Tips and techniques for: > MYOB's business management software range > MYOB RetailManager > MYOB AssetManager Pro > MYOB PowerPay

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1 Tips and techniques for: > MYOB's business management software range > MYOB RetailManager > MYOB AssetManager Pro > MYOB PowerPay

2 MYOB Australia Pty Ltd ABN Wesley Court Burwood East VIC 3151 Australia Copyright MYOB Technology Pty Ltd All rights reserved Registered to MYOB Technology Pty Ltd ABN

3 Contents Welcome 5 End of financial year MYOB's business management software 6 Step 1 Back up your company file 9 Step 2 Reconcile your bank accounts 12 Step 3 Reconcile your accounts receivable 16 Step 4 Reconcile your accounts payable 19 Step 5 Reconcile your inventory 22 Step 6 Reconcile your GST control accounts 26 Step 7 Review your accounts and reports 31 Step 8 Provide information to your accountant 33 Step 9 Enter any end of year adjustments 37 Step 10 Start a new financial year 38 MYOB RetailManager 42 Step 1 Perform the stocktake 43 Step 2 Print the What s in Stock report 47 Step 3 Print the Aged Debtors, Lay-by and Sales Order reports 48 Step 4 Back up the shopfront 48 Step 5 Perform the Accounting Export 49 MYOB AssetManager Pro 50 Step 1 Print the depreciation and asset reports 51 Step 2 Start a new year 53 End of Financial Year Step-by-Step Guide

4 Contents End of payroll year MYOB's business management software 56 Step 1 Process the last paycheques for the year 58 Step 2 Print payroll reports 59 Step 3 Reconcile PAYG Tax 60 Step 4 Ensure any workers under labour hire arrangements have been identified 61 Step 5 Print PAYG Payment Summaries 62 Step 6 Make a backup 72 Step 7 Start a new payroll year 72 MYOB PowerPay 74 Step 1 Finalise the last pay run for the year 75 Step 2 Enter any pay adjustments 76 Step 3 Print the Payment Summaries 77 Step 4 Send the EMPDUPE file to the ATO 78 Step 5 Start a new payroll year 79 4

5 Welcome Looking forward to this end of financial year? There's so much to do organise your financial information for the accountant, prepare your BAS, print and lodge PAYG Payment Summaries it can all get overwhelming! That's why we've prepared this step-by-step guide. With comprehensive, easy-to-follow instructions on closing the financial and payroll years in your MYOB software, you have all the information you need to start the new year smoothly. Throughout the guide you'll also learn how various MYOB M-Powered Services can streamline many of your business processes. You'll soon discover that there's more to MYOB than just software. Need more information? If you require additional information, see your MYOB software's User Guide, access your software's online help files or search the internetbased Support Notes available at We're sure you'll immediately benefit from the following information, and we look forward to helping you mind your own business in many more ways in the very near future. MYOB Australia End of Financial Year Step-by-Step Guide

6 End of financial year MYOB's business management software range Complete this section if you are using: MYOB BusinessBasics MYOB Accounting v13 or higher MYOB Accounting Plus v13 or higher MYOB Premier v7 or higher MYOB Premier Enterprise MYOB FirstEdge MYOB AccountEdge v3 or higher Although the requirements for your business at the end of the financial year might seem daunting, you can take advantage of a number of MYOB accounting software features to easily prepare your business for the new year. Important: Before you begin, ensure that all of your purchases, sales, cheques and payroll entries have been entered to 30 June You are then ready to move forward. 6

7 TIP You can enter transactions for the 2004/2005 financial year even if you haven't finalised the 2003/2004 year. When you are ready to start a new financial year, any transactions you have entered for the new year will not be affected. However, you will need to run the Start a New Financial Year assistant before you can enter budgets for the new year. Checklist 1. Back up your company file 2. Reconcile your bank accounts 3. Reconcile your accounts receivable 4. Reconcile your accounts payable 5. Reconcile your inventory 6. Reconcile your GST control accounts 7. Review your accounts and reports 8. Provide information to your accountant 9. Enter any end of year adjustments 10. Start a new financial year End of Financial Year Step-by-Step Guide

8 End of financial year MYOB's business management software range Did you know... You can get up to speed fast with MYOB Training. MYOB runs courses that help you to use your MYOB software in a classroom-based environment. Courses are run in a number of locations around Australia and there are many short-courses to choose from, including: Getting started with MYOB accounting software Advanced features in MYOB accounting software Certificate in MYOB Bookkeeping Building reports using MYOB accounting software and Microsoft Excel Business reporting and reconciliation using MYOB accounting software Managing the GST using MYOB accounting software Managing your inventory with MYOB accounting software Managing your payroll using MYOB accounting software Find out more about MYOB Training at You can get onsite assistance with these end-of-year procedures. Hundreds of MYOB Certified Consultants can help you onsite with these end of year procedures or any other question you may have about your software. Search for a Certified Consultant near you at 8

