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


Leave a comment

RECKON / Quickbooks (former) – Leave amount incorrect on PAYSLIPS but correct in REPORTS and Employee record – for Desktop and previous Quickbooks Plus, Pro, Premier, Enterprise, Hosted 2014 onwards

Leave amount incorrect on PAYSLIPS but correct in REPORTS and Employee record – for Desktop and previous Quickbooks Plus, Pro, Premier, Enterprise, Hosted 2014 onwards

Leave amount incorrect on PAYSLIPS but correct in REPORTS and Employee record – for Desktop and previous Quickbooks Plus, Pro, Premier, Enterprise, Hosted 2014 onwards

Lady called – Why do our payslips from the latest version of Reckon Accounts show an incorrect amount of Accrued Leave, but the reports and Employee record show the correct amount?

SOLUTION – From the Reckon Support Notes (ID: 5623) –

This issue is effecting random Reckon/Quickbooks Accounts Business (Plus, Premier and Enterprise/Hosted) users using 2014 and later releases.

Analysis:

Reckon have identified the issue where the payslips of some employees do not display the correct accrued leave hours. This issue is totally random.

Reckon understand although the payslips do not show the correct hours, the leave liability report and the leave hours in employee actual record shows the correct hours.

Solution/workaround:

Please note: While we have known this KB to fix most of the issues we have tested, we cannot warrant that it will fix the issue in every case.

(The workaround to the issue is to reset the hours for leave for the employee and entering it manually after rebuilding the files 3 times.)

Please follow the below steps to fix the issue which is categorised into two parts:

Part 1: Preparations

  1. Backup the file. Make a fresh new backup of your Reckon file and keep it separate in a safe location so you can easily access it if required.
  2. Print the Current Leave liability report and ensure you know the current leave accruals for each employee prior to making any changes.

Part 2: Execution

  1. Go to the employee menu and select the employee which has an issue with leave.
  2. Edit the employee.
  3. Go to ‘Payroll & Compensation Info Tab
  4. Click on the Leave Details Tab
  5. Note down the existing Year Begins on “xxxxx”, Day “xx” and Begin accruing time on “xx/xx/xx” field for the employee – (or take a screen shot of the existing details. As you will need to enter them back once the fix is done.)Reckon Leave incorrect fix
  6. Do this for both Personal and Holiday
  7. Tick the ‘Reset hours each new year‘ option for the employee
  8. Enter the Year begins on, Day and Begin accruing time on field as a date after the last pay entered but prior to the next pay date (i.e. if the last pay was on 08/11 and the next pay is on 15/11 enter any date between 09/11 & 14/11 as the reset date)
  9. Do this for both Personal and Holiday
  10. Rebuild the data file 3 times (File > Utilities > Rebuild)
  11. Process the next pay (eg 15/11), the leave will reset
  12. Go into the Employee record and enter the correct Amount of Personal and Holiday Leave (and untick the Reset option)
  13. Enter the correct ‘Year begins on’, ‘Dayand Begin accruing on field as well as noted in step 5 above.
  14. Next week when you process the next pay (i.e. 22/11), the leave accruals will be correct in Payslip & Employee Record and the Transaction.

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – No-one offers as much!

Or ask a question – Email info@accountkeepingplus.com.au or call 0407 361 596 Australia

Advertisements


Leave a comment

Reckon ONE – How to set up and how to report Taxable Payments Annual Report (TPAR) – and when due?

Reckon ONE – How to set up and how to report Taxable Payments Annual Report (TPAR) – and when due?

Reckon ONE – How to set up and how to report Taxable Payments Annual Report (TPAR) – and when due?

Businesses in the building and construction industries need to know how to report Taxable Payments Annual Report (TPAR) – so how do we set up the Reckon ONE file, how do we generate the report and when is the due date to report?

Here we look at what the 1 Australian Tax Office (ATO) requires and how to 2 Steps to set up and generate a Taxable Payments Annual Report from Reckon ONE software.

1  ATO Requirements

You may need to lodge a Taxable payments annual report by 28 August each year if you are a:

  • Business in the building and construction industry;
  • Government entity;
  • May extend to Couriers and Cleaners.

The Taxable payments annual report reports to the ATO about payments you have made to contractors for providing services. Some government entities also need to report the grants they have paid and payments they make to certain other entities.

Contractors can include subcontractors, consultants and independent contractors.

They can be operating as sole traders (individuals), companies, partnerships or trusts.

See our post HERE, for more ATO detail.

