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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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Business Finance 101 – RESC – Reportable Employer Superannuation Contributions – a Summary

Business Finance 101 – RESC – Reportable Employer Superannuation Contributions – a Summary

Business Finance 101 – RESC – Reportable Employer Superannuation Contributions – a Summary

To ensure fairness in the application of income tests and to ensure that the government assistance is consistent and fair based on gross incomes, the Federal Government requires employers to record the reportable employer superannuation contributions figures on payment summaries from the financial year 2009-10 onwards.

Reportable Employer Superannuation Contributions (RESC) are the portion of the employer contribution that the employee has influenced, for example superannuation contributions made by the employer under the terms of a salary sacrifice agreement, made in a financial year (1 July to 30 June) to a superannuation fund for an employee.

Reportable employer superannuation contributions do not include – super guarantee contributions (SG), contributions mandated by industrial agreements that the employee does not influence, or post tax member contributions.

Which types of super payments are RESC?

Legislative Employer Contributions (Super Guarantee (SG))                                 No

Refers to the federal legislation based employer contribution of 9.50% in 2015-2017 tax years currently. Known as Concessional Contributions – the employer gets a tax concession (deduction) at year end.

Group Contract Employer Contributions such as a Collective Agreement          No

Refers to agreement such as those found in awards and enterprise bargaining documents that result in all affected employees being entitled to a greater employer contribution.

Employee Personal Deductions – treated as an AFTER tax deduction                 No

The Gross Payment amount on the employee’s payment summary is not reduced by this deduction. It is also known as Non-Concessional contribution.

Additional Employer Contributions BEFORE tax                                                         Yes

These are contributions which exceed what the employer needs to contribute.  The effect is for the gross payment to the employee is lower than what it would otherwise had been. Also known as Concessional Contribution.

Employee Personal Deductions – treated as a BEFORE tax deduction                 Yes

This is known as a salary sacrifice deduction and results in the Gross Payments figure on the employee’s payment summary being reduced. Also known as Concessional Contribution.

NOTE –

Superannuation Guarantee Act exempt employees  YES – If employee negotiated or influenced

If the employer choose to pay superannuation for SGA exempt employees, those contributions will be reportable as RESC only if the employee has negotiated and influenced the decision of the employer.

If the employer has made the decision themselves to go ahead and pay super in the above scenarios even though they may not be required to (by award or collective agreement), then that super will not be reportable as long as the employer can substantiate that this was done for example for Administrative Simplicity and it has not been influenced by the employee.

For more information refer to ATO for Reportable Superannuation ContributionsInstructions for employers (NAT 72916)

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

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

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

If you are a business in the building and construction industries, you may be wondering how to generate in MYOB a Taxable Payments Annual Report (TPAR) – and when is the due date?

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

1 – ATO Requirements

From the ATO website latest page 23 June 2016 –

Taxable payments reporting – building and construction industry

Businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year.

You need to report these payments to us on the Taxable Payments Annual Report by 28 August each year.

To make it easier to complete the annual report, you may need to check the way you currently record your contractor payment information.

The information reported about payments made to building and construction contractors is used in our data matching program to detect contractors who have not either:

  • Lodged tax returns
  • Included all their income on tax returns that have been lodged.

2 – MYOB – The steps to set up and generate the report are –

How to track reportable payments in AccountRight

Once you set up MYOB, you can start marking transactions as reportable including –

  • Spend Money payments made to suppliers as reportable. You can also set up a supplier so that any payments for them are automatically included in reporting.
  • Bills and Orders recorded for suppliers. Payments received against these transactions will be included in the report.

You can then generate a report that will help you complete the ATO forms, or create a report file you can lodge electronically.

Lodging your report electronically

You can lodge your report electronically, using the ATO’s Business Portal. If you haven’t already set up access to the Business Portal, you should do this so you’ll be able to lodge the report when it’s due. See the ATO website for more information.

Set the reporting preference

  1. Go to the Setup menu > Preferences. The Preferences window appears.
  2. Click the Reports & Forms tab and select the preference, I Report Taxable Payments Made to Contractors.
  3. Click OK.

When you record a Spend Money or Purchase transaction, the Reportable Payment option will appear in the transaction window. Select this option to mark the transaction as being a reportable payment.