9 Step 1 - Back up your company file Your MYOB company file stores all the information you have entered during the financial year. We recommend that you back up this information before you continue. This will ensure you have a version of your company file that you can go back to if necessary. To begin, make two backups of your company file after entering all transactions up to 30 June Don't perform any end of year adjustments or enter any transactions for the new year before backing up your company file. We recommend that you name and label your backups carefully and always note the last cheque or invoice number (this will help you identify those tricky June-July transactions later). For example, name the backup file "Company_Name_04A" and label the disk "Company Name, 30/6/04, Chq 100 Inv 10001, Backup_A". Important: Keep one backup on hand in your business premises and the other in a secure location away from your business. RECORD YOUR BACKUP FILE NAMES AND LOCATIONS HERE: End of Financial Year Step-by-Step Guide

10 End of financial year MYOB's business management software range To back up your company file 1. Go to the File menu and choose Backup. The Company File Backup window appears. 2. Select the Backup all data and Check Company File for errors options. 3. Click Continue and the verification will begin. When the data verification process is complete, a message will appear, describing the results of the test. If the process was successful click OK. (If the process discovered errors in your company file refer to the following Tip.) 4. Click OK. The Save In window appears. Using the Save In field drop down arrow, select where you want to save your backup file. 5. Click Save. 10

11 TIP The verification feature checks your company file for errors. Data verification can catch minor inconsistencies in your company file before they cause serious problems. If an error is detected during the data verification process, we recommend you run the Optimisation Assistant. The Optimisation Assistant can make your company file more efficient and is capable of fixing certain types of data errors. To run the Optimisation Assistant Go to the File menu and choose Optimise Company File. Once you have optimised the file, perform the data verification procedure again to determine if the data errors have been repaired. If errors continue to be detected and the message refers to a particular transaction, open the transaction, review it or delete and re-enter it. If you receive a message referring to a record, such as an inventory item or tax code, open the record to investigate its setup. If the verification process does not specify transactions or records, you should restore the most recent backup of your company file and use that file instead. (You should also check that company file for errors.) Note: If you are using MYOB Premier or MYOB AccountEdge in a network environment, ensure all other users have logged out before running the Optimisation Assistant. Also run the Optimisation Assistant from the server. End of Financial Year Step-by-Step Guide

12 End of financial year MYOB's business management software range Step 2 - Reconcile your bank accounts When you receive your bank statements for the period ending 30 June, you should reconcile your bank and credit card accounts. This will ensure that your records match your bank s records as at 30 June. You can either work from your paper-based statements to complete this process, or download the bank statement from your bank's online banking website (supported file types include OFX, QFX, QIF and OFC). Both procedures are described below. To manually reconcile a bank account 1. Go to the Banking command centre and click Reconcile Accounts. The Reconcile Accounts window appears. 12

13 2. Select the account you want to reconcile. 3. Enter the closing balance of the bank account you're reconciling in the New Statement Balance field. 4. Enter 30/6/2004 as the closing date of the reconciliation period in the Bank Statement Date field. TIP If your bank or credit card statement's closing date is after 30 June, simply rule a line after the last June transaction, calculate the closing balance on the statement as of the last June transaction, and reconcile with a statement date of 30 June 2004 in your MYOB software. 5. Mark the transactions that appear on your bank statement by clicking in the left column. TIP If interest or service fees are on your bank statement, but do not appear in the Reconcile Accounts window, click Bank Entry and enter those transactions. They will automatically be marked as "Cleared". 6. If the Out of Balance amount is: zero, you have successfully reconciled the bank account. Click Reconcile and choose to print the Reconciliation report. After printing the report, click Reconcile again and then click the Reconcile option. a non-zero amount, refer to Support Note 440 Bank Reconciliation Out Of Balance, which can be found at If you need help reconciling a bank account, click the Help button in the lower-left corner of the Reconcile Accounts window and view the To Reconcile an Account topic. End of Financial Year Step-by-Step Guide

14 End of financial year MYOB's business management software range To reconcile a bank account using a downloaded bank statement 1. Go to the Banking command centre and click Reconcile Accounts. The Reconcile Accounts window appears. 2. Select the account you want to reconcile. 3. Enter the closing balance of the bank account you're reconciling in the New Statement Balance field. 4. Enter 30/6/2004 as the closing date of the reconciliation period in the Bank Statement Date field. 5. Click Get Statement and use the Open dialog box to locate and open the statement file you downloaded from the Internet. 6. The Get Statement Log appears. This alert tells you the number of transactions in the statement file, the number of transactions read by your MYOB software, and if any transactions have been skipped. Click OK. 7. The Unmatched Transactions window appears. If no transactions appear in the list, click Done. If a transaction appears in the list, manually match the transaction or record a new transaction click Help in this window for step-by-step instructions. When all of the transactions have been matched, click Done to return to the Reconcile Accounts window. 8. If the Out of Balance amount is: zero, you have successfully reconciled the bank account. Click Reconcile and choose to print the Reconciliation report. After printing the report, click Reconcile again and then click the Reconcile option. a non-zero amount, refer to Support Note 440 Bank Reconciliation Out Of Balance, which can be found at 14

