MYOB Account Numbers

Within each of the major account types (header or detail) there are a number of account types that may be nominated. The account number in MYOB is a four-digit number that is added to the prefix that identifies the type of
account it is.

The number you give an account will determine it's order and grouping in the financial statements. So what are the types of account and their prefix in MYOB?

1. Asset:
In the simplest of terms, assets are what is owned. Assets are resources controlled by the business from which future economic benefits are expected. Examples of assets include cash, accounts receivable, furnishings, vehicles and equipment. Assets will probably be grouped as current or non-current (but we'll get to that in another lesson).

2. Liability:
In everyday terms, this basically means what is owed. Liabilities are the future economic sacrifices that the business is obliged to make. Examples of liabilities include accounts payable, credit card debts and bank loans. As with assets, liabilities will also be grouped as being current or non-current in nature.

3. Equity:
Equity (frequently called owner's equity or proprietorship) is the owner's claim on total assets of the business. A simple way to look at equity is 'what the business owes to the owner.' Common equity accounts include capital, retained earnings and drawings.

4. Income:
Income (also called revenue) arises from the ordinary activity of the business. This usually comes from sales or services provided in the ordinary course of business.

5. Cost of Sales:
Cost of sales (commonly called COGS or Cost of Goods Sold) are the expenses to the business directly related to the goods being sold. As service businesses do not have inventory, they have no need for COGS accounts. Typical cost of sales accounts include Purchases and Freight Inwards. Cost of Sales are taken from Net Sales on the Profit & Loss in order to arrive at the gross profit figure.

6. Expense:
Expenses are assets consumed or services used in the process of generating revenue. Typical expenses might include things like rent, wages paid, office supplies, bank fees, advertising expenses and electricity. Expenses are taken from gross profit to arrive at net profit.

8. Other Income:
Other income is where you would put income received which is unusual or outside the ordinary revenue-generating activies of the business. Examples
might include interest received or the proceeds from disposal of a long-term asset.

9. Other Expense:
Other expenses is often used for out-of-the-ordinary expenses or those not related to the income producing activity of the business.

For more MYOB information, visit our MYOB Tips and Tutorials Page.

Disastrous Domain Names

If you are planning on registering a domain name, it's so important to look at it closely... see it as others will.

What follows is a series of actual unfortunate business domains.


Looking for a pen? Look no further than Pen Island at
http://www.penisland.net/

If you’re looking for computer software, there’s always
http://www.ipanywhere.com/

Experts Exchange is located at.. wait for it...
http://www.expertsexchange.com/

The Mole Station Native Nursery, based in New South Wales has since removed their site at
www.molestationnursery.com

The First Cumming Methodist Church has their website at
http://www.cummingfirst.com/

Need a therapist? Try Therapist Finder at
http://www.therapistfinder.com/

A site called ‘Who Represents' where you can find the name of the agent that represents a celebrity has the domain name
http://www.whorepresents.com/

Locate speedy art designers at
http://www.speedofart.com/

Then of course, there’s the Italian Power Generator company…
http://www.powergenitalia.com/

I can't help wondering, why didn't somebody tell them?

REMINDER: Quarterly BAS Due Soon

Remember to lodge you fourth quarter Business Activity Statement (BAS) with the Tax Office by the 28th July.

If your business employs staff, you will need to make your quarter 4 superannuation guarantee contributions by 28 July also.

MYOB and Windows Vista

It seems the change to Windows Vista is proving a headache for a number of people using older versions of MYOB.

It would appear MYOB Australia will only be supporting users of MYOB Accounting and AccountingPlus Version 16 or Premier version 10.

For details of Vista supported products and links to any upgrade downloads, see our newly uploaded page MYOB and Windows Vista.

MYOB: Save Time with Batch Reporting

Do you find you are printing the same reports each time? You can save time by printing all of your nominated reports at the same and with just one click of the print button.

How do you do that? It is called batch reporting and setting it up is simple.

Step 1:
From the Reports drop-down menu at the top of the screen, select Report Batches.



Step 2:

Click on the New button. In the Batch Name field, enter a name for the batch.
In the example I have called the new batch "Usual Monthly Reports."




Step 3:
Now you just need to put a click next to each of the reports you want to include and select OK.

