End of Year Reset
Bizprac allows for data entry for a period covering 2 years. Usually this will be the current financial year and the next financial year. At the end of the accounting period covering the 2 years, you will need to complete an end of year reset. This will need to be completed if you wish to continue adding new information into Bizprac. An end of year reset can be completed once all the financial information has been finalised by your accountant. The procedure will automatically create a copy of the current database, roll the accounts information over, creating a database of the historical data. This can be accessed later as required.
Cash or Accrual Accounting
Cash or Accrual is the accounting method that is used for the calculation of the BAS and the paying of GST. This setting will determine the method used to calculate the BAS, so it is imperative that this is selected correctly. The GST method is generally set when the Business Books are setup; they will only change if directed to do so by the ATO. Cash: this is the simplest method of accounting. Income is reported when it is actually received, and the expenses claimed when they are actually paid. Accrual: income and expenses are reported as soon as they occur; regardless of whether money has changed hands or not. If you are unsure about which accounting method, you should be using, contact either your Accountant or the ATO.
Clearing Bad Debts
If there is an amount that will not be paid, create a credit note for the amount being written off. You can either use the income account or use a separate bad debts ledger. ALLOCATING THE CREDIT NOTE In the cash receipts menu add the debtor details leaving the amount column at $0.00. At the list of invoices, highlight the credit note and click pay highlighted. Then highlight the amount that will be cleared and click pay highlighted.
