31-05-2011 09:35 PM
I'm hoping this is a simple question I'm using AccountRight Plus v19.5. My accountant has looked at my file as a pre-tax planning session and suggested a few changes I make to how I've recorded things. She mentioned that my ASIC payment needs to be recorded under "Filing Fees". I assumed this to be an account name, but I don't see one. Should it be, and if so, what account number is generally used?
If that's not what she meant, how should I record it?
31-05-2011 09:56 PM
She wants you to create a separate expense account called Filing Fees, the coding will be no Tax.
01-06-2011 12:26 AM
Hey there Kerrie
Just to avoid possible confusion the code for this particular expense type and transactions is FRE (meaning that it is a GST free item, but it is reportable for BAS purposes)
Not to be confused with N-T which are non GST items and non reportable on the BAS and most of the time non claimable like fines or Transfers from one account to another.
Hope this is helpful
01-06-2011 06:44 AM
I agree with Kamara regarding the tax code FRE for ASIC fees and I usually have an expense account for Filing Fees
01-06-2011 11:01 AM
The ASIC fee is not a legal fee, and I would assume having put it there you have most probably coded it GST.
There is no GST on the filing fee, and while MYOB does not make any allowance in their tax codes for things that have no tax, most people use the GST free code, (which is really incorrect, as there are specific items that are classified GST Free and this is not one of them). So unless you make a new tax code NT (no tax) as I do, you will need to use Myob's code of GST Free.
You will find that all accountants want an expense account started called Filing Fees for books that involve a Company.
01-06-2011 11:44 AM - edited 01-06-2011 11:57 AM
What about the late fees for not paying ASIC on time, still the Filing Fee?
Again my previous bookkeeper allocated all ASIC payments to Legal fees, is it a good idea to create a new expense called Filing Fees and changed all the ASIC transactions to the new account according to you experience?
And also could you please specify the other expenses should be allocated to Filing fee account.
01-06-2011 11:55 AM
I would suggest you change the filing fee to the new expense account you create.
There should only be one filing fee per year, unless the Company has fallen behind in payments. The only expense to go to this account will be the filing fee, usually $212.
If the previous bookkeeper had GST included in the expense, then the best way to do an entry is via general journal, box ticked for GST inclusive, dated 1st day of current BAS period, Cr Legal fees coded GST Dr Filing Fees coded (Free or No tax). The other option is to go and change the entry and sort it out when a GST reconciliation is done at year end.
01-06-2011 12:03 PM
Luckily she did not have GST included in the expense. So can i just change the account instead of doing an entry?
What about the late fees for not paying ASIC on time, do they go to Filing Fee Account as well?
01-06-2011 12:17 PM
Yes Monica, put the late fees there at the moment and the Accountant can work out whether they are tax deductable or not at the end of the year.
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