JSS (Job Support Scheme) is a cash grant given by the government to offset part of the local employee wage costs during the outbreak of COVID-19.
If you are using MoneyWorks accounting software:
There are two income account types (Sales and Income) in MoneyWorks. The Sales account type is a trading income, whereas the Income account type is for capturing non-trading income such as interest income or cash grant received. The Income account (a.k.a. Other Income) presented after the gross profit of the Profit and Loss report (You can have a custom report if you prefer to change the default presentation).
Create an Income account and name it as JSS (or Job Support Scheme if you preferred). Then, use a receipt transaction to record the cash grant received from the government (IRAS), the entry debits the Bank account and credit the JJS income account.
if you are using QuickBooks accounting software:
QuickBooks uses the Income account type for trading income and Other Income account type for capturing non-trading income such as the interest income mentioned earlier. The Other Income presented at the bottom of the Profit and Loss report after the expenses.
Create JSS as an Other Income account type and use a Make Deposit feature or a General Journal to record the cash grant received, it debits the Bank and credits the JSS income account.
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Accrual is a provision made at the end of the financial year (or month-end closing) for the work done but not yet invoiced. The audit fee is an accrued expense which a provision has to make for the current year audit work, although the invoice will only receive on the following year.
You can use a General Journal to record an accrual, such as debit the audit fee (expense) and credit accrued expenses (current liabilities).
Prepayment is a payment made for future goods or services. General Insurance and maintenance contract is a prepaid expense. For example, your financial year-end is December, and you received a notice for insurance premium for insurance coverage from September to August next year. In this case, September to December is your current year insurance expense whereas January to August is a prepayment for the following year.
Assuming the insurance premium is $1,200, you can use a Purchase Invoice or Payment transaction (if there is no invoice received) to record it. Enter a General Journal in the current year to debit prepayment (current asset) and credit insurance expense ($800) for the premium from January to August next year. Then, reverse the General Journal on the following year to debit the insurance expense and credit prepayment.
Information from IRAS website
You should claim the input tax according to the date on Tax Invoice or Import Permit. Please consult your accountant on claiming of GST input tax which relates to accrual and prepayment.
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