What’s new

29 June 2018

Moving to Online Accounting

Moving to Online Accounting

We have begun contacting all clients who are not yet using an online accounting program for their bookkeeping, particularly those with employees, to let them know that now is the time to start transitioning to an online accounting subscription program. We recommend Xero as our preferred online accounting system.

It has become necessary to make the move over to online accounting, due to the new Standard Business Reporting requirements by the ATO and the introduction of Single Touch Payroll.

Standard Business Reporting (SBR) is a system of streamlining information between businesses and government. If your accounting program is SBR compliant then your payroll, super and other reports can be lodged directly from your SBR-enabled online accounting program to the ATO, superannuation clearing house, or other government agency. Lodgements can also be confirmed in real-time.

Single Touch Payroll (STP) is being introduced as of 1 July 2018 for employers with over 20 employees and from 1 July 2019 for all other employers. Single Touch Payroll is a new reporting scheme that requires employers to send details of each pay run to the ATO via an electronic lodgement system each time an employee is paid. To be able to do this you will need to be using STP compliant accounting software.

The move over to online accounting will also assist with processing as most of the current online accounting programs allow for bank feeds. This means bank account transactions are imported directly into Xero, or your preferred online program, each day. Your accounts can be updated more often and you can access reports to better track how your business is performing.

If you are currently using MYOB for bookkeeping there is the option to bring across historical data from your current MYOB file into Xero. This conversion of data would mean that prior year accounts can be accessed from Xero, without having to refer back to the old MYOB file. Please note, the conversion would need to be done before setting up a new Xero subscription. To discuss this option further, please call our office.

If you’d prefer to use a different online accounting program, please let us know so we can discuss your requirements and confirm that the program will be SBR and STP compliant. 

The best time to make the change over is the new financial year, so we can start recording your accounts in Xero, or your preferred online program, from 1 July 2018 on. If you’re ready to make the move over to Xero, please let us know and we can discuss the next steps to get your subscription up and running.

 

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