  1. Set up suppliers to report
  2. Go to the Card File command centre and click Cards List. The Cards List window appears.
  3. Click the Supplier tab.
  4. Click the zoom arrow of the card you want to set up. The Card Information window appears.
  5. Click the Buying Details tab.
  6. Select Report Taxable Payments. In the message that appears, choose whether to report any existing transactions for the supplier for the current financial year. Note that you can later remove payments from reporting.
  7. Click OK. The Cards List window reappears. Whenever the card is selected in a Spend Money or purchase transaction, the transaction is marked as reportable by default. 

To create the taxable payments report –

  1. Go to the Purchases command centre and click Report Taxable Payments. The Taxable Payments Assistant opens.
  2. Click Next. The Company Information window appears.
  3. Enter any company information that doesn’t appear by default.
  4. Click Next. The Review window appears.
    In this window, you can click Review Your Transactions to:

Review all transactions marked as reportable

Change the reporting status of transactions.

  1. Click Next. The Create window appears.
  2. Click View Taxable Payments Report. The Taxable Payments Annual Report (Detail) report appears. You can use the report to help you complete your ATO forms, or to keep for your records.
  3. If you’re lodging the Taxable Payments Annual Report file:

        Click Create Taxable Payments File. The Save As window appears.

        Select the location to store the file and click Save.

  1. Click Finish to close the assistant.

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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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?

We start with the ATO requirements, then how to set up and create the report in Reckon/Quickbooks.

ATO Requirements

From the ATO website latest page 23 June 2016 –

Taxable payments reporting – building and construction industry

Businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year.

You need to report these payments to us on the Taxable payments annual report by 28 August each year.

To make it easier to complete the annual report, you may need to check the way you currently record your contractor payment information.

The information reported about payments made to building and construction contractors is used in our data matching program to detect contractors who have not either:

  • lodged tax returns
  • included all their income on tax returns that have been lodged.

Reckon/Quickbooks – 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 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 it 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


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Reckon/Quickbooks – Accounts Hosted and PC – How to set up and use ABA files to pay creditors – simplify!

Reckon/Quickbooks – Accounts Hosted and PC - How to change the email message for sales invoices

Reckon/Quickbooks – Accounts Hosted and PC – How to change the email message for sales invoices

(> means click)

Here is the procedure of how to set up and use ABA files to pay creditors (For Reckon Hosted and some recent Quickbooks versions) –

Before you can prepare an electronic payment file, you need to complete the following steps.

First – Set Up the a bank account in R for Online Banking

  1. Open the bank account you wish to enable for online banking
  • Go to the Lists menu, and click Chart of Accounts. The Chart of Accounts opens.
  • Select the bank account you want to enable, right-click and then select Edit Account. The account details open ready for you to edit.
  1. Click the Online Bank Details
  2. Click to select the Online Account Access check box. R makes a number of fields that relate to online banking active. Enter mandatory information about the online bank account set up with your bank.

Complete the following details:

  • Click the Financial Institution drop-down arrow and select the bank. This may take a few seconds to process.
  • Enter the code in the Branch Code field to identify the branch for the financial institution. This code is known in Australia as a BSB number.
  • Enter the account number in the Account Number
  • Click the Account Type drop-down arrow and select the type of account.
    You may choose cheque, savings, credit card, money market or line of credit.
  • Click to select Include Balance Record if you want to include a balance record for online banking files (ABA format) that you generate. This applies if you plan to pay employees or suppliers by generating online banking files (ABA format) in Reckon. Most banks require online banking files to include a balance record within the ABA file format. You should check with your financial institution first.
  • Enter an APCA number in the APCA number field for this account if it is different from the Default APCA number for your company. The APCA number entered in account details always overrides the default APCA number entered in company banking preferences for all online banking transactions using this account.
  1. Click Save & Close.

Second – Set up Suppliers and Employees for Online Banking

Updating Suppliers:

  1. Go to the Suppliers Centre then >Suppliers Tab >
  2. >Double Click a Supplier
  3. >Bank Details Tab >Enter Account Name (of Supplier), their Bank Account Number, Bank Name, Branch Code (BSB eg 083245, 6 digits) OK
  4. Repeat for all suppliers to be paid using ABA files, or that supply a bank account to pay (not Bpay suppliers usually)

Third  – Process Transactions and Create Online Banking File

Pay Bills

This involves processing transactions as normal, but at the Pay Bills window, Reckon should identify payments set up for banking online and have those ready to include when creating an online banking file. So ensure at the bottom the bank you set up for ABA id=s selected, and next to that the Payment Method is “Bank Online”. Finish transaction with Pay Selected Bills. Then Pay more Bills for the next suppliers to pay or Done to finish.