15 Did you know... Reconciling your bank statements can be even easier if you're using MYOB M-Powered bank statements. MYOB M-Powered bank statements is an easy, efficient and secure service that lets you receive daily updates of your bank account balances and transaction information. You can then use your MYOB software to import the data for automatic reconciliation with your general ledger or use it to produce a variety of reports. This service is currently available for Commonwealth Bank of Australia customers to apply, read the Product Disclosure Statement, or to register your interest in having this service work with another preferred bank, visit or call M-Powered bank statements is available for the following MYOB products: MYOB Accounting v14 MYOB Accounting Plus v14 MYOB Premier v8 MYOB Premier Enterprise v2 End of Financial Year Step-by-Step Guide

16 End of financial year MYOB's business management software range Step 3 - Reconcile your accounts receivable If you have entered lots of sales, customer payments and adjustments during the year, it's a good idea to check that your linked account for tracking receivables (usually named Trade Debtors in the Accounts List) matches the outstanding sales allocated to your customer cards. An imbalance can occur if a customer payment has been entered in the Receive Money window instead of the Receive Payments window. There are a few other possibilities, and this procedure will help you find any incorrectly entered transactions. To reconcile your accounts receivable 1. Go to the Reports menu and choose Index to Reports. 2. Click the Sales tab and highlight the Receivables Reconciliation Summary report. 3. Click Customise and set the Receivables As Of date field to 30 June Click Display. 5. If the Out of Balance amount is: zero, the accounts receivable reconcile. Print and store the report in a secure location. a non-zero amount, please refer to Support Note 530 Receivables Reconciliation, which can be found at 16

17 Did you know... Get paid faster with MYOB M-Powered invoices. Does the Receivables Reconciliation report show that you have slow-paying customers? If your customers are paying late, your cashflow could be affected, and that's not good for your business. One way to get your customers to pay faster is to make it more convenient for them to pay you. That's just what MYOB M-Powered invoices lets you do it gives your customers the ability to pay you through Australia's most popular payment channels, including BPAY, Credit Card by Phone and Postbillpay in person. Once a customer has paid, the payment is available as cleared funds in your business bank account on the next business day. Which all adds up to faster payments, simpler payment processing and less paperwork. To apply, find out more, or to read the M-Powered Services Product Disclosure Statement, visit or call M-Powered invoices is available for the following MYOB products: MYOB JustInvoices MYOB BusinessBasics MYOB Accounting v12 or higher MYOB Accounting Plus v12 or higher MYOB Premier v6 or higher MYOB Premier Enterprise MYOB FirstEdge MYOB AccountEdge MYOB Accountants Office BPAY is a registered trademark of BPAY Pty Ltd. End of Financial Year Step-by-Step Guide

18 End of financial year MYOB's business management software range To reconcile foreign currency receivables This procedure is applicable if you are using MYOB Premier or MYOB AccountEdge and have the multi-currency feature turned on. 1. Go to the Reports menu and choose Index to Reports. 2. Click the Sales tab and highlight the Receivables Reconciliation Summary report. 3. Click Customise and set the Receivables As Of date field to 30 June Select the currency to reconcile and ensure that the Display In field (located in the Finishing tab) is set to Originating Currency. (If you are using MYOB Premier v7.5 or earlier, or MYOB AccountEdge v3 or earlier, click Advanced to access these fields.) 5. Click Display. 6. If the Out of Balance amount is: zero, the accounts receivable reconcile. Print and store the report in a secure location. a non-zero amount, please refer to Support Note 530 Receivables Reconciliation which can be found at 7. Repeat this procedure for your other currencies. Did you know... You CAN beat bad debts. At MYOB Australia we recognise that many small businesses do not have easy access to the accounts recovery expertise that is available to large organisations. We also recognise that accounts recovery is a specialised area, which is why we've teamed up with Dun & Bradstreet to develop the MYOB Accounts Recovery Service powered by Dun & Bradstreet. 18

19 The service includes a variety of tools and resources, including: Legally binding terms and conditions, which can be downloaded free of charge by MYOB customers on a support plan, and used on your invoices. These terms and conditions include the Dun & Bradstreet logo as well as terms for late payment (including interest and default charges), and provisions for account recovery. Access to a web-based account recovery service that puts Dun & Bradstreet's expertise to work for you and gives you real-time access to the progress of each account recovery action you have in place. For full details of the MYOB Accounts Recovery Service powered by Dun & Bradstreet, visit Step 4 - Reconcile your accounts payable This section is not applicable for MYOB BusinessBasics or MYOB FirstEdge users. If you are using your MYOB software to track your accounts payable, you should regularly check that your linked account for tracking payables (usually named Trade Creditors in the Accounts List) matches the outstanding purchases allocated to your supplier cards. An imbalance can occur if a supplier payment has been entered in the Spend Money window instead of the Bill Payments window. There are a few other possibilities, and this procedure will help you find any incorrectly entered transactions. End of Financial Year Step-by-Step Guide