2  Reckon ONE – The steps to set up and generate the report are – (a) Set the system, and then (b) Create the Report

(a)   Set up

  1. Click the “cog” icon at far top right of screen > Settings > Book Settings under General > Ensure all Business/Company info is completed – especially Company Name, ABN, Address, Contact, Phone > Save
  2. Back to Settings > under Tax Settings > General > Are you Registered for Tax? > Yes and fill in options below > Save
  3. Set up Suppliers > Contacts in Left side Menu > Suppliers. For each supplier subject to TPAR (contractors) click its name to open, and at top right, tick Subject to TPAR > Verify ABN left side is best. Save and Close. Repeat for all applicable suppliers.
  4. In transactions – you can tick in each transaction, if subject to TPAR also, and de-select individual transactions if not applicable when generating the TPAR report later.

(b)   Create TPAR Report

  1. Click Tax in Left side Menu > TPAR
  2. There are 3 tabs – All, Draft and Lodged
  3. To start, click Add at top right. Select reporting year required and say NO to Amendment (unless it is)
  4. This gives a list of your TPAR suppliers
  5. Click the arrow on the left of each supplier and you can see all the separate transactions. You can de-select any that don’t apply
  6. Generate File – click this at top right – this generates a TPAR.C01 to upload via the ATO Business Portal – it saves as a Download
  7. Print report form top right, as a record
  8. Email a PDF to the default email (as in your Settings, General, Email Settings)
  9. Once lodged, click LODGED and the TPAR becomes Read only.

For a quick video, go here –

Reckon One TPAR video shot

Need help? Not sure?

Call for FREE 30min advice / strategy session today! 0407 361 596 Aust– no obligation!

You also get FREE 30 min to assess the setup of your company in the software,

DOWNLOAD a FREEBookkeeping Quarter Checklist” to get organised! CLICK HERE

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


Leave a comment

Reckon/Quickbooks – How to set up and how to report Taxable Payments Annual Report (TPAR) – and when due?

Reckon/Quickbooks – How to set up and how to report Taxable Payments Annual Report (TPAR) – and when due?

Reckon/Quickbooks – How to set up and how to report Taxable Payments Annual Report (TPAR) – and when due?

Businesses in the building and construction industries need to know how to report Taxable Payments Annual Report (TPAR) – so how do we set up the Reckon/Quickbooks file, how do we generate the report and when is the due date to report?

Here we look at what the 1 Australian Tax Office (ATO) requires and how to 2 Steps to set up and generate a Taxable Payments Annual Report from RECKON software.

1 ATO Requirements

You may need to lodge a Taxable payments annual report by 28 August each year if you are a:

  • Business in the building and construction industry;
  • Government entity;
  • May extend to Couriers and Cleaners.

The Taxable payments annual report reports to the ATO about payments you have made to contractors for providing services. Some government entities also need to report the grants they have paid and payments they make to certain other entities.

Contractors can include subcontractors, consultants and independent contractors.

They can be operating as sole traders (individuals), companies, partnerships or trusts.

See our post HERE, for more ATO detail.

2 Reckon Accounts (and Hosted) – The steps to set up and generate the report are

1.  Enable the Taxable Payment Reporting option in the preference to be able to open the report.

  1. Go to the Edit menu, choose Preferences.
  2. Choose the Tax item and go to the Company Preferences tab.
  3. In the Taxable Payment Report section, click to select the Enable the Taxable Payment Reporting option.
  4. Click OK.

2.  Enable a supplier (sub-contractor) to become reportable on the Taxable Payment report

  1. Go to the Suppliers menu and choose Supplier Centre.
  2. On the Suppliers tab, double click the supplier’s name to open the supplier’s profile.
  3. Click to select the “Include in Taxable Payments electronic report” option.
  4. Click OK.

3.  How do I create this report to have what I need to upload or write on the ATO form?

  1. Go to the Suppliers menu, click Tax Activities, click Process Taxable Payments.
    The Process Taxable Payments annual report window opens.
  2. Click the Tax Year drop-down to select the tax year you are reporting on.
  3. If applicable, click the Withholding Liability Account drop-down to select the account you use to track withholding tax.
  4. Click the (tick) column to select the selected suppliers that you want to appear in the selected tax year’s report.
  5. Click the supplier to view the transactions for each supplier that are included in the report.
    The Supplier Taxable Payments Details – <supplier name> window opens.
  6.  You can review each transaction and click to deselect if you don’t want a transaction that doesn’t apply, included.
  7. Click OK.
  8. Click Save to save the changes (if you have made them) in the Process Taxable Payments annual report window.
  9. Click Export to save the report to your disk. The Select Location for Tax Payment Report File window opens. Enter a file name for the report, we recommend using the date in the file name.
    The default location for the file is \\ProgramData\Intuit\ReckonAccounts 2013\<level> 2013\<Company Name>\Export Files\Tax Payment Reports. For Reckon Accounts Hosted users, the default location is “Q:\ “
  10. Click Save. You will receive a message that the file has been successfully written. If you have electronic key, you can upload the file to your ATO portal.

