In this issue:

Articles

MYOB LiveAccounts™ is live!

MYOB LiveAccounts™ is now available, and we are delighted to add it to Australasia’s bestselling suite of accounting solutions for businesses

Who is it suitable for?

MYOB LiveAccounts™ is designed for sole traders and very small businesses. It’s really easy to use, and automates data entry by bringing bank and credit card transactions directly into the system. It’s a great option for micro businesses, start-ups and businesses that are still using manual methods to do their accounts.

Great value!

For just $25 per month including GST, we’ve jammed lots of value into MYOB LiveAccounts™.
Your clients will get unlimited:

• Usage – LiveAccounts™ is accessible anytime from any internet connection

• Invoices – clients can create as many invoices as they need

• Users – clients can share their accounts with you and others in real time - online

• Updates – we keep the system up-to-date for you and your clients

• Data backup – your clients’ data is safe, secure, and always backed up.

And if your clients link their bank account to LiveAccounts™, they’ll get up to 100 transactions securely transferred each month as part of their subscription.

Check out the website

We’ll be providing you with more detailed information shortly. In the meantime, visit the LiveAccounts™ website at liveaccounts.myob.com.au.

MYOB LiveAccounts™ – providing you with a more effective and time-efficient way of working with smaller business clients.

Help your clients win a $20k MYOB business grant

MYOB has helped over 1,000,000 business owners focus on what they love. If you have clients that love their work, we’ve got great news...

MYOB is offering a Love Your Work Business Grant of $20,000, plus additional prizes of MYOB AccountRight software, training and more. It’s part of our ongoing commitment to making business life easier.

Business owners will be eligible to WIN by answering two easy questions:

1. What are you passionate about?
2. How would you spend $20,000 on developing your business?

You and your clients can enter at myob.com.au/loveyourwork – that’s right, MYOB Partners are eligible too, and we‘d love you to be part of it! You can even post a business name and photo, which could be good promotion for your business even if you don’t win. Hurry, entries close 5 September 2010!

How can I let my clients know about the Grant?

Spread the word to your clients by using the “Send to a friend” option on the website, or posting details on Facebook or Twitter.

We hope you and your clients will be involved – Love Your Work!

Do you provide Tax Advice?

If you provide a tax agent service including giving tax advice as part of your job, there are new laws that could affect your business.

Changes to the law, now require entities providing a tax agent service for a fee or other reward to register with the Tax Practitioners Board. Transitional arrangements to register are only available until 31 August, so don’t delay. For information regarding the new law and how to apply, go to www.tpb.gov.au

Managing your clients’ MYOB AccountRight Company Data Files

Upgrading a clients’ AccountRight Company Data File to the latest version is often a quick fix, however there are some pitfalls...

When working with clients’ AccountRight Company Data Files, many Partners upgrade the file to the latest version (v19). This allows you to review the file and make any required adjustments. However, there are a number of pitfalls to watch out for when doing this:

If an AccountRight Company Data File is upgraded to the latest version, there is only a 30 day period until Activation \ Confirmation is required. Please do not activate the Company File using your serial number.

If an AccountRight Company Data File is upgraded to the latest version, it cannot be downgraded to prior versions. This will mean that the file cannot be sent back to the client.

To avoid these issues, we encourage you to open the AccountRight Company Data File with the same version that the client is using. To make this process simpler, the Company File Manager is included on the Partner CD and can be loaded onto a your desktop.

The MYOB Company File Manager saves you from having to remember which Company File is associated with which AccountRight, or accounting software product and version. By simply double-clicking a Company File, or by selecting a Company File from within MYOB Company File Manager, the following information is displayed in your Company File Manager window:

• File name

• MYOB version

• Company name

• Serial number

• ABN/TFN

• Current financial year

• Whether audit trail tracking is enabled

• Lock period date

• Last bank reconciliation date

• Number of transactions in the company file

• Whether file activation is required

• Whether file confirmation is required.

From this window you can then open the selected Company File in its associated software version.

Do only Twits Twitter?

