The Future is Now ! : Online
Accounting
For businesses with a significant volume of transactions, it makes sense to
consider using an applications service provider to host the accounting operation
so that there is only one current data file. This enables access by authorised
persons including the external Accountant and Tax Agent.
You may visit easeaccounting.com.au
for explanation of this type of service.
Please contact our office to discuss this cost effective way of
efficiently maintaining your accounting records subject to consideration of
security issues including periodic backups (via CD or email) off-line for
archival.
Classification of
Transactions :
In order
to use MYOB software to emulate the Business Activity Statement correctly :
Each and every transaction
must be coded with an Account code also; from 1 July 2000; a GST code
(regardless of the date of supply or acquisition).
Account Codes :
On
the Schedule below are a list of common account labels.
The classifications are a rough guide, geared towards
clients with MYOB Accounting Plus, but should be helpful for clients with First
Accounts. (If you have First Accounts You will not have all the codes) Other
programs will probably have similar GST coding options.
GST Codes :
Default GST Codes have
been provided but this does not substitute for professional advice ! You should check with this Firm if
in doubt as to the correct GST or income tax treatment.
Pro-rate GST Credits where Part Private
Usage
Where expenses are required to be apportioned
for income tax purposes (eg telephone or mobile) generally only the same
proportion of business usage may be claimed for GST input credits.
If using MYOB you will
need to establish control accounts for GST collected and Paid if you have not
already done so. You may visit MYOB for support
At
: www.myob.com.au/support/notes/gst
Seek
advice and ensure your software is GST compliant!
Please do not assume deductibility
or availability of GST credits without advice
and where appropriate, ensure substantiation or documentation. GST credits must
not be claimed in a BAS unless Tax Invoices are held at the appropriate time. The labels are a start to understanding your
accounting system and its role in data capture for income tax and GST compliance. Sub-accounts may
be appropriate for most information systems.
Responsibility will not be accepted for
using these codes without appropriate professional advice as in some instances input
credits will not be available - eg due to the rules on input taxed supplies, not being
registered for GST or not having appropriate tax invoices to support input tax credits or
where 48.5 % withholding is required due to the supplier not having an ABN.
The
Most Common GST Tax Codes : NOTE: If the (PAYER) Entity is
Not registered
for GST
do NOT use this Table.
GST = Taxable
Supplies
GNR = GST Not
registered code. Ie An ABN held but no GST collected.
GN2 or NOA = Voluntary
withholdings 48.5 % - if no ABN held
by a payee.
GCA = Taxable
Capital Expenditure
NT = Not
Taxed
INP = Input Taxed
supply
ITS = Input Taxed Sales - eg Residential rents or interest
income
Free - Free of GST
NTD =
Non-tax deductible - no
QUE = not
sure of GST - raise query with ITax Solutions -by email?
|
CODE LABEL |
GST Code |
NOTES -
Description/ Explanation |
| INCOME |
|
|
| Income |
GST if
registered generally |
- but
could be ITS (eg Residential rent or interest income) |
| Interest
Income |
ITS |
Care
re INP expenses |
| Fringe
benefit reimbursements |
GST ! |
Employee reimbursements re say car fringe benefits by 31 March A GST liability arises
even if journalised. |
| EXPENSES
: |
|
|
| Advertising |
GST |
newspaper adverts,
brochures & other media |
| Accountancy |
GST |
professional fees
for accounting |
| Bank Charges |
N-T |
Transaction fees but care as some bank service fees (eg
merchant fees) include GST -check your
statements |
| Bank -Merchant fees |
GST |
credit card merchant
fees |
|
Bookkeeping
|
GST |
fees
for bookkeeper if external |
|
|
|
| Courier |
GST |
monies paid for
document exchange & couriers |
| Commissions |
GST,
GNR or QUE Care to ensure a TAx Invoice has been received ! |
commissions for work
related expenses |
|
Computer
expenses |
GST |
Seek advice
here ! Is an asset account label appropriate ?
