Pam Pitt profile image

Pam Pitt
Top 10% Accounting

Partner at Bookkeepers 4 u

Member Since November 2012

Cremorne, VIC,

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46 FOLLOWERS

Bookkeepers 4 U is a team of experienced, trained and professional bookkeepers who offer a premium service. No job is too difficult! We give accurate, up to date accounts - accountants love our work because they can rely on our data. Our bookkeepers can work onsite or on the cloud, using mainly MYOB and Xero products.

Qualified skills

Taxation
Accounting
Payroll
Bookkeeping
Business Consulting

Reputation

Top 10%
Accounting

Pam Pitt answered this question

Anonymous

Asked this question - Accounting

Do I need to hire an accountant with a CPA?

I would say that it very much depends on the role that the client is looking to fill and the size and budget of the client's business.  What does "anonymous" want the accountant to do?  Is it a matter of a small business hiring someone to do bank reconciliations and run reports?  Or is it a large business requiring budgets and board reporting?  Or is it a matter of finding an external accountant to provide advice and tax reporting?

CPAs and CAs usually are expensive to hire, so you would want them to be filling a role that their qualifications justify.  You wouldn't want them in a role that a bookkeeper could perform.

Pam Pitt answered this question

Michael Reid CA
Michael Reid CA, Do All The Things! at Michael L Reid CA

Asked this question - Accounting

Do you think MYOB is the worst accounting package in the world?

Well, I can't quite comment on all the accounting software in the world!  But there is a very clear, unbiased assessment of MYOB, Xero, Quickbooks and Saasu on BusinessEEZ - I have accessed it through this link



http://veechicurtis.wordpress.com/2011/11/04/cloud-accounting-review-of-myob-quickbooks-xero-and-saasu/



as it is easy to navigate to the feature comparisons from this page.  Basically, it seems to be a case of horses for courses...different software suits different businesses.


Pam Pitt answered this question

Michael Reid CA
Michael Reid CA, Do All The Things! at Michael L Reid CA

Asked this question - Accounting

Do you think MYOB is the worst accounting package in the world?

My clients are bigger sized businesses with complex payroll and inventory.  They have mainly used MYOB accounting software for over 15 years, many with ERP and POS add ons.   Similar software packages haven't been able to offer the same functionality for my clients, and certainly not for the price.



I haven't pushed them into Cloud Accounting - their current MYOB software suits their business needs.  I think they would rate MYOB as the best software in the world.!!  I will continue to put new clients onto MYOB when they have more complex requirements, knowing that they can use the software locally but having the option to put it on the cloud when required.



I will give MYOB the same amount of time to sort out their cloud offering as Quickbooks required when it went to SQL.  


Pam Pitt answered this question

Johnny Li
Johnny Li, Director at Naive and Young

Asked this question - Accounting

Which part of my online business income is or isn't taxable?

Feel free to ask some more direct questions, if my answer was too general...


Pam Pitt answered this question

Robin Dickinson
Robin Dickinson, Owner at RAD International

Asked this question - Accounting

Is accounting software such as MYOB, Xero or Saasu an overkill?

Accounting software makes business EASIER for SMEs.



If you use accounting software, you know at any time:



1. how much you are owed by your clients, who is overdue and needs reminding



2. how much you owe your suppliers


3. what your cash flow is


4. how much you are earning


Plus you can


1. produce good looking invoices, email them instantly and get your cash in faster.


2. run reports to analyse your business (sales trends, inventory turnover, best sellers, best customers, check that your costs are under control) and compare prior period performance and predict future growth


3. run payroll accurately and produce all your end of year reporting painlessly


4. produce GST reports instantly


5. control your inventory


6. give your bookkeeper/accountant a file that will reduce their workload and enable them to help you without costing you a fortune.


And if I were looking to buy a business, there is NO way that I would consider buying one that had shoebox accounts (unless I bought the business at a bargain price!) 


Pam Pitt answered this question

Johnny Li
Johnny Li, Director at Naive and Young

Asked this question - Accounting

Which part of my online business income is or isn't taxable?

When you say, what is taxable and what isn't...do you mean which things that you buy and sell have GST tax on them?  Or do you mean what things do you declare to the ATO for your annual profit?


I will assume that you mean what goes into calculating your profit and loss.  Your profit is the business income less the business expenses.  The ATO will assess your income tax on the amount of profit that your business earns.


Any earnings from a business are incomes and are declared.  So if the business earns interest, charges out rent to a tenant, earns dividends from share holdings, sells stock, sells labour - all of these are incomes and part of your profit.  


The business costs are the expenses.  Generally, anything that the business uses to earn an income that gets used up in the course of a year are the expenses.  So examples of costs are rents charged to the business  by a landlord, bank charges, costs of stationery, running costs of motor vehicles used by a business, the cost of stock sold, wages paid to employees, superannuation and so on.