Industry expert David Smith, of FMRC Smithink, discusses the use of Social Media in business today:
Social networking is all the rage (at least it seems for anyone under 25).  To compress one’s thought down to 140 characters (as required on www.twitter.com)  probably says it all yet more and more people are tweeting (is that a word?) all the time.

Is this just about the younger generation communicating in increasingly abbreviated ways? If I stay on Twitter for 30 minutes or so and I start to lose faith in the future of mankind, thinking ‘is this is how people spend their time?’  Maybe I’m just getting too old!

But perhaps these social networking sites have some real use.
Firstly, someone may be talking about you.  Perhaps it’s something nice; perhaps it’s something not so nice. In any event it would be good to know. So perhaps you should open a twitter account and set up some saved searches targeting your name or your practice name. This provides the opportunity to respond to the issues being raised.
Maybe you could do this for your key clients and let them know if they’re being mentioned, or target specific phrases such as “tax advice” or “financial assistance” and respond to the issues raised - which would highlight your knowledge and skills.

You could target key prospects who may be tweeting and contribute to the issues they are discussing. You could post your own thoughts about business management, interesting articles you’ve seen to highlight your knowledge and skills.

Will you get business from it – who knows? One thing is for sure; don’t make a life out of it. If you’re searching for new team members – perhaps posting a note on Twitter may position you differently to other firms.

Further exploration of Social Media

After you’ve spent your weekend exploring Twitter, you could explore setting up your firm’s page on Facebook (www.facebook.com) or the business equivalent www.LinkedIn.com. Once again these can be the ultimate time waster . Here you set up your profile, tell the world about yourself and maybe someone will be interested. I must say I do question the return for effort hence my limited effort to set up LinkedIn or Facebook entries. The most useful feature of these social networking sites is that they allow you to stay connected with business associates and friends and reconnect with old business associates and friends which may enrich one’s personal life as well as perhaps provide business benefits.

Imagine if you were able to connect to all your old school friends. I suspect if you did, some of them would be in business and would be interested in what you’re doing and could become valuable referral sources or event clients.  This is the sort of thing that Facebook and LinkedIn enable.
Some firms also are using Facebook to check out potential team members. Beware what you post if you’re looking for a job!

And of course there’s YouTube.com where you could post videos showing how brilliant you are in solving Division7A issues. At least it may be a cure for insomnia.  The best videos are those that get a message out but are entertaining as well. Not easy to do and of course you have to find the time when you’re not on Facebook or Twittering.

There is also a social etiquette that you need to be mindful of.  Some people can be quite aggressive in marketing themselves or their businesses using social networking. Some may take some liberty with the truth in some things they may post. Users of social networking respond poorly to such activities with the result that it could rebound upon you with negative postings being made. Being genuine is the best thing you can do.

Is this worth all the time and effort? I must admit I’m not convinced but it is such a new medium, who knows what new uses people will make of it.  The fact that I’m am only a very occasional Tweeter and have only basic profiles on Facebook and LinkedIn probably says it all – but of course my weekends are spent ferrying the teenagers from one place to another so they can have more Facebook time !
I am interested in how you are embracing Social Media.

Have you won business or found a new team member on social networking? Has it helped you in your business? What has been your experience? Drop me an email (david.smith@fmrcsmithink.com), send me a Tweet (smithink), find me on LinkedIn or even write on a piece of paper and post it to P O Box 729, Milsons Point, NSW 1565 -what a novel idea!  I’ll publish what people are doing.

MYOB is an exhibitor at Australia’s only dedicated technology event for accounting practitioners - FMRC Smithink’s Accountants Technology Showcase to be held at Royal Pines, Gold Coast on 21-22 October, 2010. Visit www.fmrcsmithink.com to register. You can also register for FMRC Smithink’s free newsletter at www.fmrcsmithink.com

Common Small Business GST Mistakes

The GST have now been operating for 10 years, yet despite a massive education campaign by the Australian Taxation Office (ATO) over the years, there are still common errors and omissions that are being made by many small businesses on their BAS returns. Most of these errors relate to the over-claiming of GST credits.

This articles examines in point form below some of the more common GST mistakes that are made by small and micro businesses and where appropriate identifies the correct GST treatment so that these errors are minimised in the future. The method of correcting some of these mistakes is also identified.