This item may cover :
- Computer consumables -floppies, CDs labels -or label as stationery
- Software updates -but only if minor low cost seek advice here -40 %
depreciation may apply - if so code as computer software fixed
(depreciable) asset
|
| Depreciation |
N-T |
Normally handled by Accountant - do not code any
payments here -see Asset coding |
| Electricity |
GST |
electricity used for
business |
|
|
|
| Entertainment
- Client
- Staff |
Care here as
food may be FRE
Restaurants
GST |
NB May not be
deductible unless FBT applies
No
portion allowable re staff functions but not light lunches on premises
-see staff amenities- This area is complicated. Seek professional advice ! |
| Filing Fees |
FRE |
Lodgement fee for
Government for Company documents eg. business names and Annual Return. |
| Fines
(non-deductible) |
NTD |
fines relating to
late payment for group tax or parking fines. |
|
Fringe Benefits Tax
paid to Deputy Commissioner of Taxation
|
NT |
relating employee
fringe benefits - use for quarterly instalments & final payment |
|
Insurance
|
FRE |
- disability
- sickness &
accident |
|
Insurance
|
GST |
- public liability
- workers compensation |
| Interest
expense |
INP |
either interest paid
on overdraft per bank statements Car re interest income is a separate code see below |
| Lease expenses |
GST or
QUE care - do you have a Tax Invoice or are payments N-T ? |
leasing expenses for
equipment-
- may be
subject to GST but check documentation |
|
Motor Vehicle Expenses |
GST except
registration |
- petrol
-
insurance "green slip" now
creditable
- registration
GST
free For help see :
www.myob.com.au/support/notes/gst
- maintenance and repairs- lease expenses - may be subject to GST but
check documents
|
| Postage |
GST |
all monies paid for stamps,
postage |
| Printing & Stationery |
GST |
all monies paid for printing and
stationery, business cards etc. |
| Repairs & Maintenance |
GST |
repair of faulty equipment, eg.
fixing switch on fax machine, mending broken chair, not purchasing new item
of equipment. |
| Rent - office |
GST if Landlord registered for
GST - care here ! code may be INP or NT if Landlord not registered for GST or 48.5 %
withholding if no ABN ! |
all monies paid for leasing
premises, rates & outgoing |
| Staff Amenities |
FRE |
Milk, coffee, sugar,
-GST FREE. |
| Staff Amenities |
GST or FRE depending upon tax
invoice |
GST Items
include:
- Light lunches on premises
(no alcohol)
- Toiletries (soap, tissues
etc)
Note Tax invoices not required if less than $ 55 GST
included
Care
Re Difference between Entertainment and Staff Amenities ! Call for
advice. |
| Seminars |
GST |
- registration |
| |
GST |
- out of pocket expenses |
|
Subscriptions |
GST |
- Trade Associations
- Professional, Business or Trade Journals
- Loose-leaf technical |
| Superannuation contributions |
N-T |
-Compulsory and optional
employer contributions. |
| Sub-contractors |
GST if subcontractor registered
for GST - Care here ! Code may be "GNR" if subee" has ABN but not registered for
GST or 48.5 % withholding if subcontractor has no ABN ! |
Gross up for any
withholding. |
|
Telephone |
GST -but watch
apportionment of Input tax credits for part busines items if sole trader enterprise. |
- mobile
- office
- home
- internet
-pager |
| |
|
|
| Travel |
GST |
- Local, taxis & fares |
| |
GST |
- Interstate conferences |
| |
FRE Care here |
- Overseas travel |
| |
GST |
- Accommodation |
| Uniforms |
GST |
Care here as
special rules apply for deductions for uniforms. Protective clothing is treated
differently. Concessions may apply to laundry. |
| Wages |
N-T |
- employee wages - gross
inclusive of PAYE tax. |
| Assets |
|
|
| Equipment
Computer Software licences |
GCA |
New items of equipment or
furniture purchased for office -see Notes on Depreciation
See
above re computer expenses. |
