufficient funds message on a payment.

6. Call in a Pro

For some things, it is definitely worth the investment to bring in an expert. You may rely on a financial advisor who specializes in your industry, or you might just need an accountant who can pay your taxes and payroll. You can even use a student intern who is working on an accounting degree if the budget is tight.

7. Track Expenses

Most experts discourage business owners from using cash to pay for any business expense, since it can be very difficult to track. When you use a credit card or debit card, you can view the transactions right away and make sure that all items are true business expenses to avoid issues with write-offs and taxes.

Accurate bookkeeping is an important part of business ownership, so it is crucial to stay on top of the expenses and invoices to prevent problems. If you have questions about bookkeeping, you can always rely on an expert, but once you have your system down, it should be much easier to keep track of the money coming in and out of your company each day.

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


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Cashflow Tips – How to Improve Cashflow in 30 days!

Cashflow Tips – Claiming Business expenses – Consider what you want to achieve

Cashflow Tips – How to Improve Cashflow in 30 days!

One of the services we help our clients with is teaching how to improve cashflow – and our aim is 30 days! – mainly how to get paid sooner is the top issue they face! A simple method we found is simply send statements EVERY FORTNIGHT – the majority of busy business owners and accounts people forget – you are not their priority.

Results we achieve –

  • Frequent reminders has cut accounts payable / debtors from 60-90 days to majority 30 days and fewer in 60 days! – nearly halved the average payment time in many cases!
  • Calls have been more than halved!
  • Regular email saves time, stress and cost! – The squeaky wheel gets attention!

But there are always the stragglers or those in financial stress that may not be their fault, and often they are a bit embarrassed to call to explain – so sometimes a follow-up call is needed.
And then there are the down-right determined to string you out (the old-fashioned attitude to lean on creditors (YOU)), or financially tight businesses that are only in to win themselves – sometimes they may become a loss.

Here are 5 other tips from Elan Pamensky at Dynamic Business

Cashflow is the lifeblood of any business and more SMBs have been destroyed through cashflow issues than from any other cause. The last thing you need is to be stressing about whether you have enough cash to pay your own suppliers when you should be running your business

1. Compare Your Budgeted and Actual Cashflow

When you made your realistic budget for this financial year, you predicted  your income and expenses so that you could use those figures in your planning. The purpose of this budget was to check whether your cashflow was on target and take action if it is not.

If you are having cashflow issues, you need to determine what is at the root of the problem – lack of income, out-of-control expenses, or late payment of accounts by customers are the most common causes. Once you identify the cause, you can do something about it, but it all starts with awareness.

2. Be Clear About Your Payment Terms and Follow Up

You’d be surprised how many businesses forget this step, and it’s one of the easiest ways to improve your cashflow. Clearly defining your payment terms at the start of your relationship can transform the speed at which you are paid, and it also gives you a chance to negotiate.

If you are asking for 7 or 14 days payment and your prospect wants 30, 60, or 90 days you have the opportunity to negotiate a higher fee in return for your concession on terms, and you have the opportunity to ask yourself whether this client is going to be worth working for at all. This also puts you in a much stronger position if they are late paying your invoices because you have already had a discussion about the terms.

Once you have established the terms of payment make sure you follow your clients up quickly and professionally when they are overdue. This increases your client’s respect for the value you deliver, and helps you get paid sooner

3. Invoice Immediately

Businesses that invoice weekly or monthly are more likely to have cashflow problems. If you invoice as soon as you complete a job the chances are you will get paid immediately … or at least on time because a client who has just signed off on a job is probably happy to pay (or at least schedule payment) immediately rather than having it hanging over their head as something to do.

Tradies are particularly guilty of waiting days or weeks to invoice, and often only invoice when they have a cashflow crisis, so using an app, or developing a system that allows you to invoice immediately is an excellent way to improve your cashflow.

4. Plan Ahead for Compulsory Payments

Set aside money as it comes into your account to pay your taxes, GST   and superannuation obligations. It’s best to put this into a separate bank account so you are not tempted to think of it as ‘available cash’ because it really isn’t available at all.

I’ve lost count of the number of business owners who thought they were having an incredibly profitable year, but who discovered that they had forgotten to set aside enough cash to pay their legal obligations and were suddenly plunged into a cashflow crisis in June or December.

5. Consider Ways to Reduce your Stock Without Affecting Delivery

While many businesses need to have a certain amount of capital tied up in stock so that they can provide efficient and timely service, it’s always worth revisiting your stock levels. From stationery and office supplies to spare parts and widgets your goal should be to have enough to operate your business without interruption, but not too much.

Holding excess stock has an effect on your cashflow as well as on your expenses (warehouse and office space) so it’s important to determine the right levels for your business, and to control it carefully. Lower stock levels also make stocktake easier to manage.

In summary, if you implement one or more of these cashflow improvement methods you will find that the additional cash you have available at any time will increase, and you will also be able to look ahead and see when cashflow problems are likely to occur so that you can work around them.

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


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Bookkeeping – Quick tip – Don’t use “Miscellaneous” or “Sundry” all the time for Miscellaneous expense in the accounts

Bookkeeping – Quick tip – Don’t use “Miscellaneous” or “Sundry” all the time for Miscellaneous expense in the accounts

Bookkeeping – Quick tip – Don’t use “Miscellaneous” or “Sundry” all the time for Miscellaneous expense in the accounts

If you use a “Miscellaneous Expense” or “Sundry” account, it can indicate lazy bookkeeping. It is also no help when you or the bank reads your Profit & Loss! What is in that account will be the question!

It is better to use the closest correct expense account or to add a new account to better capture the expense type. Also use the memo in the transaction, to fully describe the expense, and invoice number if not using purchases. The more detail you put in now, then you won’t have to sift through your papers later to find out what the expense was, or dig out a copy for your accountant (or the taxman)!

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