Not using the correct accounting method. If the business is using the cash accounting method for GST, but not for income tax purposes, and the turnover of the business is expected to be $2 million or more, the business needs to change to the accruals or invoice basis.

Incorrectly claiming GST credits on bank fees (e.g. monthly and annual fees, cheque book fees and loan establishment fees). Bank fees are treated as 'Input Taxed' meaning that the Bank does not charge GST to the customer. Note that GST is charged on credit card merchants fees and therefore a GST credit can be claimed on these.

Incorrectly claiming GST credits on government charges like land tax, council rates, water rates, ASIC filing fees and motor vehicle registration where no GST has been charged.

Incorrectly claiming a GST credit on the 'total cost' of a business insurance policy. As there is a stamp duty component in the premium which is not subject to GST, a GST credit cannot be claimed on this portion of the payment. The actual amount of GST payable on an insurance premium is usually stated on the renewal form.

GST is not paid on the sale of cars and equipment, including the trade of motor vehicles. The sale of a business asset is subject to GST just like any ordinary business transaction unless the going concern exemption applies.

Not remitting GST on some government grants and incentives which are received inclusive of GST.

Incorrectly claiming GST credits on GST-free purchases such as basic food items, exports and some health services.

Incorrectly claiming GST credits on wages and superannuation payments. 

Incorrectly claiming the full amount of GST credits on entertainment expenses where the business has elected for fringe benefits tax purposes to use the 50/50 split method, in which case only 50% of the input tax credits can be claimed.

Claiming the entire GST credits on a car purchased for more than the luxury car limit ($57,466 GST inclusive for the 2010/11 year). The maximum GST credit that can be claimed is limited to $5,224 (1/11 of $57,466).  

Not remitting GST on the taxable value of fringe benefits provided where an employee contribution is made. 

Sole traders and partnerships are not apportioning input tax credits and making adjustments to expenditure that is partly private and partly business use (e.g. motor vehicle expenses). To calculate their GST liability small businesses are required to undertake this apportionment each time they prepare their BAS though in practice the actual private use may not be accurately determined until the business is required to complete and lodge its annual income tax return. Sole traders and partnerships with an annual turnover of up to $2 million that pay GST either quarterly or monthly can apply private use apportionment for GST purposes on an annual basis instead of each time the BAS is lodged. 

Incorrectly claiming an upfront GST credit on assets financed by way of commercial hire purchase (CHP). While an up-front GST credit is available for businesses accounting for GST using the accruals or invoice basis, this is not available where the business uses the cash basis. When the cash basis applies the GST credit to be claimed is calculated as 1/11th of the 'principal' portion of the total CHP payments made during the relevant month or quarter, (i.e. the credit is claimed progressively over the term of the CHP loan). In order to claim the total GST credit upfront, businesses operating on a cash basis would need to consider financing the asset by way of a chattel mortgage.

Incorrectly claiming GST credits on payments for yellow pages advertising. Where the business chooses to pay for the cost of advertising by instalments the entire GST is charged up-front. Businesses that accounts for GST on an accruals or invoice basis can claim this amount in their next BAS whereas businesses that use the cash basis can only claim a GST credit equivalent to 1/11th of each instalment.

Claiming a GST credit when the business does not have a valid tax invoice at the time of lodging the BAS. Businesses in this situation should contact the ATO for further advice. 

Correcting GST Mistakes
Where a business has made a clerical error on an earlier period BAS or omitted a particular transaction there are both 'time' and 'dollar’ thresholds for determining the particular BAS in which the error or omission needs to be corrected. A business can make the change in the 'current' BAS where all of the following conditions are satisfied:

The turnover of the business is less than $20 million;

The 'net' effect of the errors and omissions from the earlier period BAS 's is less than $5,000 in GST credits; and

The original transactions occurred within 18 months of the end of the current BAS period.

Where the 'net' effect of the errors or omissions from previous BAS's occurs outside the relevant time and dollar limits the business must revise each of the original BAS's that the errors or omissions occurred in. This may lead to the imposition of a general interest charge where the revision results in additional GST payable.