Create an online banking file:

  1. Go to the Online Banking Centre: > (top menu) Banking menu and click Online Banking Centre.
  2. Scroll to the section To Bank (at bottom).
  3. Choose the date you want the payment to be made, using the calendar from the Date to be Processed field or today’s date as defaults.
  4. Enter a payment description eg Creditors or Bills or Pays. If no payment description is entered, a description of “payment” will display in the ABA file by default.
  5. Tick payees from the list. Each payee must have a bank account defined for them under their employee or supplier record. This includes details for Bank Account Name, Number and Branch Code. In addition, employees must have an employee number.
  6. Click Preview ABA File if you wish to review the ABA file before creating it.
  7. Click Create ABA File. Reckon displays the standard Windows Save As dialog box with *.ABA entered in the file name at the end.
  8. Enter a name for the online banking file (leaving the .ABA) and choose a location to save it, such as desktop. Reckon provides a default folder within the installation directory called Export Files/ ABA Files. You may choose to save the ABA file in this directory, or in any other directory of your choice.
  9. Click Save.
  10. Your ABA file is now ready for upload to the relevant financial institution.
  11. Follow their online instructions to upload a payment file.

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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Cashflow Tips – Cash Flow and Budgeting – Are they the same?

Cash flow Tips – Cash flow and Budgeting – Are they the same?

Cash flow Tips – Cash flow and Budgeting – Are they the same?

While it can be said there are similarities between a cash flow forecast and a budget because they seem to show similar information, be aware there is a difference and each method has different uses. Both are great tools in the accurate financial management of the business or organisation.

Cash flow forecast – shows details of when the actual cash – receipts and payments are planned and expected to happen.

  • It predicts when the actual inflow and expenditure occurs in the actual bank accounts.
  • It doesn’t consider accruals and adjustments such as depreciation, only the 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, showing HOW they will be paid – eg show loan money inflow and payments out
  • The full year cash flow forecast is usually shown on a month by month basis, or can be broken down into fortnightly or even weekly depending on the requirements

Budget – shows 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 usually prepared over 12 months, and focuses on profit. In addition:

  • Accruals and other non-cash adjustments such as depreciation are included
  • Large capital purchases are be included
  • A budget also provides a benchmark to then monitor performance – after each month’s 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 above comes in.

Both Cash Flow and Budget reflect the planned objectives the organisation is aiming 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

For 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.

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 40-64 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! 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 – 5 tips for better business cashflow

Cashflow Tips – 5 tips for better business cashflow

Cashflow Tips – 5 tips for better business cashflow

One of the things many business find a burden is that cashflow can easily get out of hand and several studies suggest that financial miss-management is one major contributor to business failure. Here are 5 tips to help get cashflow under control – remember it is an on-going monitoring that keeps you on top – measure and tweak, measure and tweak…!

1.  Look at who owes you – WEEKLY – check your debtors/accounts receivable report every week – get onto those tardy payers – send Statements every Fortnight! A month is too big a gap and easy to slip the mind…

2.  Plan for highs and lows 
Be aware of possible lean cashflow patches coming up and plan for them!. Avoid major purchases from your business’ working capital unless you are sure you have cash to cover it. A cashflow budget will help you see this – eg when revenue is down on forecast you expected (eg the average monthly required, or based on same time last year, or certain % growth if that is the current trend).

3. Have finance products working to your benefit
Overdrafts, premium funding, lease facilities and cashflow funding products can all be excellent tools to help boost a business’ cash. Even the business credit card can be a good way to ease the squeeze as long as you are sure the debt can be paid before interest kicks in, which is the best way to handle credit cards!

4. Avoid penalties
Keep on top of taxes and compliance to save the cost of fines… and the stress!

5. Keep your hands out of the till.
Make cash drawings for personal purposes as minimal and follow conservative cashflow forecasts. Take a weekly wage for yourself so it’s easier for the bookkeeper/accountant, and gives stability to regular expenses and drawings so you can PLAN better!

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