Case Study 1 - Setting up your business file for the first time
This case study outlines the first initial step by step assistance and training which Greg provided to assist a client in setting up and operating their own business file. (The client had kept written records of business transactions to date.)
- installing the MYOB program file.
- selecting a compatible Chart of Accounts which could be modified to suit the business.
- setting up of Payroll Items.
- processing pays which had already been paid.
- tracking superannuation and PAYG liabilities.
- setting up GST.
- entering cards for customers.
- setting up the Jobs list for use with sales and purchase entries
- customising Sales Invoice formats
- entering Sales.
- receiving Sales payments.
- entering cards for suppliers.
- paying suppliers. (This client chose not to use the accrual process since their BAS
was paid on a Cash basis.)
- adding new accounts to the Chart of Accounts.
- reconciliation with Bank Statements.
- preparation of their BAS which included:
- printing a GST Detail report, and checking the GST code applied to all transactions
- printing a GST Summary report
- printing the PAYG Summary report for the BAS period
- reconciling the PAYG Payable liability account with the total shown in the Summary
report mentioned in point “c”.
- setting up the BAS link facility required for the program to calculate the BAS.
- checking that figures shown on the BAS report match the GST Summary Report figures.
This client maintained contact with Greg until they felt totally comfortable with the program.
Case Study 2 - 'Forensic' Bookkeeping
Receipt of a telephone call from a new client referred to Greg by his client's accountant, introduced him to what he refers to as “forensic” bookkeeping, since data had been incorrectly entered. There was no indication of misappropriation of money.
Initially this work required a review of the client’s Sales and Purchase entries since the Receivables and Payables Reports would not reconcile.
A report outlining where incorrect data entries had been made was prepared for the client’s accountant, and the following decisions were made.
- The accountant would complete a Tax Assessment and provide a Balance Sheet as at the end of the just completed financial year.
- A new MYOB file, using the Balance Sheet figures for account opening balances, would be created for the client’s business.
A major consideration was that a new person had entered three months of the client’s data for the new financial year correctly, and this had to be included in the new file.
Greg created this file by:
- Importing the following MYOB data from the old file:
- Chart of Accounts
- GST Codes
- Customer Lists
- Suppliers Lists
- Sales which had been entered for the new year
- Sales receipts which had been received.
- Other money which had been banked
- Purchases which had been made for the new year
- Payments which had been made
- Other money which had been spent
- Entering all Account Opening Balances from the accountant’s Balance Sheet
- Completing reconciliations of all accounts
- The file which was created is still being used today.
- The client received a very sizeable credit adjustment in the next BAS which was submitted.
Case Study 3 - Calculation of outstanding taxation liabilities
Following a police investigation into an alleged fraud, Greg was engaged to identify the client’s outstanding PAYG and Superannuation liabilities. An employee who was engaged for a short time after the discovery of the alleged fraud, had also neglected to make BAS payments.
The alleged fraud had occurred some time before his engagement. An audit had been conducted by an Australian Taxation Office (ATO) officer in consultation with a client committee member.
The ATO officer agreed to provide Greg with a copy of information which had been used to calculate outstanding PAYG liabilities owed by the client.
In comparing the ATO information with data that the client had available, it became apparent that some of the ATO information was not accurate. This had implications for the calculation of outstanding superannuation payments for employees. This information was conveyed to the ATO.
- calculated the outstanding Superannuation Guarantee Charge, Interest and ATO charges which were payable to each employee who was involved.
- Calculated the outstanding BAS (including PAYG) liabilities which were outstanding.
- Successfully sought remission of all Penalties and General Interest Charges which the ATO had applied to the client’s Integrated Account.
Case Study 4 - Establishment of a Quickbooks File
A client had established a small fitness Gymnasium, and was keeping his records using an Excel spreadsheet. He contacted me via my Website, requesting that I assist him with:
- the establishment of a Quickbooks file.
- training on how to use it
Greg provided assistance in the following areas:
- Purchase of a Quickbooks program
- Installation and set up of the File
- Negotiation of the different Sales Items as part of his Income
- Entry of Expense Accounts used to date
- Training him, and his fiancé in how to:
- record Sales and Sales receipts
- Set up new Expense and Income Accounts
- Set up, and use, repeat transactions
- Reconcile the file Accounts with the Bank Statements
- Understanding the difference between business transactions and personal transactions which were to be recorded as Equity
- Reviewing of data entry which he had done, as part of the process of preparing and lodging each BAS
When married, their accountant decided that they should form a business partnership which required the creation of a new file as at the first day of a new BAS period
- Reconciliation of Bank Accounts as part of the calculation of the just completed BAS
- Indentifying unpaid expenses and unpaid Sales
- Importing the existing Chart of Accounts
- Entering the saved repeat transactions
- Preparing a Balance Sheet Report as at the completion of the BAS period
- Entering of the Balance Sheet figures in the new File
- Monitoring of the development of the new file
That there was little difficulty in preparing the first BAS in the new file indicated that the process had been successful.