20 End of financial year MYOB's business management software range To reconcile your accounts payable 1. Go to the Reports menu and choose Index to Reports. 2. Click the Purchases tab and highlight the Payables Reconciliation Summary report. 3. Click Customise and set the Payables As Of date field to 30 June Click Display. 5. If the Out of Balance amount is: zero, the accounts payable reconcile. Print and store the report in a secure location. a non-zero amount, please refer to Support Note 665 Payables Reconciliation which can be found at Did you know... At last you can streamline your supplier payments and eliminate double handling. How much time do you spend writing and posting cheques and faxing or posting remittance advices? With MYOB M-Powered payments, you can pay your suppliers and send them detailed remittance advices in one easy process. And you can even pay your staff too. As well as paying on the day, you can choose to send payments to be processed on a nominated future date making it easy to pay all your bills on time as well as take advantage of any early settlement discounts your suppliers may offer. 20

21 This service is currently available for Commonwealth Bank of Australia customers. To apply, read the Product Disclosure Statement, or to register your interest in having this service work with another preferred bank, visit M-Powered payments is available for the following MYOB products: MYOB Accounting v14 MYOB Accounting Plus v14 MYOB Premier v8 MYOB Premier Enterprise v2 To reconcile foreign currency payables This procedure is applicable if you are using MYOB Premier or MYOB AccountEdge and have the multi-currency feature turned on. 1. Go to the Reports menu and choose Index to Reports. 2. Click the Purchases tab and highlight the Payables Reconciliation Summary report. 3. Click Customise and set the Payables As Of date field to 30 June Select the currency to reconcile and ensure that the Display In field (located in the Finishing tab) is set to Originating Currency. (If you are using MYOB Premier v7.5 or earlier, or MYOB AccountEdge v3 or earlier, click Advanced to access these fields.) 5. Click Display. End of Financial Year Step-by-Step Guide

22 End of financial year MYOB's business management software range 6. If the Out of Balance amount is: zero, the accounts payable reconcile. Print and store the report in a secure location. a non-zero amount, please refer to Support Note 665 Payables Reconciliation which can be found at 7. Repeat this procedure for your other currencies. Step 5 - Reconcile your inventory This section is not applicable for MYOB BusinessBasics or MYOB FirstEdge users. As you know, each "inventoried" item in your Items List is linked to an asset account in your Accounts List. The total inventory value of your items, as shown in the inventory reports, should always match the inventory asset account values. However if the inventory asset account has incorrectly been used in a transaction, an imbalance may occur. The following procedure will help you check for any incorrectly entered transactions. TIP Before reconciling your inventory, ensure that you have performed a physical stocktake of your inventory and that your MYOB accounting software's "on hand" figures match the actual quantities on hand. Use the Count Inventory function accessible from the Inventory command centre to print the Inventory Count Sheet report and to input your stocktake results. 22

23 To reconcile your inventory 1. Go to the Reports menu and choose Index to Reports. 2. Click the Inventory tab and highlight the Inventory Value Reconciliation report. 3. Click Customise and enter the date as 30 June Click Display. The Current Value column lists the value of all of the inventory items as of 30 June 2004 according to the Items List. This totals to the Inventory Value at the bottom of the report. Directly below this is the Account Balance field, which is the balance of the inventory general ledger asset account as at the filtered date. 5. If the Out of Balance amount is: zero, your inventory balances. Print and store the report in a secure location. a non-zero amount, you will need to find the transactions that are causing the out of balance. See the following procedure and example. End of Financial Year Step-by-Step Guide

24 End of financial year MYOB's business management software range To locate the transactions that are causing the imbalance 1. Filter the Inventory Value Reconciliation report back in time at intervals (for example of one week) to try and find the last time that the inventory was in balance. 2. When this point in time is found, start filtering the report forward in time at shorter intervals, for example one day, to find exactly when the out of balance occurred. 3. Use the Find Transactions window (accessible from the Command Centre) to review the transactions that were allocated to the inventory asset account on that day. The usual causes of an imbalance are: Allocating journal entries to the inventory asset account: Any adjustments to inventory should be performed using the Sales, Purchases or Adjust Inventory windows. Incorrectly using the inventory asset account as the allocation account in a Sale, Purchase, Spend Money, Receive Money or Adjust Inventory transaction: The only time this account should be used as the allocation account is when creating inventory adjustments for opening inventory balances, which is only performed using the Adjust Inventory window. 4. Once you have found the incorrect entries, either edit, delete or reverse them. Once the errors have been fixed, your inventory should be balanced. Note: If the erroneous transactions are dated in a previous year and you have closed that financial year, the transactions cannot be deleted or edited. You will need to enter a reversing entry that is dated in the current financial year. 24

