Posted onJuly 14, 2022|Comments Off on Submit GST Form 5 to IRAS from the MoneyWorks accounting system digitally
Connect to IRAS is a new feature to allow the accountant to submit the GST from the MoneyWorks accounting system digitally. It is part of the IRAS Road Map 2.0 compliance.
You will still be doing the usual GST processes (i.e. print and check the GST reports and finalise the GST).
But, instead of logging into the IRAS tax portal to submit the GST manually, you can submit it via the Connect to IRAS feature.
How does it work?
From the Command menu, click the Connect to IRAS, and MoneyWorks will pull the finalised GST data into Form 5. Then, you check the data, update the statistical information such as Revenue (which you can pick up from the income statement), and click the submit button to connect to the IRAS web portal. You will be prompt to log in with your Singpass as part of the security measure. That’s it. You will get an acknowledgement once data has successfully transferred.
Connect to IRAS is a new feature for Singapore MoneyWorks users. It helps eliminate errors in manual entry of GST form 5 in the IRAS tax portal, another step towards digital transformation and improving productivity.
Posted onSeptember 9, 2020|Comments Off on What do you need to know when switching from Reckon Accounts to Intuit QuickBooks Desktop?
Reckon Accounts formerly known as Reckon QuickBooks or QuickBooks Asia; it’s a desktop accounting software with thousands of users in Singapore and Malaysia. There are some differences in GST between Reckon and Intuit QuickBooks; the user should take note of when switching over to Intuit QuickBooks Desktop. These include setting up of GST, recording a general journal with GST, and GST reporting.
Setting up of GST in Intuit QuickBooks Desktop
Set up the GST account after you have turned on the GST feature from the Preferences. The choice is yours, whether to have:
a single GST account for both input and output GST,
a current asset account for the input GST and current liability for output GST, or
a GST control account with subaccounts for both input and output GST, which all three GST accounts are current liabilities.
I prefer the last method, to have a control account and subaccounts for input and output, it allows me to glance the net GST payable or receivable from the Balance Sheet instead of relying on the GST report.
Next, create a vendor and set it as a sales tax agency. Name the vendor as Comptroller of GST and link GST output account to the track tax on sales field, and GST input to the track tax on purchases.
Create the tax item from the items list. Every tax item consists of a tax rate, such as 0% or 7%. Then, link the Comptroller of GST to the Tax Agency field and set the Sales Tax Return field to either Tax on Purchase or Tax on Sales.
Example, create two tax items for the standard-rated GST, one for the output and another for the input:
7P – for standard-rated 7% GST Input
7S – for standard-rated 7% GST Output
The GST item code, 7P and 7S, is for illustration; you can create your preferred code such SR7 for standard-rated 7% GST Output and TX7 for standard-rated 7% GST Input.
The sales invoice, sales receipt, write cheque transaction uses tax code on each detail line (either item or GL account). Each tax code linked to either one or two tax item depending on the nature of the GST code. For example, standard-rated 7% GST uses in both sales and purchase; then, linked 7P (which we have created earlier) to the tax item for purchase and the 7S to the tax item for sales field. On the other hand, if you only use Deem Supplies tax code in rental income (GST output); then, you only need to set the Deem Supplies tax item to the tax item on sales field.
How does it work?
When you enter a bill with a standard-rated GST code:
It links to the tax item for purchases set in the tax code.
The tax item, which has a tax agency tagged, update the tax on purchases section of the GST report.
Then, at the same time, the tax amount updates the GST Input account, which has set up in the tax agency profile, of the Balance Sheet.
A general journal is for adjusting the business accounts, such as recording of depreciation or accruals into the system. GST item can only tag with the GST Input or GST Output account in General Journal, but not with other P&L or Balance Sheet accounts.
Consider using Enter Bill or Write Cheque transaction instead of a General Journal if you are trying to record an expense with GST.
File Tax Return
The GST report consists of sales, purchases, tax on sales (output), and tax on purchases (input). Export to Microsoft Excel feature is available in QuickBooks Desktop for you to filter, sort, and analyse before filing GST Form 5 via IRAS website.
Intuit QuickBooks Desktop requires to process GST (by clicking the File Tax Return button at the top of the GST report). The process transfers the GST amount in the Input and output account to the accounts receivable or payable.
You can view the GST payable from the AP ageing report or receivable from the AR ageing report after you have done the File Tax Return process. Then, do a Pay Bill when GST is due for payment, or Receive Payment transaction when you have received the refund from the Comptroller of GST.
There are two methods of computing the GST on Tax Invoice when the invoice contains more than one item with the standard rated supplies. The line item method, which commonly used in accounting software; this method computes the GST on each line item and then sums up the GST amount. The second is a subtotal method, which calculates GST based on the total payable.
Assuming you sold 9 pieces of product A at $13.98 each and 7 pieces of product B at $17.38 each.
Method one (the line item method):
9 x Product A @$13.98 = $125.82 x 7% GST = $8.80
7 x Product B @$17.38 = $121.66 x 7% GST = $8.51
Total GST = $17.31
Method two (Subtotal method):
9 x Product A @$13.98 = $125.82
7 x Product B @$17.38 = $121.66
7% GST = $247.48 x 7% = $17.32
Both methods of computing the total GST are acceptable so long as you apply the chosen method consistently.
Due to a different method used or rounding between two systems, the GST amount on supplier invoice may differ from your entry. You need to set to show tax column from the MoneyWorks Document Preferences to allow amending the GST amount on Purchase Invoice transaction. A warning message may prompt when printing the GST report, and the report highlights those transactions in question.