GST CHANGES IN SOFTWARE PACKAGES
(Xero, MYOB, Cashmanager)
In this year’s budget, the Government announced an overhaul to the tax system. For most Kiwi businesses this will mean at least some degree of change, in the lead up to 1st of October. Please note the tax changes will relate to your accounting system and payroll systems.
XERO
Xero will do most of the work for you and it’s free.
1. Xero have created the new system tax rate, and will make it a default on the 1st of October.
2. GST rate change adjustment will be available before October. If you file GST on a payment basis, you may be required to include a ‘GST Return Change Adjustment’ for the period ending 30th September. Please contact your accountant if you need assistance.
3. Repeated invoices will be updated at midnight on the 30th of September.
4. Adjusting for late 12.5% claims of GST will be available early November. Xero will provide information that allows you to identify these transactions and include them in adjustment calculations.
5. GST Transitional Returns – for clients with a GST period that spans the date of the rate change, you will be required to submit a GST Transitional Report. In Xero simply run two standard returns, one for 30th September and one for 31st October and combine on the form provided by the IRD.
One thing clients will need to do is PUBLISH the GST returns. For Xero to correctly calculate the adjustments, as you process your remaining 12.5% transactions, it is important that you publish all your GST Returns from now on. You should publish once you've run your return and are happy with the results: simply press the Publish button. It's as easy as that.
For further details information please visit the Xero website http://help.xero.com/nz/#GSTandYou
MYOB
Clients who purchase a new MYOB product, or upgrade their current solution, will automatically be covered for any required updates. You’ll receive an email to download the upgrade. If the download doesn’t work, contact MYOB and they can send a CD (there may be a charge for the CD). The release (v19.5) is expected out early September.
The cost of the upgrade will depend on the product. For example:
MYOB AccountRight Standard is $229 plus GST
MYOB AccountRight Premier is $399 plus GST (no payroll included)
MYOB AccountRight Premier with payroll is $470 plus GST
MYOB Payroll Standalone is $199 plus GST
The upgrade will consist of a new GST Return, due to the change in the GST calculation, a GST wizard that updates the GST tax code, Accounts, Cards, Items and Recurring transactions. It can also update the base price on items if you use the GST inclusive.
Please make sure you read all literature from MYOB in the coming months. We recommend you look at the website www.myob.co.nz/taxchanges.
CASHMANAGER
Cashmanager have released an update to Cashmanager v2010, which is now the current release on their website. Visit the website to obtain the latest release www.accomplish.co.nz.
The upgrade will give you the option to universally change the GST rate on all account codes, instead of individually editing the codes. The GST rate can be changed at Setup, Options, GST Setup. Enter the new rate and a message will appear to update the rate. You would update the rate after you’ve finished entering data for September 2010.
For the period between August and September the costs of upgrading is $250 plus GST for clients that want to update but not rejoin support. The cost of support is as follows:
Cashmanager Standard $304 plus GST
Cashmanager Plus $336 plus GST
If you don’t use any of the above accounting systems, please contact the software company before the 1st of October to find out your options.
Disclaimer Information contained within this document is of a general nature and does not constitute advice. Readers are cautioned not to act or reply on it without first seeking professional advice. The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
