Training you – Solving Problems – Or We do your books for you! For Business owners and fellow bookkeepers!

Bookkeeping – Train Troubleshoot or we do it for you! MYOB Reckon Xero


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XERO – Taxable Payments – When is it due and how to set up and report Taxable Payments Annual Report (TPAR)

XERO – Taxable Payments – When is it due and how to set up and report Taxable Payments Annual Report (TPAR)

Taxable Payments – When is it due and how to set up and report Taxable Payments Annual Report (TPAR)

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 Steps to set up and generate a Taxable Payments Annual Report from XERO 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 detail.

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

How to track reportable payments in XERO

Xero lets you identify payments to contractors that you need to include in the report. The report:

  • Includes paid bills and spend money transactions (including overpayments and prepayments) from all accounts;
  • Excludes credit notes and payments made in other currencies;
  • Only includes organisations or contacts with Australian addresses.

You can filter out individual payments after you’ve run the report. If you’ve withheld tax because no ABN has been quoted you can either:

  • Enter this manually on the paper report, or
  • Continue to report it in your Activity Statements.

First you set up a Contact Group, then set up Rules, then Export the Report –

1. Create contact group

Create a contact group for contacts you’re needing to include in the Taxable Payments Annual Report, then add each contact to this group.

You can create more than one contact group if your Taxable Payments Annual Report is likely to produce more than 2500 invoice lines. Make sure your contacts belong to only one of the contact groups you’ve created.

If you don’t create a contact group, the rules you set up to run the report will find all contacts you’ve paid.

2. Set up or edit rules for contractors and reportable payments

The report identifies contacts you’ve made taxable payments to, based on the rule.

1.  In the Reports menu, select All Reports.

2.  Click Taxable Payments Annual Report.

3.  Select the year covered by the report.

4.  Select either:

  • Set up Rules to set up your first set of rules; or
  • Edit Report Rules to edit your rules.

5.  In Payments to, select either All contacts or an individual contact group you’ve set up for your Taxable Payments Annual Report contacts.

6.  In Paid from select either:

  • All accounts (if you’ve selected an individual contact group in the Payments to dropdown); or
  • An individual expense account from your chart of accounts.

7.  (Optional) Select Add Rule to add more rules, up to 12 in total. You can delete a rule by selecting x at the end of the Paid from field.

8.  (Optional) Select the Reset all previously deselected payments checkbox to reset any excluded payments or contacts.

9.  Click Save.

3. Export report

You can export the Taxable Payment Annual Report in either ATO or CSV format.

(i)  ATO format

Submit your report to the ATO through their online services Business Portal.

1.  Check your contact details and organisation settings are complete. This includes your legal (trading) name, Australian Business Number, phone number, and a physical address in Australia.

2.  Click Export ATO Format.

(ii)  CSV file

Click Export CSV to generate a report for your own review.

For example, you could use this to help you complete the ATO’s paper-based Taxable Payments Annual Report (ATO website).

You can’t submit the CSV file to the ATO.

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

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

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Business Tax Tips – Taxable Payments Annual Report – Building Industry (and others to be added?)

Business Tax Tips – Taxable Payments Annual Report – Building Industry and others to be added

Taxable Payments Annual Report – Building Industry and others to be added

Are you a business in the building and construction industry? You will probably need to report the total payments you make to each contractor for building and construction services each year.

If you’re a business that is primarily in the building and construction industry, you need to report payments you make to contractors if both of the following apply:

  • You make payments to contractors for building and construction services
  • You have an Australian business number (ABN)

Contractors can be sole traders (individuals), companies, partnerships or trusts.

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

Activities and services that are considered to be building and construction are broad. Some examples include architectural work (including drafting and design), certification, decorating (including painting), engineering, landscaping and construction, project management and surveying.

Payments you need to report

Report only payments you make to contractors for building and constructions services.

Contractors can be sole traders (individuals), companies, partnerships or trusts.

If invoices you receive include both labour and materials, whether itemised or combined, you report the whole amount of the payment, unless the labour component is only incidental.

The definition of building and construction services is broad – it includes any of the activities listed below if they are performed on, or in relation to, any part of a building, structure, works, surface or sub-surface:

  • Alteration
  • Assembly
  • Construction
  • Demolition
  • Design
  • Destruction
  • Dismantling
  • Erection
  • Excavation
  • Finishing
  • Improvement
  • Installation
  • Maintenance (excluding the maintenance, service or repairs of equipment and tools)
  • Management of building and construction services
  • Modification
  • Organisation of building and construction services
  • Removal
  • Repair (excluding the service or repairs of equipment and tools)
  • Site preparation

The ATO website tells us – (From Here)

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 tells us 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.

The details you need to report about each contractor are generally found on the invoice you should have received from them. This includes:

  • Their Australian business number (ABN), where known
  • Their name and address
  • Gross amount you paid to them for the financial year (including any GST)

We use this information to identify contractors who haven’t met their tax obligations.