As you can see above, I have chosen a Trial Balance, Balance Sheet and Profit & Loss.


HINT: You can add or remove reports from batches at any time by selecting the batch from the list and clicking on the Edit button.

Printing a batch for a selected period

Step 1:
Printing a batch is quick and easy. Firstly, go to Reports > Report Batches.

Step 2:
In the period field, select the period to date that you want to print the batch for. Highlight the name of the batch you wish to print and click on the Print button.

As you can see, using batch reports is a real time-saver and easily customised to suit your own needs.

Note: This tip applies to MYOB Accounting and MYOB Accounting Plus Version 10 or later.

For more MYOB hints, visit our Tips and Tutorials page.

Are you a Guerrilla!?

by Stuart Ayling of Marketing Nous

On numerous occasions I've heard clients describe their marketing by saying, "I do guerrilla marketing". What they often mean is - I'm not big so I don't need to plan, I'll just think of things as I need to.

In fact, the term 'Guerrilla Marketing' is the title of a book published in 1984 by Jay Conrad Levinson...and his concept was anything BUT reactive.

The book explained Jay's three secrets for great marketing results:

1) Be committed to your marketing program.

2) Think of the program as an investment.

3) Make sure your program is consistent.

"But where do I start?" I hear you ask.

To succeed, make sure you are on track with the right plan of attack. It doesn't matter how small (or large) your marketing budget is - you want to make the most of it.

Then be consistent and enthusiastic with implementing your chosen marketing activities. Customers will notice and you will benefit.

Remember, Guerrilla Marketing is more about investing your time and effort than investing your hard-earned money. So be prepared to do some legwork and watch the benefits unfold!

For more guerrilla tips see Jay Conrad Levinson's web site at http://www.gmarketing.com/.

MYOB How-to: Set up BAS Information for GST

In addition to the GST, a business will report other obligations such as its income tax instalment, Fringe Benefits Tax instalment, PAYG Withholdings, Wine Equalisation Tax and Luxury Car Tax.

The BAS Information window is used to set up the main reporting options for GST.


Step 1:
From the top menu select Setup and scroll down to click Company Information.





Step 2:

Click on the BAS Info button at the bottom of the window. (Note: You can also change the existing
business address or contact details from the current area).





Step 3:

There are a number of options in the Bas Information set up and these are selected using the drop-down
arrows at the end of each selection field.


In the Goods and Services Tax section, select the reporting frequency, the accounting basis (cash or accrual), the calculation
method and the GST reporting option (1, 2 or 3).




Step 4 :
Now do the same in the PAYG Instalments and PAYG Witholdings section to select the options which apply to you.

Needless to say, it is important the BAS information and reporting options are set correctly and kept up to date if you are relying on them to prepare figures for the ATO.

For more MYOB how-to's and tips, visit our Tips and Tutorial Page.

MYOB How To: Add Users with Passwords

MYOB allows you to add users with passwords and set the level of access the new users have.

This can be quite useful if you have staff members who enter invoices but do not wish to permit them access to alter
banking functions or other sensitive data.

Step 1:
Open preferences by clicking the Setup pull down menu at the top of the screen and choosing Preferences.

Step 2:
Click on the tab for Security.

Step 3:
To add users and set passwords, click on the Password button at the bottom left of the security window as shown below.



Only the person logged in as the Administrator can add or edit users and their passwords.

Step 4:
To add a user click on the New button. The program will prompt you for the
new user details.




Step 5:
Enter a User ID and tab to the password field.
Type in a password and TAB.
Type in the password again to confirm.
Click on the OK button.


Step 6:
To stop a user using a particular function, make sure that user is selected on the left-hand side of the User Access window.

Click in the column titled "Not Allowed" against the functions you want to bar.

HINT: Clicking a function heading selects all of the functions under that heading.

In the example above, I have restrict access to all of the banking functions for the user CHRISTIE.

Click on the OK button when you are done and that's all there is to it.

Quick Biz Tips - Hours of Operation

Hours of Operation

Give serious thought to your hours of operation.

Most businesses operate Monday - Friday from nine to five. The problem with this is many of your customers are working these same hours. They are unable to buy from you at these times.

Make doing business with you convenient for your customers.

MYOB How To: Delete Unnecessary Tax Codes

When you first install MYOB, the program is already set up with several tax codes.

