Archive for MYOB accounting FAQ’s

Customer Payments & undeposited funds

Posted by Lynley on Mar 12 2009 with 0 Comments

Question: Our company does a lot of cash sales and then we do a banking once a week or so. I enter each sale individually but when I reconcile the bank statement the cash sale amounts don’t show individually on the bank statement, rather it shows the full banking amount for the week. What do you think I am doing wrong?

Answer: It makes your bank reconciliation much easier if you see one bank deposit on the screen that matches the one bank deposit you physically make each week and see on your bank statement. Follow these steps to make your bank reconciliation easier:

1. Setup, Preferences, Banking tab, mark the option “When I receive money I prefer to group it with other Undeposited funds”

2. Setup, Linked Accounts, Accounts and Banking Accounts, and check that the Bank Account for Undeposited Funds is linked to the “Undeposited Funds” account (not your normal cheque account.)

3. Enter your individual cash sales as usual. (Whether you enter the receipt through Sales, Receive Payment or Banking, Receive Money, you should see at the top of the screen that the option “Group with Undeposited Funds” is marked.)

4. When it’s time to prepare the physical banking, go to Banking, Prepare Bank Deposit and enter the date of the banking. You will see all of the individual cash sales there waiting to be banked. Just mark the ones you wish to bank in the Deposit column on the right hand side, check the total at the bottom matches your banking, and record.

Now when you go to Banking, Reconcile Accounts, you will see bank deposits on the screen that exactly match the deposits showing on your bank statement.

Filed Under: MYOB accounting FAQ's

What do I need to have ready to set up an MYOB data file?

Posted by Lynley on Jan 11 2009 with 0 Comments

To save time and assist with the installation of MYOB accounting, you should have the following information ready for your MYOB Certified Consultant:

  • Decide which month is your “conversion month” ie the month you wish to start making entries into MYOB Accounting. This can be any month during the year but ideally it is April or the first month of your financial year.
  • Your latest set of accounts (Balance Sheet and Profit Statement) from your accountant or a list of account codes and descriptions from your previous accounting system
  • A Bank Reconciliation on the last day of the previous month (of conversion). Alternatively a list of unpresented cheques and your bank statement balance should be sufficient.Bank statements, cheque butts and deposit books should be available for your first month on MYOB accounting
  • List of debtors (people who owe you money) on the first day of the month of conversion
  • List of creditors (people who you owe) on the first day of the month of conversion
  • A copy of a well laid out invoice, statement and purchase order (if reqquired) from a supplier or from your previous accounting system. This is needed to create your new stationery in MYOB.
  • A sample of jobs or cost centres which need to be set up in MYOB accounting (if required)
  • A stock count at your month of conversion if you wish to load items to sell or you need to run a full inventory system

If this list seems overwhelming, then get ready what you can and ask your consultant or accountant to help. It is important they communicate over the installation of MYOB as both can assist you get the most from your MYOB investment. For the first 6 months to a year, you may be quite dependent on their help.#adp01

Filed Under: MYOB accounting FAQ's

Missing Transactions

Posted by Lynley on Jan 10 2009 with 0 Comments

Question: I’ve entered some transactions in December but now cannot find them. They were definitely saved and recorded.

Answer: This is a common problem at the end of the calendar year. The system (computer) date is now 2009 so December transactions have undoubtedly been recorded as December 2009 instead of 2008. We suggest you use your transaction journal or “Future dated transactions” report (under accounts) to locate these ‘missing’ entries. Redate them then move on!#adp01

Filed Under: MYOB accounting FAQ's

Entering Income Tax paid

Posted by Lynley on Jan 6 2009 with 0 Comments

Question: I have used MYOB in the past, and am used to the system where tax paid was in 9-xxxx Other Expenses. I have just bought Business Basics as our new accounts are simpler, and I have discovered that there is no longer Other Expenses category. My question is, how do I enter my income tax payment transaction.

Answer: The coding of income tax transactions is slightly more complicated if you want to get the accounting really correct. If your company is paying provisional tax then the easiest place to put it is in an asset account called Income Tax Paid. Create this account under the Current Asset heading. Your accountant will calculate your final tax for the year and produce a final Profit & Loss statement that shows the Income Tax Expense for the year (not necessarily what was paid), and a Balance Sheet that shows either a Tax Refund Due (current asset) or Provision for Tax to be paid (current liability.) Please note that if your business is paying for your own personal income tax, then the payment should be coded to Shareholder Drawings. It is important to differentiate between the two types of tax payment!#adp01

Filed Under: MYOB accounting FAQ's
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