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Accrual accounting and cash accounting

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Contributing User Mashak
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Accrual accounting and cash accounting

I have AccountRight Basics 2011.1 AU. This program is accrual accounting based and I would like to change it to cash accounting. I was wondering if it was possible to do this? I have tried finding this on my MYOB program with no success. I am self-employed tutoring students. I do not earn enough to be registered for GST hence I do not need to submit BAS.

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Ultimate Partner JeffreyTodd
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Re: Accrual accounting and cash accounting

Hi @Mashak

 

As you have stated MYOB is by default an accruals accounting based system as most are.

 

there is no on-off switch in MYOB to move to a cash system, rather you either;

 

1. Input data on a cash basis, thereby ensuring you have a cash based system or,

2. Input data on an accruals basis, and use the cash reporting reports, which will report on a cash basis.

 

Cheers

 

Jeffrey Todd B Bus, CA, CPA, TIA, MAICD
Chartered Accountant
CPA
Registered Tax Agent
MYOB Certified Consultant
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Contributing User Mashak
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Mashak
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Re: Accrual accounting and cash accounting

Thanks so much! I will try that. All I require is an EOY profit and loss statement and an EOY balance sheet based on cash accounting.

Ultimate Partner JeffreyTodd
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Re: Accrual accounting and cash accounting

Hi @Mashak

 

Both of those reports are available under reports| Accounts

 

Regards

Jeffrey Todd B Bus, CA, CPA, TIA, MAICD
Chartered Accountant
CPA
Registered Tax Agent
MYOB Certified Consultant
Xero Certified Consultant
Kounta POS Specialist
Quickbooks Partner
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SME Business Tax Specialist
Ultimate Partner DuncanS
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Re: Accrual accounting and cash accounting

@Mashak @JeffreyTodd

 

Mashak,

 

I gather you are a Sole Trader not a Company.

 

Jeffrey has suggested you put entries into MYOB once it has been paid - I like the idea.

Some clients keep Tax Invoices to Clients in a Lever Arch file with the unpaid ones at the front.

There would be no Receivables or Payables on the Balance Sheet.

 

I could not locate where you can do a Cash Balance Sheet in MYOB.

 

Many Tax Agents will get an Accrual P&L add back Receivables start of period ex GST and deduct Receivables end of period ex GST to get a Cash P&L - as we know MYOB has a Cash P&L.

I sometimes do a non - cash P&L then have a line for movement in Receivables ex GST..

I think it is important to be transparent as to how a Tax Return has been prepared.

.

Whether you put your Client Invoices in MYOB on invoice date or payment date, you will need to develop a procedure where you follow up unpaid Tax Invoices. In my business, I do a Bank Reconciliation every Saturday morning then print a Receivables Report.

 

Hope this helps.

 

Duncan

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
MYOB Moderator Steven_M
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Re: Accrual accounting and cash accounting

Hi @Mashak

 

Its great to see @JeffreyTodd and @DuncanS offer assistance in regards to your enquiry

You mentioned the fact that you want to run a Profit and Loss and Balance Sheet report on a Cash basis. AccountRight will allow the user to run a Profit and Loss report on a Cash basis via Reports>>Accounts>>Small Business Entity>>Profit and Loss [Cash]. A Balance Sheet on a Cash basis is not possible with the AccountRight range.

You also mentioned that you are using AccountRight 2011 currently MYOB is offering a free upgrade to clients on AccountRight 2011 - 2013.4 a free upgrade to AccountRight 2013.5. This is due to the fact that those earlier AccountRight 201x versions did contain some known issues that have been corrected in the AccountRight 2013.5 program. I have sent you a private message on the MYOB Community Forum in regards to offering that upgrade to yourself.

Kind regards,
Steven

MYOB Community Support

Online Help| Forum Search| my.MYOB| Download Page

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Contributing User Mashak
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Mashak
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Re: Accrual accounting and cash accounting

 
Contributing User Mashak
10 Posts
Contributing User
Australia
Mashak
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10Posts

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Re: Accrual accounting and cash accounting

 
Contributing User Mashak
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Mashak
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Re: Accrual accounting and cash accounting

Hi Steven,

Sorry its taken me so long to reply - I've been quite busy with the beginning of term starting up (I teach music lessons privately).

Yes, thank you, I've found the P & L report on a cash basis. Previously I did not know to look under Small Business Entity, but there it was. I tried to view this for the last financial year, 2016, but it said there was an error - I presume this was because I have closed off the 2016 financial year?? I could however view the 2017 financial year to date. (I'll not worry about the Balance Sheet.)

Regarding the free upgrade, I'm happy with the AccountRight version I have at the moment. I don't have the time to devote to the change, so I'll leave it as it is - unless you think this version will be outdated soon and won't work? Someone from MYOB did ring me sometime last year about upgrading. I said I don't use the online facility as I don't record any of my banking on MYOB. I just use it for creating invoices, and recording income and expenses - I can then print up my P & L report for my accountant at tax time. After I explained this he didn't seem to think I needed the upgrade.

Thank you for all your help, Mashak

Contributing User Mashak
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Mashak
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Re: Accrual accounting and cash accounting

Hi Jeffrey,

Thank you for your reply. I have now found how to get the cash P & L report on MYOB - I did not know to look under Small Business Identity.

I have been told that I am unable to get a cash Balance Sheet report on MYOB - or at least in the version I have. I am not too worried about this as I was mainly interested in the P & L.

I use MYOB to create my invoices and then print them out to give to customers, so just recording the cash received is not an option for me.

Thank you again for your help.

Mashak

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