This article is provided by practising Chartered Accountant Joe Kaleb of the leading small business portal www.australianbiz.com.au. The website is a useful resource for accountants and provides an extensive library of tax, superannuation, management and structuring articles, templates (including employment contract and consultancy agreements), a range of tax and finance calculators including monthly KPI’s, property CGT, and a linked profit & loss and cash flow budget that records GST, plus other tools. The site also offers specialist services for accountants including website creation, tax webinars, premium listing on a widely accessed accountants directory, and professional indemnity & office insurance quotes.

AccountRight Tech Tips – Cash Position

With the introduction of the new Business Insights dashboards in the AccountRight V19 range, we will have a look at the different elements and how it could help you review the health of your business. This edition of the PP-PA News looks at Cash position as at today

The total amount of available cash.  Please note for multicurrency transactions all totals in this dashboard are displayed in the local (converted) currency.
Click Analyse performance in the lower left corner of the panel to view the following graphs:

• Income and Expenses

• Cumulative Income, Expenses and P/L

• Top ten selling items by total sales volume

• Top ten customers by total sales value

These graphs can be saved as a JPG image by right-clicking on the graph and selecting Save.
You can use the information shown in these graphs to: Identify excessive spending compare income against expenses and view the resulting profit or loss over the current financial year. They represent your actual Profit and Loss and the business's performance.

Identify your top ten items:

The Y axis in this graph represents the total sales for the item in dollar terms.
How much did we sell the item for? This value is not calculated from the total quantities of the assets sold. It was designed this way so smaller, more common items don't overpopulate the list.

The X axis in the graph truncates the item number at 3 characters.
Move and hover the cursor over the item number to see the item number in full.

Identify your top ten Customers

The X axis in this graph represents the total sales for customers in dollar terms.
This value is not calculated from the total number of actual sales entered for the client.

The Y axis in the graph truncates the customer's name at 25 characters.
Move and hover the cursor over the customer's name to view the name in full.

Events

Profit From Compliance – Free Seminars

Attend MYOB’s Profit from Compliance seminar and discover how you can free up your time and focus on providing valuable advice to your clients.
Join Mark Holton from Dynamic Taxation and Training Services as he shares valuable profit building tips, and demonstrates how you can provide more consulting and planning services for your clients. Mark will be showing some simple processes and tools that any practice can use to help build a strong advisory revenue stream.
 
The Profit from Compliance seminars are free to attend and will be running in October and November around Australia and online.
Invitations will be sent later this month. For more information now call us on 1300 555 666 or email accountants@myob.com.au.

Australian Accountants Technology Conference 2010

21-22 September | Royal Pines, Gold Coast

MYOB is excited to be part of the ATSA (Accounting Technology Showcase Australia) 2010!
ATSA is Australia's only dedicated IT event for accounting practitioners. If you're looking to optimise your time and ensure your firm is getting the most that it can out of its technologies, ATSA is the event you can't miss!

During the 2 day seminar, you will have access to over 50 sessions in 3 streams to enable you to focus on the issues that are relevant to you. You can choose which sessions to attend to ensure you get exactly what you want.

The conference also includes a dinner on Thursday evening, where you can hear cricket legend Kerry O’Keefe speak. It also provides a great opportunity to chat with the experts and network with your peers.

Rob Cameron Guest speaker
Hear Rob Cameron, MYOB Product Strategy Manager, speak on using technology to transform the accounts process and give a demonstration on MYOB Workpapers.

Discount for MYOB Clients
A 15% discount off the full conference fee (not including the optional dinner cost) is being offered to all MYOB Clients and can be claimed by entering the promotional code SPON10 in the online booking form.

To find out more and to register, visit the ATSA website.

MYOB Global Business Camp

Do you want to help your clients, and yourselves, spend more time working on the business rather than in the business?  Are you looking for ways to increase the value you offer your clients, whilst growing your Accounting Practice? 

Then the MYOB Global Business Camp might be just the thing for you.

Run by Global Business Camps and sponsored by MYOB, the MYOB Global Business Camp is an intensive 3 day business program, specifically designed to help business owners grow their business and create more rewarding lifestyles.

