Accounting with MYOB v18 Chapter Three Cash Accounting
Cash Accounting Activities 1. Receive and pay money using Banking. 2. Create and use Recurring Templates. 3. Combine receipts for banking. 4. Identify and record Bank Entries. 5. Reconcile MYOB s records with the bank statement. 6. Print a Bank Reconciliation report. Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 44 2
Two Accounting Methods Accrual Buy things on credit. Sell things on credit. Record transactions when you buy or sell. Responsible for GST immediately. May have to pay GST collected before its actual receipt. Cash Buy for cash or credit. Sell for cash or credit. Record transactions when the payment occurs. Responsible for GST after payment. Best for small business. Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 45 3
Cash Accounting Important points Receipts. Cash sales. Received from debtors. Cash Drawer. Used to hold receipts from all sources until banking. Bank Deposit. Only once on any day. Payments. All payments made by cheque. A separate cheque for each payment. Use the recurring cheques feature for regular payments. The To Do List helps with regular payments. Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 45 4
Record a Receipt Procedure Receive Money in the Banking module. Insert the details. Save as Recurring. Create the recurring template. Record the receipt. Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 47 5
Receive Money Insert the details Insert the given sales information Then click Save as Recurring Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 48 6
Receive Money Save the Recurring Template Set the Frequency at Never Then click Save Then Record the current receipt Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 48 7
Receiving Money (1) Background Bank reconciliation relies on MYOB s record of receipts being the same as those of the bank. Receipts from different sources must be grouped in a holding account. Then each time you take money to the bank, you do a Bank Deposit in MYOB. Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 50 8
Receiving Money (2) Procedure 1. Change the destination account to 1-1160 Undeposited Funds. 2. Put all receipts into this account until you go to the bank. 3. Prepare an MYOB bank deposit that is identical to the deposit slip and cash taken to the bank. Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 50 9
Grouping Receipts The first receipt Group with Undeposited Funds Insert the given sales information Then click Record Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 50 10
Grouping Receipts The second receipt Group with Undeposited Funds Insert the given sales information Then click Record Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 51 11
Grouping Receipts The bank deposit Set the Date Deposit Then click Record Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 51 12
Correcting Errors Using the Journal the Journal button. Select the journal you want: e.g. Receipts or Disbursements. Set a date range that includes the error. Locate your transaction from the list. the Zoom arrow to display the invoice. Make your correction. OK. Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 52 13
Dates Correcting Errors Using the Journal Scroll Select the Journal Choose Receipts Set the Dates Scroll to the transaction Continues on Slide 15. the Zoom Arrow Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 52 14
Correcting Errors Using the Journal The Zoom Arrow brings up the transaction In this view you can make any changes you want Then click OK Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 53 15
Spending Money Background Use a separate cheque for each payment. This provides a clear audit trail for the expenses. Payments are recorded Tax Inclusive as this is how you receive the bills. Insert a clear memo to assist with the audit trail. Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 55 16
Spending Money Procedure Spend Money in the Banking control centre. Insert the first cheque number. Future cheques update automatically. Insert the details of the cheque. Insert the allocation account. Save as Recurring, or Record. Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 55 17
Spending Money The first cheque Insert the given payment information Save as Recurring Then click Record Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 55 18
Bank Reconciliation Important Points Work from your records: Using printouts or on-screen. items that appear in your records and those of the bank. Don t click items not in the bank statement. Add to your records any Bank Entries of receipts or payments. Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 59 19
Bank Reconciliation Procedure Reconcile Accounts. Select the Cheque account number. Insert the closing balance from the bank statement and its date. in the column items appearing in the bank statement. Use the Bank Entry button to add new items from the bank statement. Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 59 20
Bank Reconciliation Initial information Select 1-1110 Cheque Account Insert the New Statement Balance Then press Tab and all the transactions will appear. Insert the Bank Statement Date Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 59 21
Bank Reconciliation Input Bank information (1) against all items that are in the Bank Statement Then click Bank Entry We will now enter the Bank Fee and the account Interest. Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 60 22
Bank Reconciliation Input Bank information (2) Insert the given charge and interest information Then click Record Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 61 23
Bank Reconciliation The final act Zero The Out of Balance figure must be Zero Then click Reconcile Items not ticked this month can be expected to appear on next month s bank statement. Sutherland - MYOB Accounting Plus v18 - Cash Accounting - Page 61 24