25 Example: Locating transactions that cause imbalances The Inventory Value Reconciliation report is run on 30 June 2004 and the Out of Balance amount is $ Step 1 Pinpoint the date that the imbalance first occurred. Filter the Inventory Value Reconciliation report for a prior date to find when it first went out of balance. The report is found to go out of balance on 1 January Step 2 Locate the transaction(s) that caused the imbalance. Perform an account inquiry, using the Find Transactions window, on the inventory asset account for 1 January A purchase transaction dated 1 January 2004 is found. Note the allocation account is , which is the inventory asset account. A servicetype purchase has accidentally been allocated to the inventory asset account and has caused the imbalance. Step 3 Edit the incorrect transaction. To fix this incorrect purchase, click the zoom arrow to open the purchase and change the allocation to the correct account (in this example it should be an expense-type account). When the Inventory Reconciliation report is redisplayed as at 30 June 2004, there is no longer an out of balance figure. End of Financial Year Step-by-Step Guide

26 End of financial year MYOB's business management software range Step 6 - Reconcile your GST control accounts When you select a tax code in a transaction, the relevant tax amount is automatically allocated to the code's linked account, or control account for example, GST Collected and GST Paid. If these linked accounts have been used incorrectly, the GST reports and your control accounts will not balance. There are a number of other reasons why your control accounts may not balance. Use the Tax Information Reconciliation report to check your GST Collected and GST Paid liability accounts. This report reviews the activity of your tax codes and their linked accounts. Note: The following procedure is only applicable if you pay and collect GST on the accrual basis. If you are accounting for GST on a cash basis, the GST control accounts (which are accounted for on an accrual basis) and the figures at G9 and G20 on your BAS (which are accounted for on a cash basis) will not match because of timing differences. To reconcile your GST control accounts 1. Go to the Reports menu and choose Index to Reports. 2. Click the GST/Sales Tax tab and highlight the Tax Information Reconciliation Summary report. 3. Click Customise. 26

27 4. Select June if you remit your BAS monthly or April to June if you remit quarterly. 5. Click Display. 6. If the "Out of Balance" amount for an account is: zero, the control account reconciles. Print and store the report in a secure location. a non-zero amount, see the following tips. End of Financial Year Step-by-Step Guide

28 End of financial year MYOB's business management software range What can cause an account to be out of balance in this report? Transactions that have been allocated directly to a tax code s linked account: With the exception of recording your payment to, or refund of, GST to the ATO (the GST remittance transaction), you should not allocate transactions directly to the GST Collected or GST Paid accounts, as they will not appear in the GST reports or in BASlink. The opening balance of the tax code s linked account is incorrect: When you set up your company file, you would have entered your account opening balances. Specifying an incorrect opening balance for a tax code's linked account (for example, GST Collected or GST Paid) will ultimately affect the account's Actual Account Balance in the Tax Information Reconciliation report. Review your account opening balances by going to the Setup menu, choosing Balances and then choosing Account Opening Balances. Scroll down until you find your tax codes' linked accounts and enter the correct opening balances. If your company file has been in use for some time, and you suspect that the tax codes' linked account opening balances have been altered, restore a backup of your company file that you know has the correct opening balances. Note the opening balances in the restored company file and then correct them in your current working company file. 28

29 A tax code has had its linked account changed part-way through the reporting period: The Tax Information Reconciliation report is categorised by the tax codes' linked accounts. Therefore, the linked accounts are used as report sub-headings, under which the associated tax code(s) activity is listed. Where a tax code s linked account has been changed, and that change is within the report s period, the tax code s entire activity for that period is reported against the account it is currently linked to. As only a portion of the tax code s activity was actually posted to it s current linked account, an out of balance for the account will be reported. To determine if a tax code's linked account has been changed: 1. Restore a backup of your company file from the last BAS reporting period. 2. In the restored company file, select the Tax Code List report in the Index to Reports window, and click Customise. 3. Go to the Report Fields tab and choose to include the Tax Collected and Tax Paid report fields. (If you are using a pre-2004 MYOB software release, you will need to click the Design button to add these fields.) 4. Display and print this Tax Code List report and then compare it with the same report produced from your current working company file. Comparing these two reports will help you identify any tax codes that have had their linked accounts changed. For further information about the Tax Information Reconciliation report, simply visit and search for Support Note 1773 Using the Tax Information Reconciliation Report. End of Financial Year Step-by-Step Guide

30 End of financial year MYOB's business management software range Did you know... There is an easier way to save for your tax bills. How much of the money that s in your business bank account today needs to be set aside to pay future liabilities such as GST, employee PAYG and superannuation? With MYOB M-Powered MoneyController, created in partnership with Macquarie Bank, you can estimate the amount required to be set aside to meet these obligations and have the option of transferring these funds into a designated high-interest account, straight from your MYOB software. To apply, find out more, or to read the M-Powered Services Product Disclosure Statement, visit or call M-Powered MoneyController is available for the following MYOB products: MYOB Accounting v14 MYOB Accounting Plus v14 MYOB Premier v8 MYOB Premier Enterprise v2 30