Some of these may not be necessary for your business. You can delete tax codes you do not need and "tidy up" the tax list if this makes data entry a little easier for you.

Here is how to do it:

Step 1:
Select the Lists pull own menu from the top of the screen and scroll down to choose Tax Codes.




Step 2:
Click on the detail arrow next to the code you want to delete.
In this example I will be deleting the Luxury Car Tax code.

Step 3:
Now simply select the Edit pull-down menu and click on Delete Tax Code as shown below.




Click OK to exit the Tax Code Information window and you're done.


HINT: A consolidated tax code is used to group together more than one code.
A consolidated code will be identified in the Type column of the Tax Code List. You will find that a consolidated tax code must be deleted before the individual codes can be deleted.

Watch Your Customers Grow - Part 2

by Stuart Ayling of Marketing Nous

Now that we're thinking on the same wave-length you will see there are many places where you can nurture your customers.
Try it:
- On your web site.
- On your packaging.
- In your communications.
- During the sale process.
- When you make deliveries.
- When you are running special events.
- When your customers come to visit you at your store, office or facilities.

Just like raising children, when you look after your customers - with their best interests at heart - they will recognise the integrity of your actions and reward you in many ways. (Although children are sometimes slow to respond!)

You can expect to get:

• Greater loyalty - within reason. You always need to offer value.
• Higher average sales - as your customer will be more likely to purchase other items.
• Higher profit margins - within reason. Loyal customers who appreciate that you do look after them are more willing to pay a premium for buying from you. At least they will be less likely to shop around purely for the lowest price.
• More cost effective marketing. You will attract more customers for your marketing dollar, and achieve higher value sales.
• Lower customer churn rates. Why would your customers buy elsewhere when they recognise the value you provide? (Competitively priced for your offering, of course)
• A deeper, more meaningful relationship with your customers - enabling you to weather the inevitable problems that arise. You must earn the trust of your customers.
• A more secure future for your business - which means less worry for you and your staff.

Have a good look around you. How many businesses do you see nurturing their customers? See the opportunity for you?

Watch Your Customers Grow - Part 1

by Stuart Ayling of Marketing Nous

Nurturing your customers and helping them to develop into better people (who use more of what you sell) is often like raising children - but without the teenage worries! Customers need help to know how best to use your products and services. Look out for their needs and you will be rewarded in multiples.

I can hear some of you thinking "Me! Nurture customers! How can I do that?" The good news is that it's not too hard. Just give yourself some time to get into a few good habits and…before you know it...you'll find yourself wanting the best for your customers every day.

Nurturing activities come in many shapes and sizes. Try some of these for fit:

Make it super easy for your customers to select which item they need from your range.

• Give information and tips to put them on the right track.


• Give your customers a guarantee of quality. If you don't think you can do this have a serious think about how good your products are. Did you know that even for those companies offering a 100% money back guarantee, a very small percentage of customers ever use it. It's the perception that counts!


• Have a returns policy for your goods that is easy to follow and accessible to your customers.


• Make sure your staff have the 'right' attitude. Keep them up to date with regular training that is good for them and for you.


• Communicate with your customers regularly on topics that are timely and of value to them. Don't just call them when you want something done - like a sale or special offer to fill your slow periods. Email is often the tool of choice these days as it is convenient, ubiquitous, cost-effective and potentially interactive.


• Surprise them. Give them a bonus when appropriate. Give them something special to tell their friends and neighbours about. It might be a bonus product, special offer, upgraded delivery or service, fast-response time etc


• Make customers feel at ease in your store, office or service area. Are they comfortable? Is it intimidating? Consider the effect of furnishings, décor/fittings, layout or location. Find out what works best.

Continued in Part 2

Quick Biz Tips - Hiring the Right Staff

Hiring the right staff

Technical skills are great but when hiring new staff it is just as important (if not, more so) to consider personality, enthusiasm, shared values and the ability to work well with others. You want the right 'fit' for your individual business.

Remember, most skills can be learned or developed. It is a lot harder to alter personality types or bad attitudes.

More Help for Business Thanks to Online Tools

The Tax Office has released three new web-based tools to help employers understand and meet their tax and super obligations.

Tax Commissioner Michael D’Ascenzo said that a priority for the Tax Office was to help business people meet their obligations easily and cheaply.

