General Tips

More coming soon!

Reimbursements to Owner

Q:  Sometimes stock or one off goods are purchased on the credit card of my partner, then the money for the sale is inputted into the business account, then the amount credited on my partners account is then repaid from out account how do we account for this? A: There...

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Reversing a Bill From a Locked Period

   To clear an old bill from accounts payable that shouldn’t still be there, and is dated in a Closed period, do the following:   STEP 1:    Do a journal entry to reverse them. Date the journal the 1st day of the quarter that is NOT CLOSED. The journal entry would be:...

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Zero Dollar Clients in Accounts Receivable

Question: I have got two customers on the accounts receivable list that has nothing owing. I have marked both inactive and they still come up. Any suggestions? Answer: If you double click the amount in the Receivables report you will see there is an amount owing + an...

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How Much Do I Put Away For GST?

HOW DO WE CALCULATE FOR GST? The GST is not just 10% of sales. Tt is 10% of sales, less 10% of the purchases you make that have GST on them. The easiest way and the way I do it for myself, is just see how much GST you end up paying this first quarter, and divide it by...

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Do I Need More Than One Bank Account?

WHY DO COMPANIES HAVE MORE THAN ONE BANK ACCOUNT? There are multiple reasons a business may choose to have more than one bank account.    Some companies have a main cheque account and then a tax management account. They transfer regular amounts into the tax management...

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Recording a New Loan

  Step 1 – RECORD THE PURCHASE and SET UP THE LOAN   I always find it easiest to set up loans with a straight journal entry . a DEBIT to the appropriate FIXED ASSET Account (ie. GENERAL POOL ASSETS) for the GST exclusive cost of the Asset purchased with the CAG code...

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Finance Options

Note: This is not advice. Please look at it as a guide only and get specific advice from your own Tax Agent or Lawyer. Question: I am Cash Based for GST. I need to buy a new car (or piece of business equipment). What is the difference between a Lease a Hire Purchase...

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The General Clearing Account

What is the general clearing account used for and how is it used? The GENERAL CLEARING ACCOUNT is used for a multitude of things and is an extremely handy account to have in your Chart of Accounts. The GENERAL CLEARING ACCOUNT is set up as a BANK Type Account in the...

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Recording Banking Transactions

One of the regular mistakes that I find when I am looking at my clients accounting files is the incorrect usage of tax codes in banking transactions. So help with this I have created a list of the type of banking transactions you might come across and the correct tax...

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