31 Step 7 - Review your accounts and reports You should review the key reports to identify potential issues. Review the Accounts List, Trial Balance, Balance Sheet and Profit and Loss reports as a minimum and look for figures that seem out of the ordinary or unexpected. To investigate amounts on the report, you can simply click the on-screen amounts, and use the Find Transactions window or the Edit Accounts window that appear to see what makes up the values shown in the report. Did you know... You can get faster access to your favourite reports. If you're using a 2004 release of MYOB Accounting, MYOB Accounting Plus, MYOB Premier or MYOB AccountEdge, you can add the reports you frequently access to the Reports menu. To add your favourite reports to the Reports menu 1. Go to the Reports menu and choose Index to Reports. 2. Highlight the report you want to display and click Customise. 3. Click the Finishing tab and mark the Include in Reports Menu checkbox. 4. Click Display to display the report and to add the report to the Reports menu. End of Financial Year Step-by-Step Guide

32 End of financial year MYOB's business management software range You can print your financial reports in a batch. Not applicable for MYOB BusinessBasics or MYOB FirstEdge users. To save you time printing reports, you can print reports in batches. For example, you may want to print all your regular monthly financial reports at once with a few clicks of the mouse you can start the printing process and then continue working on more important tasks. To create a report batch 1. Go to the Reports menu and choose Report Batches. 2. Click New and enter an appropriate name for the batch, for example Month End Reports. 3. Choose the reports that you would like to include in the report batch by clicking the name of each report. A mark will appear next to each selected report, indicating that it is included in the new batch. To remove a report from the batch, click the report name a second time. 4. Click OK. The Report Batches window appears with the name of the report batch in the list. 32

33 To print a report batch 1. Go to the Reports menu and choose Report Batches. 2. Select the relevant period from the Period drop list. You can choose any of the months or quarters in the current financial year, or you can choose to print information for the entire year to date. TIP Your Period selection affects reports in different ways. For example, if you choose January, any "Activity" reports will show activity information from 1 January to 31 January while the Balance Sheet report will show information as at 31 January. 3. Highlight the report batch to print and click Print. Step 8 - Provide information to your accountant There are a number of ways you can provide your financial year information to your accountant. Talk to your accountant to discuss their preferred method. Make a backup of your company file and send it to your accountant Many accountants use MYOB software in their practice and are happy to accept your company file for review, and then provide you with the required changes to import into your company file. End of Financial Year Step-by-Step Guide

34 End of financial year MYOB's business management software range MYOB company files are also cross-platform compatible, so even if you're using a Mac and your accountant has a Windows-based computer, they will be able to open your company file (assuming you are also using compatible MYOB software versions). Please note that only your company file is cross-platform and not the backup file, therefore you will need to either copy your company file to CD or Zip disk if applicable. Export information for your accountant Your accountant may prefer you to just send the information they need in a special text file. Speak to your accountant to determine which accounting practice system they are using. If your accountant uses MYOB Accountants Office in their practice: Thousands of accounting practices are using MYOB Accountants Office in their practice. If your accountant uses this system, you can quickly export and send just the information they need to review your accounts. Simply go to the Accounts command centre and click Send to MYOB Accountants Office. You can easily send an containing the necessary information or provide the accountant with a special export file. If your accountant does not use MYOB Accountants Office in their practice: You can export your financial information to Ceedata, HandiLedger and Solution 6 MAS file formats, by going to the File menu and choosing AccountantLink. 34

35 Provide reports to your accountant Some accountants simply require you to print out the key financial reports for the year. Use the following list as a guide to reports that you may be required to send. Profit and Loss Statement for the financial year. Bank Reconciliation report as at 30/06/04. Balance Sheet and Trial Balance as at 30/06/04. General Ledger (Detail) report. Note: This can be a lengthy report, so you may prefer ing it to your accountant see the "Did you know" Tip on the next page for more information. Receivables Reconciliation (Summary) report (if you use MYOB accounting software for invoicing) as at 30/06/04. Payables Reconciliation (Summary) report (if you use MYOB accounting software for purchasing) as at 30/06/04. Inventory Value Reconciliation Report (if you use MYOB accounting software to track inventory) as at 30/06/04. GST Summary reports for the June month or quarter. TIP Once you have provided your accountant with the information they need, lock the last financial year so that no entries are made or changed for the old year. To lock the last financial year 1. Go to the Setup menu and choose Preferences. 2. Click the Security tab and set the Lock periods up to and including field to June You will need to unlock the company file to enter any adjustments your accountant gives you. End of Financial Year Step-by-Step Guide

36 End of financial year MYOB's business management software range Did you know... You can reports to your accountant. You can individual reports straight from your MYOB software. If you want to send multiple reports at the same time, save them as PDF files to your hard drive and then attach them to an using your software. To a single report 1. Go to the Reports menu and choose Index to Reports. 2. Select the report you want to and click Customise to filter the report. 3. Click Send To and choose The window appears. Select the recipient's card, or enter their address. 5. Complete the Subject and add a message. 6. Click Send. The report will automatically be saved as a PDF, attached to an and sent to the Outbox of your software, ready to send. To save reports as PDFs 1. Go to the Reports menu and choose Index to Reports. 2. Select the report you want to save and click Customise to filter the report. 3. Click Send To and choose PDF to save the file to disk. 4. The Save As window appears. Select the folder into which you want to save the report and name the report. 5. Click Save. 36

