Vehicles purchased under novated lease

Under a novated lease arrangement, you take over all or part of the lessee's rights and obligations under the lease. This transfer of rights and obligations is agreed to in a deed of novation between you, the finance company and the lessee. The lessee is usually the employee, or an associate of the employee. Hello, I am lifting this post about Novated Leases directly from the ATO's website based on this article and instead of using convoluted … [Read more...]

How to record an Operating Lease Transaction in MYOB

Definition of 'Operating Lease' A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Read more An Operating lease transaction is the easiest transaction to record in MYOB. It is simply a spend money transaction that is allocated to a General Ledger account called lease expense. The transaction has an input tax credit for GST Paid which is claimable from the ATO. Click the image … [Read more...]

GST Finance Strategy

The GST Finance Strategy adopted on purchase of commercial equipment will ensure profitability is maintained but not at the expense of cash flow. The most important consideration when purchasing commercial equipment is to be conversant with the different type of finance products provided by banks/finance companies and the impact these will have not only on the bottom line of the business but the GST implications and their impacts on Cash Flow … [Read more...]

End of Year Depreciation

Depreciation refers to two very different but related concepts: the decrease in value of assets (fair value depreciation), and the allocation of the cost of assets to periods in which the assets are used (depreciation with the matching principle). The former affects values of businesses and entities. The latter affects net income. Generally the cost is allocated, as depreciation expense, among the periods in which the asset is expected … [Read more...]

Commercial Hire Purchase (CHP) Cash Basis

A Commercial Hire Purchase (CHP) is a commercial finance product where the customer hires the vehicle from the financier for a fixed monthly repayment over a set period of time. OK, so we have defined the finance type but how do we account for it in MYOB. first of all you have to know what type of accounting method you are using to report your BAS to the ATO. The GST Accounting Method shown here is Cash. Seven Steps to record a Commercial … [Read more...]

Finding Purchses by Payment Method

I enter my purchases to 5- and assign each purchases with a job number. When I come to paying the bill I pay via my trading account (1-) or a director loan / credit card (2-) and put "Cash" or "Card" as my cheque number. Just wondering if there is anyway I can list out the purchases base on the account that's paid from? In another word I need to find how much I have payed with my credit card on behalf of the company for each job. Run the bank … [Read more...]

Paying a bill using Finance Funding

The following question was asked via MYOB Communities: How do i use finance funding to pay for my business insurance? Hi, Our Insurance broker invoiced us for our Annual Workers Compensation and Business Insurance, which invoices have been entered into 'Purchases'. We entered into a finance funding agreement where the funder will pay the invoices out and we will repay the funder with 10 installments over the year, including an application fee … [Read more...]