Some of my clients think that loan repayments are costs - no they are not.  Loans are amounts that you owe or liabilities.  The repayment of loans are reductions in liabilities.  Only the interest charged on the loan is an expense.


Payments of GST are not expenses.  When you collect the GST, you owe it to the government - it is not part of your earnings (eg if you charge $1100, $1000 is your earnings and $100 is owed to the government).  So when you pay GST, you are reducing your liabilities.


When you buy something that is going to bring long term benefits to the business, you are investing in assets.  Assets include motor vehicles, buildings, the amount of stock you are holding at the end of a financial period, debtors, cash, office equipment.  


Anything that is your private expenses does not go into your profit and loss.  If you use business money to pay for private expenses, then you have to call it drawings (assuming that you are a sole trader) and record it, but it does not affect your profit and loss.  From the income tax point of view, you and your business are separate entities, so you need to record any dealings between you and the business.  So if you put cash or other assets into the business, you record that as CAPITAL contributed, and if you take cash or other assets out, as I said, you record it as DRAWINGS.


You need to speak to your accountant for further help on this.  He/she will be able to explain further when purchase is an asset and when it is an expense.  There is another discussion on this website about "Does every small business need an accountant".  In this case you do.  


As to your question about putting money aside - yes, I think it is a very good idea until you build up your business cash flow.  You should keep a track of how much GST you owe, and keep that money in an interest earning account.  Your accountant can give you a better idea of what % of sales you should keep to pay your income tax and can tell you when you will need to pay your income tax.


Pam Pitt answered this question

Phil Khor
Phil Khor , Founder at

Asked this question - Accounting

What are the differences between various accounting software?



My cloud experiences are with MYOB AccountRight Live –
released November 2012 and Xero.  Both
are excellent products.



Xero is suitable for
smaller businesses – it doesn’t have the same functionality as MYOB AR Live but
does the core financials easily and well. It has a basic payroll built within
it.  Users love the look of the product  and the ease of use. Xero does require user-training,
but the company provides a number of
free webinars as well as fee-based webinars. The online support is also very
good. However, for more complex businesses, Xero relies on a number of 3rd
party products which can boost the monthly charge (eg there is no inventory
tracking in Xero).



MYOB AccountRight Live looks and acts like the non-cloud
product but also provides for live bank feeds. 
It has inventory, more advanced payroll and time billing, as well as the
same functionality as Xero.  One key
strength is that MYOB AR Live can be brought down onto the desktop as well as
being hosted in the cloud. Another
benefit is that users do not need to retrain in order to use the product if
they have previously used MYOB Accounting. There is 24/7 phone and online
support available. MYOB AR Live is a more suitable solution for businesses with
more complex requirements.   



No results found.

Pam Pitt answered this question

Anonymous

Asked this question - Accounting

Do I need to hire an accountant with a CPA?

I would say that it very much depends on the role that the client is looking to fill and the size and budget of the client's business.  What does "anonymous" want the accountant to do?  Is it a matter of a small business hiring someone to do bank reconciliations and run reports?  Or is it a large business requiring budgets and board reporting?  Or is it a matter of finding an external accountant to provide advice and tax reporting?

CPAs and CAs usually are expensive to hire, so you would want them to be filling a role that their qualifications justify.  You wouldn't want them in a role that a bookkeeper could perform.

Pam Pitt answered this question

Michael Reid CA
Michael Reid CA, Do All The Things! at Michael L Reid CA

Asked this question - Accounting

Do you think MYOB is the worst accounting package in the world?

Well, I can't quite comment on all the accounting software in the world!  But there is a very clear, unbiased assessment of MYOB, Xero, Quickbooks and Saasu on BusinessEEZ - I have accessed it through this link



http://veechicurtis.wordpress.com/2011/11/04/cloud-accounting-review-of-myob-quickbooks-xero-and-saasu/



as it is easy to navigate to the feature comparisons from this page.  Basically, it seems to be a case of horses for courses...different software suits different businesses.


Pam Pitt answered this question

Michael Reid CA
Michael Reid CA, Do All The Things! at Michael L Reid CA

Asked this question - Accounting

Do you think MYOB is the worst accounting package in the world?

My clients are bigger sized businesses with complex payroll and inventory.  They have mainly used MYOB accounting software for over 15 years, many with ERP and POS add ons.   Similar software packages haven't been able to offer the same functionality for my clients, and certainly not for the price.



I haven't pushed them into Cloud Accounting - their current MYOB software suits their business needs.  I think they would rate MYOB as the best software in the world.!!  I will continue to put new clients onto MYOB when they have more complex requirements, knowing that they can use the software locally but having the option to put it on the cloud when required.



I will give MYOB the same amount of time to sort out their cloud offering as Quickbooks required when it went to SQL.  