37 Step 9 - Enter any end of year adjustments In finalising your accounts for the financial year, your accountant is likely to want to make a number of adjustments. If these are provided to you electronically, you can import these direct into your MYOB software; otherwise you may have to enter them manually. To import adjustments 1. Go to the File menu, choose Import and then choose General Journal Entries. 2. Select the appropriate import file format. Your accountant should provide you with details of the file s format. 3. Click Continue and then locate and open the import file. 4. Use the Import Data window to match the import file fields with your software's fields. 5. Click Import to complete the process. If you need assistance with the Import Data window, simply click Help in the bottom-left corner of the window. To manually enter adjustments 1. Go to the Accounts command centre and click Record Journal Entry. 2. Enter the adjustments as directed by your accountant. End of Financial Year Step-by-Step Guide

38 End of financial year MYOB's business management software range Important: After entering these adjustments, make two backups of your company file. They should both be saved to removable media, such as floppy disk or CD. Refer to page 9 for instructions on backing up. RECORD YOUR BACKUP FILE NAMES AND LOCATIONS HERE: Step 10 - Start a new financial year Once the above tasks have been completed you are ready to run the Start a New Financial Year assistant. When you start a new financial year, your MYOB software performs the following: The previous financial year s monthly totals for all accounts are changed to last year figures if last year amounts already existed, those amounts will be replaced. All closed sales and closed purchases are purged. The balance of your Current Year Earnings account (Equity-type account) is transferred to your Retained Earnings account (Equitytype account). The balances of your income, cost of sales, expenses, other income and other expense accounts are returned to zero. Any transactions that are dated in the new financial year will not be affected. 38

39 To start a new financial year 1. Go to the File menu, choose Start a New Year and then choose Start a New Financial Year. The Start a New Financial Year window appears. 2. Ensure you have backed up before you proceed as this will be the only source from which you will be able to retrieve detailed figures and information for the previous year. If you haven t backed up your company file, click Backup. (If you are using pre-2004 MYOB software releases, click Cancel and then follow Step 1 on page 9 to back up your company file.) 3. Click Continue. You will be presented with a list of all the changes that will occur during the Start a New Financial Year process. Read this carefully and then click Continue. 4. Specify the new financial year and the last month of the new financial year. In most cases you can accept the default details showing in this window. If you are closing the financial year ended 30 June 2004, you would select 2005 as the new financial year (as it covers the 2004/2005 years), and June as the last month of the financial year. 5. Click Continue. Choose the number of periods to use in the new financial year (this feature is not available in MYOB BusinessBasics or MYOB FirstEdge). If you're not sure whether you need twelve or thirteen periods, choose thirteen. End of Financial Year Step-by-Step Guide

40 End of financial year MYOB's business management software range About the thirteenth period: If you choose to use thirteen accounting periods, your financial year will still only include twelve calendar months. The thirteenth period simply allows you to enter adjustments without them affecting your reports for that date. For example, say your accountant gives you depreciation journal entries for the financial year, and you date them as 30 June If you print a Profit and Loss statement for June, the entire year's depreciation expense would be applied to that month. A better way is to enter the depreciation journal entries into the thirteenth period. You do this by simply adding an asterisk (*) before the date *30 June The depreciation expense will appear in your annual profit and loss statements, but not in the June report. For more information about using the thirteenth period, search for "thirteenth period" in your software's help system. 6. Click Continue. Indicate whether you want to exclude certain transactions from being erased. If you track undeposited funds, mark the Do Not Erase Receipts Grouped with Undeposited Funds checkbox. If you make electronic payments, mark the Do Not Erase Disbursements Grouped with Electronic Payments checkbox. If you use the MYOB M-Powered superannuation service, mark the Do Not Erase Unpaid Superannuation Accruals checkbox. For more information about this service, see the "Did you know" Tip on the next page. 7. Click Continue. Indicate which accounts you reconcile. Any transactions that haven't been reconciled in these accounts will not be erased. 8. Click Continue. If you have backed up your company file, and are satisfied with the selections you've made in the Start a New Financial Year windows, click Start a New Financial Year. 40

41 The process may take some time if you have a large number of transactions or records in your company file. Once this process is complete, you're done! Did you know... You can easily handle all your staff's superannuation requirements with M-Powered superannuation. If you're already using MYOB Accounting Plus or MYOB Premier to run your payroll and calculate staff super, then the MYOB M-Powered superannuation service will save you even more time and paperwork. M-Powered superannuation simply accesses the payroll information you've entered into your MYOB software, and then lets you authorise electronic payment of your staff's various superannuation funds. Whether you pay your employees' super on a weekly, fortnightly, monthly or quarterly basis, the M-Powered superannuation service: gives you total control of your superannuation payments transmits and processes payments securely automatically sends a remittance to each superannuation fund with details of the contributions you have made, and provides reports that keep you and your employees up-to-date. To apply, find out more, or to read the M-Powered Services Product Disclosure Statement, visit or call M-Powered superannuation is available for the following MYOB products: MYOB Accounting Plus v13.5 or higher MYOB Premier v7.5 or higher MYOB Premier Enterprise End of Financial Year Step-by-Step Guide

