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Bookkeeping – Case Study - Client Entitlements fix up

images/Bookkeeping2.JPGStarting a new client, we always do an overall review, then as time permits, review the settings and details further, such as staff entitlement balances in the system, and send over a report to review.

The client emailed -

Clearly our staff records are WELL out of date as most of these people are no longer with us, and been paid out their leave on termination.

I will edit this document and highlight whom has left -

Can you also please ensure that the leave is correctly accrued based on their base wage "ordinary pay"and not over that please, as per fair work guidelines

I also need you to check DS, as he resigned as was paid out, and then re-commenced employment with us.

DS left at the end of February, and then recommenced on the 13th August.

Therefore his employment is broken, therefore can you please check this figure.

I would suggest the one I have highlighted was the one he was paid out on resignation.

I would also suggest that Director’s leave details are incorrect considering X should be from 1987, and mine 1992.

Answers –

Staff no-longer with us – NOTE in MYOB, the report will include inactive staff – and most of these are also part of what needs tidying up for STP – Single Touch Payroll (many also have incomplete addresses and info that causes an STP error, as Hari and I found in Oct).

Many DO NOT have TERMINATION dates – that is why they still have balances – another part of the STP tidy-up required (termination dates, which also eliminates requiring the address detail).

Leave Balances left – It still may be correct and paid out, as you said they had been paid – eg when they were paid leave, if another payroll category is used – as MYOB recommends, called “Unused Holiday Leave”, then the balances of accrued leave will not be reduced to zero – depends how the previous bookkeepers did it.

Termination dates - From Hari and my investigation weeks ago, it looks like many of the old staff are missing TERMINATION dates – this automatically wipes off the leave balances.

I believe that may be the case with all the old staff you highlighted.

Often termination is not manually entered on staff file – so if they left in past years, not easy to find the dates – we may need to enter 30 June, last tax year for saving time – TBA.

Hari and I started that back in Oct for half an hour, but there were over 65 errors/issues including termination dates that needed attention, so we had to leave it as daily work and wages was the priority, as reported to you, we need to come back to STP.

Leave accrued Calculation MYOB – Hari and I reviewed the calculations in MYOB already – back in Oct - they are set correctly (%) and to be in proportion to work.

The problem is they cannot be given a max –

images/Entitlement set up.jpg

It is difficult –

If certain staff consistently work OVER 38 hrs, we could set a fixed rate per week at 38 hrs.

But - if we use “Equals” for a fixed number of hours a week – they can still accrue too much if they work UNDER 38 hrs.

And if they SOMETIMES work LESS than 38 hrs – they will accumulate TOO much.

Not sure why MYOB has not allowed a max to be set – but it must not be requested enough, above the many other updates they get requests for each week and have to prioritise which are urgent.

For staff & directors/owners, we can us the Fair Work calculator to check the correct leave – however, have past year’s leave for you and T been recorded – manually and in MYOB correctly?

If so great, if you are sure and can show how the amount was derived – we can update both your records with those amounts.

For all staff – Since MYOB rolls the payroll over each year – past years cannot be accessed to see what was recorded.

EACH year needs to be restored and opened!

It is a bit of a job to restore back-ups of each MYOB payroll year back up after payment summaries are completed.

And from asking T in OCT and our search of the system, there is no central storage of all the year end back-ups of all past years of the MYOB file – unless you know/have?

(This is common in many businesses – the back-up is not kept or not labelled well, and are very rarely needed again – but are part of the record-keeping obligation annually!)

It may require estimates for current staff leave – eg Ann leave is not the same each year at Christmas it seems, depending on the work load in Dec/Jan?

We can start a Calendar to record shut downs over Dec/Jan form now on, so we know the current staff annual leave.

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – No-one offers as much!

Or ask a question - Email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 0407 361 596 Australia

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