“Different tax and super obligations apply to workers depending on whether they are an employee or an independent contractor.

“The free interactive tools we have developed for business provide an easy way for employers to determine and calculate their obligations,” Mr D’Ascenzo said.
The tools are:

• an employee/contractor decision tool, to help people work out whether their new or existing workers are contractors or employees for tax and super purposes
  
• a superannuation guarantee eligibility decision tool, to help employers work out if they have an obligation to make super contributions for their workers, and
  
• a superannuation guarantee contributions calculator that calculates how much super employers should be contributing for their eligible workers.
  

Each tool takes less than 15 minutes and guides people through a series of questions. Employers will receive an online report at the end of each session.

People who are not sure whether their workers are employees or contractors should use the employee/contractor decision tool first, before using the super tools.

The tools are available on the Tax Office website at no cost, 24 hours a day, 7 days a week.

To use web-based decision tools and calculators, visit http://www.ato.gov.au/ and select: For Business – Employer essentials – Tax rates, calculators and tools – Other calculators and tools.

New personal income thresholds to apply from 1 July 2007

The Tax Office today reminded employers to apply the new personal income thresholds to all payments they make to their employees from 1 July 2007.

The new rates have been introduced following changes to the income tax thresholds announced in the May Federal Budget.
Employers should be aware that changes to superannuation from 1 July means there are also three new withholding schedules (tax tables) for payments made to superannuation funds.

Deputy Commissioner Erin Holland said the new weekly and fortnightly tax tables have been mailed to all employers in the last fortnight.

“The new rates apply to all payments made on or after 1 July even if some of the payment relates to work performed before this date.”

These new weekly and fortnightly tax tables are also available from most newsagents, the Tax Office website http://www.ato.gov.au/ or by calling 13 72 26.

Where Great Marketing Starts

by Stuart Ayling of Marketing Nous


"I was thinking about advertising in this paper."
"I'm just about to print this brochure, can you give me your comments."
"We've done direct mail before, but we weren't happy with the response."

As a consultant I'm often faced with comments such as these. But it's vitally important to recognise that marketing is a process. It's not just an activity or two.

Most businesses that have marketing problems haven't fully considered their marketing process. As a result they focus on a short-list of marketing tactics that are often being used for the wrong reasons.

Great marketing starts at the beginning. And the beginning is the same as the end - your client.

Marketing is the process that attracts new clients, manages the process of client satisfaction, and keeps those clients coming back (or referring others to you). So the focus of great marketing is on the client, not just on the marketing tactic.

This means that to develop more effective marketing tactics you need to think more closely about your clients (or prospects). What should you think about? Try something along the lines of:

• What are their real problems?
• Who would they normally turn to for help?
• Why would they use your type of services?
• Where can you find them?
• How can you get your message to them?
• How can you help them, and in turn get them to recognise your business?
• What concerns would they have about using services like yours?

The answers to these questions will help guide you to a sensible choice of marketing tactics, and give you a better idea of what you need to include in your marketing messages.

Quite often simple marketing can be very effective. For example, one of my clients had been advertising in a trade journal for around 12 months. Over that time they had zero response from their ad. Not one call. Of course prospects may have read the ad's, but there were no leads generated.

As part of a progressive marketing makeover for that client I designed another type of ad. It was very different from the previous one, and very different from competitors' advertisements. But it was very simple. It focused on the prospects needs.

From the very next issue of that same journal my client started receiving leads from the ad. They were happy. I was happy. They had improved their results.

Great marketing starts with your client. Without a doubt.

Quick Biz Tips - Know Your Competition

Know your competition

Don't be in the dark about what the opposition is doing. I can assure you that your customer's will know!

Visit their business, read their brochures, check out their website, get on their mailing list and become familiar with their products. Why not even become a customer and make a purchase from them?

You need to know how you are different to them in order to tell your customers about it.

MYOB End of Financial Year Guide 2007

I've just uploaded the MYOB End of Financial Year Guide for 2007 to our server.

You can download the PDF at directly from our site (750 KB so give it a moment) or right click the image to the left and select "save target as".

If you need any help rolling over the financial year, feel free to send us an email or give our office a call.

July Lodgement Dates

14 July:

PAYG withholding payers must issue payment summaries to payees (ie employees and other workers).