42 End of financial year MYOB RetailManager Take advantage of MYOB RetailManager s stocktaking and reporting features to help prepare your business for the new financial year. This guide gives a quick overview of the main tasks that need to be completed at the end of the financial year. For complete information and instructions, please see your MYOB RetailManager User Guide. Checklist 1. Perform the stocktake 2. Print the What s in Stock report 3. Print the Aged Debtors, Lay-by and Sales Order reports 4. Back up the shopfront 5. Perform the Accounting Export 42

43 Step 1 Perform the stocktake At the end of the financial year you will need to perform an accurate stocktake, and with MYOB RetailManager, the process of counting and recording stock levels is easy. Following is a list of tips that will help you perform a stocktake (for complete instructions on performing a stocktake using MYOB RetailManager, see the Stocktaking chapter of your MYOB RetailManager User Guide). Choosing the best time to perform a stocktake You can start your stocktake at any time, but we recommend that you perform the stocktake while the store is closed, as it can be difficult to account for sales made while performing the stocktake. End of Financial Year Step-by-Step Guide

44 End of financial year MYOB RetailManager Clearing pre-existing stocktake figures When performing a new stocktake, click Clear All in the Stocktake window. This prevents the previous stocktake s information from being added to the new figures. Printing a report to help you perform a stocktake Click the Stock Sheets button in the Stocktake window to print a list of the items that require counting. You can use this report if you want to perform the stocktake offline and then transfer the results to MYOB RetailManager. 44

45 Performing a partial stocktake You can choose to perform a partial stocktake for particular categories or subcategories, or if you only want to change a few items, you can perform a single-item stocktake. See the Stocktaking chapter of your MYOB RetailManager User Guide for more information about these options. Completing a stocktake in multiple sessions If you cannot complete the stocktake of all items in one session, you can close the Stocktake window and even close MYOB RetailManager and return to it at a later time. Any figures you have entered will be saved. Note that if you were performing a partial stocktake, the Partial Stocktake, Primary Categories and Subcategories checkboxes will all be cleared when you return to the Stocktake window. Simply mark the relevant checkboxes to continue the stocktake. Accounting for items sold after being counted If you have counted items and then made additional sales of those items, you will need to adjust the item quantities in the Stocktake window, by entering negative quantities. For example, if you counted 10 Pencil Sharpeners, but sold two after counting them, you would enter the Pencil Sharpener barcode into the Stocktake window again with a count of 2. The final count for Pencil Sharpeners would then be eight. Counting lay-by and sales order stock When performing a stocktake, ensure that you count any lay-by and sales order stock that you may have. MYOB RetailManager will assume that you have accounted for the lay-by and sales order stock in your stocktake figures. For example, if you have five microwaves on lay-by and 10 on the shelf, you would enter 15 microwaves into the stocktake. End of Financial Year Step-by-Step Guide

46 End of financial year MYOB RetailManager If a barcode cannot be found If a message appears stating that the barcode cannot be found, check that the item actually belongs to one of the categories that you have chosen to stocktake. Either clear the Partial Stocktake checkbox and rescan the barcode to see if it appears, or go to the Information menu and choose Stock to double-check which category, subcategory or custom fields the item has been assigned to. Before committing the stocktake Ensure that you have counted each and every item. Uncounted items are set to zero when you commit the stocktake meaning that every item you did not count will have a zero inventory level. If you do not use MYOB RetailManager s Accounting Export feature (as shown on page 49), you will also need to print the Display Shortages report before committing the stocktake. This report compares the previous MYOB RetailManager stock levels with the new count that you have entered in the Stocktake window. You will need this report to prepare journal entries for your accounting software. To prepare journal entries for your accounting software 1. In the Stocktake window, click the Display Shortages button (in the bottom right-hand corner). 2. Click the Print button in the toolbar. If the report has many pages, you can choose to print the last page only. Click the Pages radio button and enter the last page number of the report into both the From and To fields. 3. Click Print. 46

47 4. Using the Value column s total, as shown below, create a General Journal entry in your accounting software that credits your Inventory (Stock) account and debits your Stock Expense (Spoilage, Shrinkage etc) account. If the Value column s total is a negative amount, debit the Inventory account and credit the Stock Expense account. Step 2 Print the What s in Stock report Once you have committed the stocktake, you should print a report of your new stock levels. To do this, go to the Tools menu, choose Reporting and then choose Stock. Print the What s in Stock report, or for more detailed information, print the What s in Stock Detailed report. Note: Steps 2 and 3 should be performed on the same day, as these reports cannot be backdated. End of Financial Year Step-by-Step Guide