Find out about:

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

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


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Reckon – Single Touch Payroll – STP – reporting in Reckon One – Accounts Hosted – Accounts 2018

Reckon - Single Touch Payroll – STP - reporting in Reckon One – Accounts Hosted – Accounts 2018

Single Touch Payroll – STP – reporting in Reckon One – Accounts Hosted – Accounts 2018

We wrote the other week all about what Single Touch Payroll (STP) Reporting is about, and what the ATO tells us.

Reckon, an Australian company, is a popular accounting software for many small & medium businesses.

Here is how they are preparing for STP, from the Reckon and STP single touch payroll page

We’re supporting STP across our online and desktop range. The following products will be ATO compliant by 1 July 2018*:

  • Reckon One;
  • Accounts Hosted;
  • Reckon Accounts 2018 version onwards;
  • Payroll Premier 2018/19 version onwards.

We’ve developed a new application called GovConnect STP that will make meeting your STP requirements quick and easy. GovConnect STP acts a gateway to the ATO enabling you to view and lodge your STP reporting no matter what Reckon product you use.

✓ Lodge directly to the ATO
✓ Review before you submit
✓ No extra cost

✓ ATO status messages
✓ Review past submissions
✓ MFA secure

Single Touch Payroll Checklist

Reckon also have a created a checklist with some important questions to consider to help you get prepared for STP. Sign up to download.

And from the Reckon Community, Rav the Community Manager, explains further detail

  1. You won’t need to do anything other than upgrade to the latest version of Reckon Accounts Hosted which will be released in June.
  2. No, we are not using an intermediary to lodge.
  3. There is no additional cost to lodge using SBR through Reckon Accounts Hosted.
  4. Users cannot do testing. All data transmitted through the service will be seen as live data as the ATO does not have a mechanism to set a lodgement as test data (aside from their test service which is for development use only and uses specific data).

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

DOWNLOAD a FREE “Bookkeeping Quarter Checklist” to get organised! CLICK HERE

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


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Xero – Single Touch Payroll – STP – Reporting in Xero

Xero - Single Touch Payroll – STP - Reporting in Xero

Xero – Single Touch Payroll – STP – Reporting in Xero

We wrote the other week all about what Single Touch Payroll (STP) Reporting is about, and what the ATO tells us.

Xero is a popular accounting software for many small & medium businesses. Here is how they are preparing for STP –

From the Main Xero STP Page

How will Xero roll out STP to employers? 
We’ll roll out STP progressively from 1 July rather than switch everyone on at once. This will allow us to migrate the massive number of Xero Payroll users in the smoothest fashion possible. When it’s time for a payroll administrator to opt in to STP, a banner will appear on the pay-run screen, and you’ll be able to opt in with just a few clicks.

What about the ATO’s 1 July deadline to begin using STP?
The ATO has granted Xero subscribers a deferral until as late as 31 December 2018. We expect to have all Xero users on STP well before that date. Until Xero prompts you to make the switch, you can continue processing payroll as normal and remain fully ATO compliant without any penalty. It’s that simple.

How can employers prove to the ATO that they received a deferral, if asked?
Xero subscribers can use the ATO reference number 49410109.

When will I be prompted to make the switch?
We’ll prioritise roll-out to large employers with more than 20 staff. We’ll let you know when it’s time to make the switch with a banner on the pay-run screen. At that point, you can start filing seamlessly with the ATO.

If I begin using STP after 1 July, do I have to play catch-up in reporting to the ATO?
No. Each STP filing includes all year-to-date payroll information. This feature, along with the ATO deferral, will make for a smooth experience when you begin using STP.

Does STP cost extra in Xero?
No. STP compliance is part of the Xero product offering.

Will STP change my current payroll workflow in Xero?
The aim of our release is to ensure minimal disruption.

From the Xero Blog –

Xero will have a simple set-up process for Single Touch Payroll. During the STP setup, Xero will display your software service ID (SSID).You’ll need to provide it to the ATO in one of two ways. Either: 

Once you’re setup, the option to report a payment to the ATO will be presented for each pay run and your payroll information will be filed with the tax office.

Also, due to the filing requirements for STP, you’ll only be able to revert the latest posted pay run for each pay calendar after you’ve opted in.

DOWNLOAD a FREE “Bookkeeping Quarter Checklist” to get organised! CLICK HERE 

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

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


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Business Tax Tips – What is Single Touch Payroll (STP) Reporting

Business Tax Tips – What is Single Touch Payroll (STP) Reporting

What is Single Touch Payroll (STP) Reporting

STP – Single Touch Payroll – means the software sends the pay-run details as well as the super due, as an amount that is total (year-to-date) as at each pay-run, to the ATO. It means Payment Summaries will not be required at Year End – the ATO will have all they need already, by the last pay-run that is recorded in June!

Preparing

  • Businesses with 20+ employees MUST be ready by 1 July 2018 – the software is due to be ready in June 2018
  • Businesses with 19 or LESS employees – must start next year 1 July 2019 – but you CAN opt-in to start 1 July 2018 if you choose!

