Lynley Averis
Author Archives: Lynley Averis

Reconciling GST in MYOB (payments basis)

This is relevant for all of us who report GST on the Payments (cash) basis. MYOB AccountRight clocks up GST on the invoice basis – i.e. every time you enter a sale or purchase the GST content adds to the GST Collected or GST Paid account. To ensure you have claimed or paid the correct GST amount, do the following at the end of each GST period. You aim to prove that the total of all your GST accounts (GST Collected, GST Paid, Customs GST and GST Payments/Refunds) EQUALS your GST actually Paid (for the period). It should take you less than 10 minutes if you follow the instructions below.

1. Run the Balance Sheet as at 31/3/xx or end of GST period. Write down the Total GST (all GST accounts). In the example below it is $7,585.95

2. Print  the report under Sales called Receivables with GST.

3. Run the report as at 31/3/xx or end of GST period. Write down the GST Figure.

4. Run the report under Purchases called Payables with GST at 31/3/xx or end of GST period. Note the GST amount.

5. Run the GST form as pictured below.

6. The calculation is as follows:

And if it doesn’t balance? You could go hide in a bush but better still, have a conversation with your accountant. It is highly likely they have done the rec for you at end of year. It should balance then. You can then run the reconciliation at the end of each GST period from then on to see where things go wrong. The most likely reason not to balance is you have made entries to prior (closed periods) AFTER you have filed your GST return.

GST pic

Lock your Periods

It is essential to lock your periods once a GST period is completed. The reason for this is so you don’t continue to enter transactions into the period which is essentially ‘finished’.

  1. From the main menu, select [Setup] Preferences then Security tab
  2. Tick the option to Lock Periods: Disallow entries up to and including…
  3. From the drop-down list select the ending month of your just-completed GST period

Any adjustments or missed entries must now be made in the current (new) GST period.

Bank Feeds? Why do you need ‘em?

Automated bank feeds completely change your MYOB work flows and with it, improve accuracy and reduce the time you spend doing accounts. As the MYOB user, you get Bank Feeds on a daily or other basis. All entries come into MYOB since the last time you clicked on Get Bank Transactions. Unlike other online programs we request our feeds when we want them (we rule the feeds; they don’t rule us).

 

From the Bank Feed screen you enter a Customer Payment, Bill Payment, Spend Money, Transfer Money or Receive Money. Rules may be set up for regular entries (much like recurring). You can also Match an entry made manually. The window you get looks like that pictured below: 

Unlike some accounting programs, MYOB retains the traditional bank reconciliation process. We insist you reconcile your bank account to the statement and print the bank reconciliation for the file. Never assume just because the bank said, that things are right!

MYOB Bank Feeds are an absolute pleasure. The reliability of bank information is the best you can get as MYOB Feeds use BankLink Ltd which has supplied software to NZ and Australian accountants for 25 years. You won’t suffer from missing entries or duplicates.

Note: To use Bank Feeds you must use MYOB AccountRight Live or Essentials. With AccountRight Live the company file can live either locally on your PC or be hosted in the cloud. There is no limitation to the number of bank feeds you get or the transaction limit on your bank accounts.

Training: We recommend some on-line training to go with bank feeds. Once they start you need to deal with them and your systems and processors will be different than before. Generally you need 20 mins to learn the basics of bank feeds.

Entertainment Expenses

Entertainment expensesWe get plenty of questions on the subject of entertainment. Some new business owners get excited by the thought of entertainment but for all the wrong reasons..!

Use the table below to help code entertainment correctly (maybe have an expense code for 100% and another for 50%).  Don’t expect your accountant to spend hours wading through your entries hoping to figure out what each entry is for.  If it is not deductible then the cost should go to the shareholders drawings or current account.

Please note that the rules change. Print yourself a copy of the Entertainment Guide below to check the latest.

IRD Entertainment Guide IR268

Monthly Ageing on Customer Statements & Debtors Lists

Many of you call querying the ageing on your customer statements. In the situation here, we are dealing with ‘normal’ monthly ageing. If you have 7 day ageing or a combination of 7 day and 20th of the month following, we can also sort that to give correct reports/statements.

To correct your monthly ageing follow these steps below.

Check you have your terms of trade on the customer cards.

 

 

 

From the main menu choose Setup, Preferences then Reports & Forms.

Change to Daily Ageing and set the Periods according to the number of days per month as per the example.

 

 

 

 

 

 

 

 

 

 

 

 

Important note: Each month, before you run your statements you need to come to the screen above and alter the days according to the previous months.

Choose OK then run your statements – the ageing should be 100% correct for each customer statement but always print a couple and check.

Sample of Invoice Statement with Ageing along the bottom.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To correct ageing in the Receivables Reconciliation Report, choose the settings as pictured below

 

 

 

 

 

 

Ageing on this report will be as follows and should be 100% correct.

 

Setting up MYOB AccountRight Video Tutorial

This video tutorial demonstrates the steps to take to set up an existing business on MYOB AccountRight. It covers the setup assistant, entering opening account balances, debtors and creditors balances.  Before starting it is important to gather the information together including your last set of tax accounts produced by your accountant, your conversion balances (bank, debtors, creditor, inventory balances).

For more MYOB AccountRight “How To” video tutorials please visit our YouTube MYOB Training Channel. If you require one-on-one assistance to setup please contact us. We can check your work before you start processing transactions.

20th of the month payables procedure (To Do List method)

This method is popular for those who have large numbers of payments to make on the 20th & need a speedy process.

  1. Enter all purchase invoices for the month
  2. Print an Aged Payables [Detail] Report
  3. Tick off each purchase that you intend to pay on the 20th (you should collate/reconcile the relevant invoices/statements behind the report, ensuring they are authorised to pay)
  4. On the 20th, check that MYOB is ready to use the next cheque number or for internet payments you may wish to let the numbers be system generated & run sequentially.
  5. Select To Do List, A/P
  6. Click in the Action column beside each purchase you intend to pay
  7. Click Pay Bills (MYOB automatically collates the purchases to be paid for each supplier into one cheque and enters the Supplier Payment against the invoices, using the system date of your PC)
  8. Print a Chequebook Register report for the 20th, sorted by ID
  9. Write out the cheques accordingly or make your payments via bank transfer.

Note: We may use this method to create a payment ‘batch’ for our bank. Check your linked accounts are set up correctly and test the method first in Clearwater or with a couple of dummy payments.

RetailManager – Searching & Reprinting Video Tutorial

This video tutorial shows you how to use the search facilities within MYOB RetailManager. The options include looking via the Customer information, the stock information, via staff code or by supplier name. The other method is via Lookup (Cntl + L). We also cover how to reprint the last of each transaction type.

For more MYOB RetailManager “How To” video tutorials please visit our YouTube MYOB Training Channel. If you require one-on-one training please contact us