Provisioning in Balance Sheet

Question

I am wanting to create a few accounts to keep track of liabilities other than Payroll ones (Payroll Tax, Insurance etc).

Essentially these are little "buckets" of money that I want to see in the Current Liabilities of my Balance Sheet.

I understand this is done by creating provision accounts in the balance sheet. However, I am not sure how to actually do it in MYOB Account Right.

I gather I will have to enter new values each month into these provision accounts to increase/decrease their amounts.

Can anyone advise or point me in the righ direction?

Thanks

duncans · Answer

Allied_P&nbsp;&nbsp;A Tradeoff exists between accounting entries/reporting and time/effort.&nbsp;The Tax Law allows a Small Business Entity to claim some expenses with a timeframe less than 12 months at the time of payment eg insurance.&nbsp; Confirm your circumstances with your Tax Accountant.&nbsp;By Example, a Business Owners might pay $6000 of Insurance (12 months in advance) in January 2024.The Business Owner if looking at a monthly/quarterly P&amp;L may wish to allocate at $500 per month.&nbsp;Thus the tradeoff between proper accounting, time and effort and tax law.&nbsp;Duncan

allied_p · Answer

Sorry I have no idea what you are talking about as regards trade off and tax law.

All I want to do is set aside in MYOB categories for things that I know I will have to pay out within the financial year. Insurance is a good example where I put aside $x a month so that when I have to pay the final insurance premium I have the funds available.

I want to include this under the Other Current Liabilities.

doreen_p · Answer

Hi, Allied_P
&nbsp;
Thanks for your post.
&nbsp;
You're on the right track! Creating provision accounts in MYOB AccountRight is a great way to track liabilities other than payroll. To create a provision account, go to Lists &gt; Accounts &gt; click New. For more information about this, kindly check out the Help Article: Adding, editing and deleting accounts.
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Please let us know if you require further assistance with this.
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If my response has answered your inquiry, please click "Accept as Solution" to help other users find this information.
&nbsp;
Best regards,
Doreen

duncans · Answer

Allied_P&nbsp;Doreen_P&nbsp;&nbsp;I will give another example,&nbsp;&nbsp;&nbsp; Lets say you want to pay a $3000 insurance premium equally over 10 months.&nbsp;&nbsp; You could do a Journal Dr Insurance Cr Prepaid Insurance for $3000&nbsp; Allocate to Prepaid Insurance when the payment of $300 is made.&nbsp;Once again, there can Tax and GST implications (also Accounting cost implications) of your method.I do believe it is best to do Accounting in MYOB on a Payments basis for Insurances.&nbsp;Internet Banking has improved over the years.I understand the Banks provide a listing of upcoming Direct Debit payments.&nbsp; Monthly Statements also list the Direct Debit Payments during the month.&nbsp;Duncan&nbsp;&nbsp;&nbsp;&nbsp;

doreen_p · Answer

Hi, DuncanS
&nbsp;
It is great to have this example from a Partner's perspective. We're glad to have you here.
&nbsp;
Best regards,
Doreen

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