Myob set up

[Kenster]

Would anyone here know how to set up Myob for IP, shares and lending to a trust?

I have used Myob for two years but have never had it set up properly. Often feel uncertain how/where to record different type of spendings (eg. Capital related expenses vs Straight expenses, Inventory tracking...)

I would like to use it to track income, expenses, assets & liabilities, to reconcile bank statements and to print monthly statements.

Any help or recommendation is appreciated.

Thanks.

 

[Leikela]

MYOB have consultants - I'd get an expert out if you aren't sure what you're doing. People try to do this themselves to save money and trust me, it ends up costing a lot more when your accountant tries to sort out the mess you created. Do yourself and your accountant a favor and get it done properly! It's even difficult to find a good paid bookkeeper, the mess I've seen bookkeepers create frustrates me knowing the client is actually paying them for it.

 

[MichaelW]

Kenster,

I do, but its not something you can just post an answer to here. It takes a lot of time to learn properly and I'm only now becoming comfortable that I'm on top of it. Things like setting up the tax code applicable to each transaction type is critical when you come to do your BAS reports. I use recurring payments a lot but without actually setting them up to recur. I just save my transactions as recurring and then call them up when I need to process them. In that way I know they're linking to the correct expense account and pulling from the correct balance sheet cash account.

I'd recommend a book keeping course and preferably one which uses MYOB.

Once you've got your balance sheet set-up and your transactions understood, then the process of spend money / receive money becomes all you need to process transactions. I do have to enter the odd journal transaction on occassion because I have a balance sheet account for owner's drawings which I can't link to through receive/spend money. I need this as I pay the company credit card bill out of my own (personal) account each month. So its CR Owner's Drawings DR Credit Card Account. That creates the liability to the director on the balance sheet.

I strictly reconcile closing balances on my monthly statements as I process them and date and initial each statement as processed. Its laborious but critical.

MYOB is a great application but does take a certain degree of knowledge before you can use it effectively.

Cheers,
Michael

 

[Kenster]

I'd recommend a book keeping course and preferably one which uses MYOB.

Yes, I have done two courses: Basic Book Keeping and Myob v17. Also have two Myob books (by Veechi Curtis). I guess I have already got the basic understanding of how to get Myob going.

What I am after is how to adapt Myob Chart of Accounts for IP, Shares and Trusts.
(Not cover in courses and books).

For example: How do I enter:

- On 1-Jan, I deposited 1k for the purchase of a 300k IP#1
- On 1-Feb, I paid 29k balance of deposit (from PPOR LOC)
- On 1-Mar, I settled IP#1 with 270k + 14k stamp duty (from PPOR LOC)
- On 1-Apr, I spent 20k to do up IP1 (before renting out)
- On 1-May, I finance IP1 for 240k (80% lend at new valuation of 350k)
Use this 240k to pay back PPOR LOC

Thanks.

 

[MichaelW]

Kenster,

I assume this is all the one operating entity and not a Trust structure or some such. If that's the case then the following would be my thoughts:

- On 1-Jan, I deposited 1k for the purchase of a 300k IP#1

DR Investment Property (Asset) CR Cash (Asset)

Both sides of this are balance sheet transactions.

- On 1-Feb, I paid 29k balance of deposit (from PPOR LOC)

DR Investment Property (Asset) CR PPOR LOC (Liability)

Both Balance Sheet. Crediting the LOC Liability increases the liability and reflects the draw down. Note that if this is outside the operating entity then it should have been CR Owners Drawings

- On 1-Mar, I settled IP#1 with 270k + 14k stamp duty (from PPOR LOC)

DR Investment Property (Asset) CR PPOR LOC (Liability)

As above.

- On 1-Apr, I spent 20k to do up IP1 (before renting out)

DR Invesment Property (Asset) CR Cash (Asset)

I would capitalise that to the IP Asset and not expense it. Alternatively you could have DR Maintenance (Expense) CR Cash (Asset)

- On 1-May, I finance IP1 for 240k (80% lend at new valuation of 350k)

DR Cash (Asset) CR Loan (Liability)

Put the money in cash for now but create the loan liability. Alternatively DR suspense account.

Note too that the valuation is irrelevant. From a book keeping perspective the IP Asset is worth whatever you've paid for it. If you make a profit on disposal then you account for it then.

Use this 240k to pay back PPOR LOC

DR PPOR LOC (Asset) CR Cash (Asset)

Repay the PPOR LOC by DR it and take that money out of Cash or Suspense Account.

It really all is just introductory book keeping. You need to know what your balance sheet looks like and how to manage it.

Cheers,
Michael

 

[Evachange]

I am a MYOB and QuickBooks Professional Partner.

When using either package try and think about the accouting concept behind what you are doing, remember there are alway two sides to each transaciton, for every credit there MUST be a debit etc.

I will have a look at the posts this afternoon and come back with some more detail responses. As I am off to teach MYOB at the community college, its a very small part of what we do.

So get those MYOB or Quickbooks quesitons ready!

Kind Regards,

 

[Evachange]

.

What I am after is how to adapt Myob Chart of Accounts for IP, Shares and Trusts.


Hi,

With regards to setting up MYOB for shares and Trusts, keep in mind that you would have a MYOB Data file for each legal structure, if you have a trust then you would have a data file for the trust, also you would need to have one for your personal stuff as well.

For example I have two trusts, and two companies, so I have a data file for each, 4 in total.

If you deposited $1k for the purchase of a property then you would have to have a libility account, starting with the number 2.

You would debit your chq account and credit the libility account. The libility account is a loan that say the trust owes you money.

Hope this helps.

Still in training so will come back with the other transactions soon.