Pam Pitt answered this question

Johnny Li
Johnny Li, Director at Naive and Young

Asked this question - Accounting

Which part of my online business income is or isn't taxable?

Feel free to ask some more direct questions, if my answer was too general...


Pam Pitt answered this question

Robin Dickinson
Robin Dickinson, Owner at RAD International

Asked this question - Accounting

Is accounting software such as MYOB, Xero or Saasu an overkill?

Accounting software makes business EASIER for SMEs.



If you use accounting software, you know at any time:



1. how much you are owed by your clients, who is overdue and needs reminding



2. how much you owe your suppliers


3. what your cash flow is


4. how much you are earning


Plus you can


1. produce good looking invoices, email them instantly and get your cash in faster.


2. run reports to analyse your business (sales trends, inventory turnover, best sellers, best customers, check that your costs are under control) and compare prior period performance and predict future growth


3. run payroll accurately and produce all your end of year reporting painlessly


4. produce GST reports instantly


5. control your inventory


6. give your bookkeeper/accountant a file that will reduce their workload and enable them to help you without costing you a fortune.


And if I were looking to buy a business, there is NO way that I would consider buying one that had shoebox accounts (unless I bought the business at a bargain price!) 


Pam Pitt answered this question

Johnny Li
Johnny Li, Director at Naive and Young

Asked this question - Accounting

Which part of my online business income is or isn't taxable?

When you say, what is taxable and what isn't...do you mean which things that you buy and sell have GST tax on them?  Or do you mean what things do you declare to the ATO for your annual profit?


I will assume that you mean what goes into calculating your profit and loss.  Your profit is the business income less the business expenses.  The ATO will assess your income tax on the amount of profit that your business earns.


Any earnings from a business are incomes and are declared.  So if the business earns interest, charges out rent to a tenant, earns dividends from share holdings, sells stock, sells labour - all of these are incomes and part of your profit.  


The business costs are the expenses.  Generally, anything that the business uses to earn an income that gets used up in the course of a year are the expenses.  So examples of costs are rents charged to the business  by a landlord, bank charges, costs of stationery, running costs of motor vehicles used by a business, the cost of stock sold, wages paid to employees, superannuation and so on.


Some of my clients think that loan repayments are costs - no they are not.  Loans are amounts that you owe or liabilities.  The repayment of loans are reductions in liabilities.  Only the interest charged on the loan is an expense.


Payments of GST are not expenses.  When you collect the GST, you owe it to the government - it is not part of your earnings (eg if you charge $1100, $1000 is your earnings and $100 is owed to the government).  So when you pay GST, you are reducing your liabilities.


When you buy something that is going to bring long term benefits to the business, you are investing in assets.  Assets include motor vehicles, buildings, the amount of stock you are holding at the end of a financial period, debtors, cash, office equipment.  


Anything that is your private expenses does not go into your profit and loss.  If you use business money to pay for private expenses, then you have to call it drawings (assuming that you are a sole trader) and record it, but it does not affect your profit and loss.  From the income tax point of view, you and your business are separate entities, so you need to record any dealings between you and the business.  So if you put cash or other assets into the business, you record that as CAPITAL contributed, and if you take cash or other assets out, as I said, you record it as DRAWINGS.


You need to speak to your accountant for further help on this.  He/she will be able to explain further when purchase is an asset and when it is an expense.  There is another discussion on this website about "Does every small business need an accountant".  In this case you do.  


As to your question about putting money aside - yes, I think it is a very good idea until you build up your business cash flow.  You should keep a track of how much GST you owe, and keep that money in an interest earning account.  Your accountant can give you a better idea of what % of sales you should keep to pay your income tax and can tell you when you will need to pay your income tax.


Pam Pitt answered this question

Phil Khor
Phil Khor, Founder at

Asked this question - Accounting

What are the differences between various accounting software?



My cloud experiences are with MYOB AccountRight Live –
released November 2012 and Xero.  Both
are excellent products.



Xero is suitable for
smaller businesses – it doesn’t have the same functionality as MYOB AR Live but
does the core financials easily and well. It has a basic payroll built within
it.  Users love the look of the product  and the ease of use. Xero does require user-training,
but the company provides a number of
free webinars as well as fee-based webinars. The online support is also very
good. However, for more complex businesses, Xero relies on a number of 3rd
party products which can boost the monthly charge (eg there is no inventory
tracking in Xero).



MYOB AccountRight Live looks and acts like the non-cloud
product but also provides for live bank feeds. 
It has inventory, more advanced payroll and time billing, as well as the
same functionality as Xero.  One key
strength is that MYOB AR Live can be brought down onto the desktop as well as
being hosted in the cloud. Another
benefit is that users do not need to retrain in order to use the product if
they have previously used MYOB Accounting. There is 24/7 phone and online
support available. MYOB AR Live is a more suitable solution for businesses with
more complex requirements.   



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