Support  –

1.   ATO STP info site www.ato.gov.au/stp. – and their Fact sheet – From the ATO siteWe have produced the following summary factsheet as a handy resource: Single Touch Payroll factsheet (PDF 228KB) This link will download a file

Single Touch Payroll (STP) aligns your reporting obligations to your payroll processes.

You will report to us each time you pay your employees. Your pay cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly.

The information you send us will include your employees’ salaries and wages, allowances, deductions (for example, workplace giving) and other payments, pay as you go (PAYG) withholding and superannuation information.

2.     Update to the latest version as it arrives – The software will notify us when the STP features are ready – I suspect we may just use the ABN to identify with the ATO – and/or an AUSKEY – they haven’t specified how yet

3.     Software that is ready https://www.absia.asn.au/page/product-catalogue

4.     Consulting – Paul will be available for either – onsite – or remote login with Teamviewer in June, as the features are available, if you need help setting up.

5.     Next weeks – STP and MYOB, Xero, Reckon – keep informed: subscribe to the right software

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

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


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Case Study – Let down by accountant and then a bookkeeper – They needed the books up to date and accurate!

Case Study – Let down by accountant and then a bookkeeper - They needed the books up to date and accurate!

Case Study – Let down by accountant and then a bookkeeper – They needed the books up to date and accurate!

Disappointment was clear when she told me how let down she felt of the promises by an accountant to have the books and year-end tax return all handled  but the accounts were months behind! Then she appointed a bookkeeper who was a little new to the Xero software, but the bookkeeper still had the main Bank and Merchant payments with unreconciled transactions dating back 8 months to July!!! And communication with both was frustrating!

She needed a plan of action!

(There are 5 easy steps to planning anything – start where you are at, decide what outcome/state you want to have, what that state/position will cost in money (budget to maintain) what you need to outlay set-up and get to that state, and what action we need to take now to get there.)

WHERE it was at –

She had set up the bank feed, and started to learn how to do the entries in the Xero accounts. But it was slow learning this new software, and she wasn’t sure if she was entering the transactions correctly. The expenses she paid personally, were entered, but they came out of the business bank account – was that correct? The customer payments were simple. To keep up to date with who had paid, she entered them also, but some paid by direct transfer, others by EFT and she didn’t realise only the TOTAL for the day settled to the business bank account.

When we reviewed the company file, the bank  had half the transactions with notes “What is this for?” since back in July 8 months ago!!! The customer payments to the bank didn’t match many deposits, as the Square Credit Card Merchant takes its % fee out before on-sending the balance – so the software can’t match them! There was a family loan to the business to assist with taking on a new shared office with another professional. Most of all, like many small business owners, she didn’t know how much the books can help her improve the business, nor how powerful a One-Page Business Plan and quarterly checklist for the accounts can be!

WANT to have –

She was sure the books could be up to date every month. And communication could be responsive and helpful – YES!

COST to have that state – 

A monthly cost would need to be paid, as she was not enjoying the books, and wanted to do what she knew best – her service and products! She wanted to know if it could be done for $100 based on her current small business

NEED to spend to get there –

Getting it back on track was the key – what would it cost, and what would need to be done?

NOW what action to take –

After meeting Paul Humphreys of Account Keeping Plus, at a local council event 6 months ago, luckily she had kept his card (it stood out because it came with a chocolate attached!). He was easy to talk to and helpful – I’ll give him a call and see what he is like.

Well after several tips on ways to promote my business and market online, he explained how monitoring a few key indicators is so important to know where the business is going and if it’s achieving the goals I set. He explained how the different payments arrived in the bank and the need for clearing accounts and loan accounts for the family loan.

We arranged to meet, and I was given a complimentary Business Score –and later he emailed me the results that gave me a Business Plan On a Page – it really got me focused on the weak points!

He is now getting me up to date – finally! What a relief!

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


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Cashflow Tips – 5 tips to get more from your accounts/bookkeeper – or how to be a better bookkeeper

Cashflow Tips - 5 tips to get more from your accounts/bookkeeper – or how to be a better bookkeeper

Cashflow Tips – 5 tips to get more from your accounts/bookkeeper – or how to be a better bookkeeper

Do I have the most suitable software for the business needs? Should I upgrade to the next level or another brand? We can help you for FREE – call for a chat!

  1. Expenses we can reduce? What areas of expenses have increased, and are there better deals to reduce costs?
  2. What areas/products of sales are growing? Can we see a trend in products or categories that are underperforming? What about the best performers – should we focus on building them more?
  3. Checklist of the bookkeeping tasks so we don’t forget? Do you have a checklist – there can be at least 10 and more tasks each week/month – invoicing, paying suppliers, payroll, super, Workcover, collating customer payments, reconcile bank statements, reconcile credit cards, petty cash – if you want a template to track the main bookkeeping tasks, call or email info@accountkeepingplus.com.au 
  4. Better Reports for more insight? What other reports does the software offer? I find that exploring other reports and seeing what customization is possible can reveal new reports and insights that help make better decisions!

DOWNLOAD a FREE “Bookkeeping Quarter Checklist” to get organised! CLICK HERE

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

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