Reasonable benefit limits (RBL) reporting – all RBL reportable benefits paid in June 2007 must be reported to the Tax Office on or before this date.

Superannuation benefits paid up until 30 June 2007 are still required to be reported for RBL purposes. The final reporting date for funds that are up to date with their reporting obligations should be 14 July 2007.

21 July:

June 2007 monthly activity statements: final date for lodgment and payment.

Quarter 4 (April – June 2007) activity statements containing a monthly GST obligation: final date for lodgment and payment. To ensure you receive the correct amount of credit in your income tax assessment, finalise all your PAYG instalments before you lodge your tax return.

Quarter 4 (April – June 2007) consolidated instalment activity statements: final date for lodgment and payment by a head company of a consolidated group.

28 July:

Quarter 4 (April – June 2007) activity statements: final date for lodgment and payment. To ensure you receive the correct amount of credit in your income tax assessment, finalise all your PAYG instalments before you lodge your tax return.

Quarter 4 (April – June 2007) instalment notices – forms R and T. Final date for payment and, if varying instalment amount, lodgment (two-instalment payers are also required to pay 25% of their PAYG instalment liabilities). To ensure you receive the correct amount of credit in your income tax assessment, finalise all your PAYG instalments before you lodge your tax return

Quarter 4 (April – June 2007) instalment notices – forms S and T. Final date for payment and, if varying instalment amount, lodgment (two-instalment payers are also required to pay 25% of their PAYG instalment liabilities).

30 July:

Superannuation guarantee contributions for quarter 4 2006–07(1 April – 30 June) are to be made to the fund by this date.

9 Ways to Keep Clients Coming Back for More #9

by Stuart Ayling of Marketing Nous

9) Send reminders.

Many businesses have the opportunity to offer ongoing services for previous clients. Send a reminder about servicing, maintenance, periodic reviews, or changes to relevant regulatory requirements.


Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #8

by Stuart Ayling of Marketing Nous

8) Promote your business.

Demonstrate the value you can provide. If you have recently written a useful report, or presented a topic at a conference, or issued a press release, or conducted some research, or completed an interesting project, tell your clients about it. Don't keep your hard work a secret.


Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #7

by Stuart Ayling of Marketing Nous

7) Ring them up.

Where possible get on the phone to previous clients and have a chat. Make it brief but meaningful. Keep posted on their current projects and priorities. Seek out ways you can help.


Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #6

by Stuart Ayling of Marketing Nous

6) Write a note.

Get a pen and write a personal message. This could be triggered by seasonal activities, birthdays, business events, or personal circumstances. Let your clients know you are still thinking of them.


Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #5

by Stuart Ayling of Marketing Nous

5) Run special events.

Offer a free (or low cost) seminar to your clients on current issues. Invite complementary businesses, local business people, or celebrities to present new ideas. Use breakfast meetings, lunchtime executive briefings, or evening functions. The key here is to add value for your clients, outside of their usual dealings with you.


Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #4

by Stuart Ayling of Marketing Nous

4) Make special offers.

Find ways to encourage previous clients to buy from you. Examples may be: package offers; time sensitive deals; introducing new services; pre-releasing information or products to current clients before the general public.


Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #3

by Stuart Ayling of Marketing Nous

3) Use direct mail.

This is your pipeline to future sales. Create regular opportunities to communicate directly with your previous clients, especially if your service has a long sales cycle. Keep in touch between purchase decisions.

Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #2

by Stuart Ayling of Marketing Nous

2) Maintain your database.

This can be as simple or complex as you like. Just make sure it meets the needs of your business. You must have suitable contact details, and preferably some measure of sales value. For example, I use email extensively with my clients, so having current email addresses is paramount. But I have clients who must use regular postal mail to communicate with their clients, as their clients do not widely use email. So postal address details are critical in their situation.

Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #1

by Stuart Ayling of Marketing Nous


A lot of effort is put into getting new clients. We all know our client base will change. Previous clients can move to a new area, sell their business, close down, or change their priorities. So finding new business is always important - but so is keeping your previous clients. Here are nine ways to keep previous clients coming back for more!


1) Provide exceptional service.

Sounds obvious, but is very hard to do consistently. If clients believe they can't do better elsewhere, they won't succumb to the temptation of trying another provider.


Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.