ULTIMATE BUSINESS DEVELOPMENT

The camp provides you with the ultimate tool to grow your business.  The team at Global Business Camps report that past accountants who have attended with their clients have enjoyed unprecedented growth in their individual practices.

If you’re looking to improve your client relationships and grow them into bigger and better clients, this is the business development program you won’t want to miss.

PROGRESSIVE AND PROACTIVE

Accountants who strive to build a reputation of being progressive and proactive find the Camp an effective tool to do just that.  The business camp offers a unique opportunity to spend valuable, uninterrupted time with your clients in a workshop environment, facilitated by industry leaders.

WHO SHOULD YOU BRING ALONG?

The business camp is for anyone in business, no matter how small or large looking to:

• Run a better business – improving their operations to make them more efficient.

• Grow and increase revenue.

• Transition from one owner to another.

• Ensure successful succession.

• Work less in the business and delegate to key people.

• Looking to improve their business value.

• Have more fun in their business.

HOW DOES IT WORK?

The three day program focuses on:

• The 6 Secrets™ of any successful business. This simple yet powerful concept gives you a structured starting point to start the journey of improving the performance of any business.

• The 5 Key Business Building Strategies™ - will highlight how little changes can have profound effects on any business.

• The 5 Dysfunctions of a Team and how by tackling them you can multiply your businesses service levels and in turn your profits.

• The Value Gap Test™ and what to do about it.

• The 5 Steps to Successful Succession™

• And so much more (A full outline of the program is available at www.globalbusinesscamps.com.au).

Both you and your clients will also have the opportunity to meet and do business with other business people just like you. You’ll be able to combine the shared experience of the group with your own resources to work on the specific issues your businesses are faced with.

Testimonials from fellow accounting practitioners are available here http://www.globalbusinesscamps.com.au/whattheysay.htm 

A few success stories from previous camps run by Global Business Camps:

• A food outlet has increased turnover from $17,000 per week to $35,000 per week over 4 years. Profit has gone from $150,000 per year to $385,000 per year.

• An electrician in a regional town has seen revenue increase from $450,000 per year to $1,100,000 over 3 ½ years.

• A dental prostheses business has increased revenue by $280,000 over 5 years whilst now working 15 hours less a week. Profits are now $180,000 when initially they were just earning a wage.

• A health provider has improved service levels and won a major contract. Over the last 3 years revenue has increased from $3.8M to $18M per year.

• A legal firm with 2 partners has increased profits from $150,000 per year with the partners working 80 hours per week to $550,000 per year and the 2 partners now working 40 hours per week.

• A restaurant in a regional town has increased revenue from $4,000 to $20,000 per week within 2 years.

MYOB Global Business Camp
When: Monday 15 to Wednesday 17 November 2010
Where: Medallion Club, Etihad Stadium, 740 Bourke Street, Docklands, Melbourne, Victoria

Investment:    Your clients - Normally $2640 (incl. GST) per Delegate, MYOB has secured a special price for MYOB clients - $2310 (incl. GST).  This includes all morning teas, lunches and afternoon teas.  And also includes a cocktail networking event on the Monday (5pm – 7pm) and a Charity Auction Gala Dinner on the Tuesday (7pm – 11.30pm).

Investment:  Accountants - Accountants can attend for $990 (incl. GST) per Accountant.   However, it gets better.  If you do bring clients with you, we will refund you $330 (incl. GST) per client.   If you bring 3 clients – you will be attending for FREE!  Even better, if you bring more than 3 clients you can bring more Accountants or we will pay you money back!   For example, if you have 1 Accountant attending and 4 clients attending – we will be paying you $330 (incl. GST). 

Guarantee - The team at Global Business Camps fully guarantee your investment and if at the end of the event you or your client/s have received no value from attending, the team at Global Business Camps will refund your investment.
 
Registration
To claim the special MYOB price, simply complete your Registration Form online at www.globalbusinesscamps.com.au/myobaccountant

If you have any questions about the MYOB Global Business Camp you are welcome to contact the team at Global Business Camps, info@globalbusinesscamps.com.au or 1300 883 089.