Bookkeepers R Us Pty Ltd Extract from POLICIES and PROCEDURES Manual 1 Company Details Bookkeepers R Us Pty Ltd, trading was Incorporated on Ist January 2013 as a business that provides bookkeeping services to small businesses, both In Australia and overseas. John Muir Is the Director of Bookkeeping Makes Cents owning 100% of the shares. 2 GST and BAS reporting The business has an ABN and Is registered for GST reporting GST quarterly on a CASH BASIS and reports PAYROLL monthly. Superannuaten monthly payments are made by 28th of the following month. Deductions are paid quarterly - by the 28th of the following month. A 3.75% PAYG Instalment Is pald quarterly. Income Tax returns are prepared on an Accrual Basis. A Fringe Benefits Tax [$1,500] Is paid quarterly on the use of the company car for private use by the director. A BAS Clearing A/c Is used by Bookkeepers R Us. At the end of each month the business assesses the amount of Tax Liabilities and records In their Cash Flow Analysis. Management ensure there are sufficient funds. The paper copy of the Business Activity and Instalment Activity Statement Is lodged. 3 Fixed Assets John Muir will be responsible for the purchase of assets. [Motor Vehicle Registration and Compulsory Third Party Insurance are recorded as expenses.] A file Is kept for each asset purchased. This file should Include the Tax Involce, warrantles, loan arrangements and any other documentation regarding the purchase. When sold, sale documentation should be added to the file. The business is not taking advantage of Small Business Income Tax concessions depreciation rules. 4 Errors and Discrepancies It Is essential that the books of the business are accurate and correct. Any discrepancies should be reviewed by John Muir. A file should be kept to document all changes In the MYOB data file. Where necessary, entries should not be deleted eg dishonoured cheque. The entry In MYOB should be reversed and re-entered If necessary. If an Incorrect Tax Code has been used In a previous BAS, a journal entry is recorded to correct this error.5 End of month Reconciliation A Bank Account Reconciliation Bank reconci lations are performed In MYOB at least once a month on the last day of the month to reconcile the accounting records against the bank statement. A number of transactions will appear on the Bank Statement which will have to be entered In the MYOB data file. B Accounts Receivable Reconciliation At the end of the month, a Receivables Reconciliation report Is printed and checked for accuracy. C Accounts Payable Reconciliation At the end of the month, a Payables Reconciliation report is printed and checked for accuracy. D GST Reconciliation The business accounts for GST on a Cash Basis. The following reports should be printed at the time of preparing the Business Activity Statement: Sales Summary with Tax, purchases Summary with Tax. The GST Collected balance In the Balance Sheet less the GST In the Sales Summary with Tax report should equal the amount of GST Collected to be reported on the BAS. The GST Pald balance In the Balance Sheet less the GST In the Purchases Summary with Tax report should equal the amount of GST Pald to be reported on the BAS. An adjustment will be made If required to report the correct amount owing. PAYROLL 6 Record keeping Requirements Bookkeepers R Us Pty Ltd keeps the following payroll Information In accordance with the ATO guidelines In "Business records you need to keep". the worker's name, address and contact numbers; copy of tax file number declaration; the date the worker commenced work with the employer; details of emergency contact and any medical conditions the business should be aware of whether the worker undertakes part-time or full-time work and whether they are engaged as a permanent, temporary or casual worker; If a penalty rate or loading must be pald for overtime hours actually worked, the number of overtime hours worked or the start and finish times of those hours; If the worker is a casual or Irregular part-time worker who is guaranteed a basic periodic rate of pay, the hours worked by that worker; the worker's rate of pay; the gross and net amounts pald and details of any deductions; hours worked by employees [does not apply to salarled employees];any allowances or loadings pald; leave accrued, leave taken and the balance of the leave from time to time; superannuateon fund name [on Super Choice form] and contribution details; the termination of a worker's employment, Including the name of the person who terminated the employment; how the termination took place (was the employment terminated by consent, by notice, summarily or In some other manner?) and date of termination; PAYG payment summaries; and a signed copy of the enterprise agreement. 7 Processing Payroll by 10:00am All employees will provide the Administrator with their Wednesday signed and completed timesheets for the previous week. [weekly ] It Is the employees' responsibility to ensure that they have completed and submitted the timesheet on time. After The Senlor Bookkeeper will check and approve the 10:00am timesheets. The Administrator will check that all the calculations are accurate before processing pays. The payroll Information Is entered In to MYOB. Employees are pald by electronic transfer as per the Enterprise Agreement 2012-2015. A payslip Is provided for each employee no later than 1 day after the normal pay day and the electronic banking payments record is printed and authorised by the manager before transfer funds being made before 5:00pm. Employee entitlements are updated on their leave entitlement records. End of The Payroll Summary Is used to reconcile MYOB payroll Month with the Profit and Loss and Balance Sheet. The Administrator will sign on the bottom of the report to confirm the reconciliation. Superannuaten payments are made to the appropriate Superannuaten Funds. The Payroll Summary Is used to report the activity on the Business Activity Statement. A copy of the reconciliation Is filed with the end of month payroll reports.8 Payroll enquiry guidelines The administrator can answer most enquiries using either Information In the Payroll records or the ATO website. The following guidelines must however be adhered to: Do not advise employees about the Medicare Levy, Superannuaten contributions surcharge, salary sacrifice or matters relating to non-residents, because these areas require specialist advice. Employees should consult their accountant or financial advisor. Never give personal Information such as address and telephone number to any person without the consent of the employee, this Is In breach of the Privacy Act. 9 Security Payroll records are kept for 7 years and are open to Inspection during the employer's business hours by Fair Work Ombudsman Inspector. The MYOB file and associated payroll Information Is backed up dally, one copy kept In the office safe and a second copy taken home by the Manager. All payroll records are stored In locked filing cabinets to protect privacy of Information