Note: If you make any changes to the data whilst the Taxable Payments Annual Report Window is open, the report needs to be closed and reopened for it to refresh.

4.  How do you Amend the TPAR report if incorrect?

If you require to submit an amended report to the ATO, select the Generate Taxable Payments as ‘Amended’ option in the Process Taxable Payments annual report window.

Select the supplier that has been amended from the list and click Create Report.

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


2 Comments

Bookkeeping – Holiday/Annual Leave Payout deducts from the Accrual, but Holiday Cash Out doesn’t – Why? (Updated Article)

Bookkeeping – Holiday/annual leave payout deducts from the accrual, but holiday cash out doesn’t – Why?

Bookkeeping – Holiday/annual leave payout deducts from the accrual, but holiday cash out doesn’t – Why?

( 31 Aug 2017 – Information corrected, due to Sue’s advice in comments below – I learn new tricks every day, even when right before you !!! Thanks Sue!)

Client Skype’d Hi Paul, I’ve had a look and our special Pay Category, Holiday Cash Out doesn’t seem to be deducting from the balance of Holiday Leave Accrual. It’s not listed under entitlements under the Payroll Category List window.

Answer – Yes it is NOT linked to the accrual entitlement because it may only have one wage category (can be) linked (at a time to a) to the pay wage category – the Holiday/Annual Leave wage pay category that is regularly used, is linked to the Holiday Accrual and deducts from the accrual – if you go to Entitlements, and then open the Holiday Leave Accrual, you will see down at the bottom it says it is linked to Holiday Leave.

Your Holiday Cash Out is not an a usual entitlement (only with some awards) – it will be under the Wages Payroll Category to be used when paid :), but it has no effect on the accrual if not linked – until linked.

Client Skype’d – Thanks. So how do we reduce the accrued holiday leave by the hours that have been paid as a holiday cash out which is allowed in the award, up to 2 weeks per year? Can we put it as an entitlement that gets deducted or can we manually deduct from accrued holiday pay?

Answer – You tick it to link to the Holiday Leave Entitlement Accrual at the bottom for linked cateories! It needs be manually deducted – the more automatic way is to set up the Hol Cash Out as a separate entitlement, and choose to link it to the Holiday Cash Out wage category.

BUT – If the 2 weeks are optional and it is linked to the Accrual, it will adjust the hours WHEN Holiday is cashed out – automatically adjusted for you! it will be difficult to balance with the regular Holiday accrual if not taken every year – it becomes messy – if not used regularly but occasional years.

(with this correction of the info, past Cashed Out Holiday still needs to be adjusted to the Holiday Accrual as follows –

I would adjust the Accrual in this way – do a paycheque with ZERO hours, and in the lower lines at Holiday Accrual, adjust the holiday accrual with NEGATIVE the hours cashed out, and write a note in the memo for the reason and date the cash out occurred, there should be no super generated, ensure any other allowances etc are ALL ZERO also – then record, and this pay updates the accrual and there is a clear record with note and date for the reason for the adjustment.

Client Skype’dOK I will try that. There’s only a few done so far. So will need to do that for those ones. May make an adjustment today so these are all done now and up to date. Thanks.

Answer – Yes, do as a pay, then it updates and provides a note and proper record on the staff pays record.

Client Skype’d –  Thanks. Is the other option to use the “Unused Holiday Pay” for Cashed Out pay as well?

Answer – NO Unused is for a different reason – when they leave and still have Unused Leave owing due to them on leaving. The Unused Holiday can ALSO be linked to the Holiday Accrual will ALSO NOT decrease the Holiday Accrual, but it is used to be clear what the pay is for – and when you enter the Termination Date in the card it closes OFF the entitlements.

Client Skype’d –  OK thanks. Thought I’d check. Will org. Cheers.

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


Leave a comment

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


Leave a comment

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


Leave a comment

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