MYOB

Been stung with a late payment fee because you’ve forgotton to make IRD payments?

Use IRD software to create a personalised calendar of tax deadlines for your own business. Copy the following link into your browser to start the due date calculator. In MYOB software, set up recurring entries (with due date reminders) to prompt you to make payments.

www.ird.govt.nz/calculators/tool-name/tools-t/calculator-due-dates.html

Tax Calendar 2010 - sample

Changes in payment date

Due date falling on weekend or public holiday – all tax types

If a due date falls on a weekend or public holiday, the date moves to the next working day. Your return or payment will also be treated as being on time if it’s postmarked on the next working day.

Legislation changes

From the start of the 2009 income tax year (1 April 2008 for most people) GST return filing and payment dates, where they are not already, will be aligned to the income tax balance date. Provisional tax payments will also be due on the same day as the GST payment for that period.

For example, if your balance date is March and you pay GST two monthly, your first instalment of provisional tax will be due 28 August with your July GST return and payment.

For a lot of people spending whole days out of the office on training courses simply isn’t an option – they’re far too busy running their business! But this doesn’t take away the need for training or up-skilling.

They only take half a day & focus on critical issues using demonstrations, slides, real examples and discussion. Attendees can take away what they learn and immediately apply it to their own business+ bring their own questions. Seminars are delivered by some of NZ’s most experienced and qualified MYOB’ practitioners who themselves are small business owners. Generally there are less than 8 participants.

9 reasons to attend?

1. Keep up to date with best-practice techniques using MYOB software
2. Prepared and delivered by experienced MYOB Certified Consultants
3. Discounts on upgrades on new software
4. Prepared and delivered by experienced MYOB Certified Consultants
5. Practical presentations with demos and discussion
6. Free one-on-one follow up consultation available
7. Centrally located (Newmarket) with free parking
8. Morning sessions (only 3 hours)
9. Low cost
10. Fun!

Upcoming October Sessions

• Accounting for Non-Accountants -  Thu 8th Oct (9-1pm) $240+GST
• MYOB: Fixing the Common Problems – Fri 9th Oct $197+GST
• MYOB Payroll: Fix Problems & Legislation Update – Tue 13th Oct $197+GST
• MYOB: A Beginners Guide – Thur 15th Oct (9-3pm) $320+GST
• Process Accounts Faster with MYOB software – Fri 16th Oct $197+GST

#adp01

We have more questions on this than almost everything else (put together!)  Most people using MYOB don’t do the GST rec but leave it to their accountants at the end of the year. But, you should really do it and we have developed a simple worksheet with pictures you can easily follow.

Click on the link below to open the .pdf and print a copy for yourselves. If you’re on Payments basis (most of you are) run the reports concerned and plug in your figures (best start from 1/4/09) and check the two GST returns already filed. If you’re on the invoice (accrual) basis, follow the method we give you.

http://www.accountingtraining.co.nz/MYOB-files/GST-reconciliation-for-payments-basis.pdf

Good luck & let us know how you go!

Regards Lynley#adp01

The decision geneally comes down to the owner and their previous experience. Those who have had a computerised accounting system in the past can see the benefits and the pitfalls. They wouldn’t contemplate the idea of a manual system and realise they need an efficient accounting system to be serious and compete in the market place.  They may also be aware, that the easiest time to set up a computer based accounting system is from Day 1.

On the other hand, another owner may not have prior experience and be perfectly happy (for years) using a manual cashbook. For them to change, they need to see benefits both in efficiency and cost saving. They may reluctantly change after a heart-to-heart with their accountant. Occasionally owners computerise only one part of the system (typically invoicing) but all other parts are done manually. I know a business owner (an accountant) who uses a full computerized system but still calculates his GST using a spreadsheet.

All that aside,  more business owners are moving their businesses onto computerised systems. It is usually only the very small business (the self-employed or sole traders) who continue to work with a manual handwritten cashbook and handwritten invoices. These small businesses are heavily reliant on their accountants.  They generally keep an eye on their bank statement for a financial ‘reading’. They have only a vague idea of their ‘profit’ until 6 months after the end of the financial year (when they get their accounts).

Advantages of computerised accounting

Automatic ledger entries

The general ledger accounting systems gets automatically updated once the entry in a subsidiary ledger is posted. For example, when invoicing a debtor through the Debtors Ledger there is an automatic entry made to the general ledger. This means if all entries are recorded the general ledger is up to date.

Accounts always in balance (Debits = Credits)

Computerised systems recognise double entry bookkeeping where for every debit entry there is a corresponding credit entry made. The computerised accounting system accounts are always in balance.  For example, when entering a payment, the system will not allow you to record a transaction unless you have allocated to an expense (or other) account.

Accuracy and speed of automatic calculations (such as GST and invoices)

Computerised systems have automatic calculations built in and therefore there is a slim chance of making mistakes calculating invoices and GST. The system automatically calculates GST inclusive and exclusive figures. This means GST reports and forms provided all relevant entries have been made. Invoicing is usually a breeze because all lines (quantity x price) is calculated automatically.

Automatic production of a trial balance from ledger entries

Computerised systems create a trial balance automatically. For example, when electricity is paid, the Bank account (Asset) gets credited and Electricity (Expense) account gets debited. Both figures would be included if you were to run a trial balance. From a trial balance we produce a Profit and Loss Statement and a Balance Sheet and both are generated in seconds.

Potential to create customised reports and provide additional analysis

Computerised systems allow you to customise professional looking reports (which may include your company details and logo). These reports provide additional analysis which may be needed by the bank, shareholders, suppliers and/or the owners. Far less time is spent creating reports than using a manual system.

Lower accounting fees?

This may or may not eventuate and depends on the ability of the business to produce an accurate set of accounts from their computerised system. With competent set up and good training and accurate inputting, then yes, accounting fees should definitely be lower as you are reducing the workload of your accountant doing your bookkeeping.  If your fees increase, then ask why! You can always ask for timesheets to justify your accounting fees.

Computerised files produced by businesses  and supplied to accountants vary from very bad to outstanding. If  your file is on the ‘bad’ end of the scale it will need many corrections done! Good communication between you and your accountant is vital.#adp01