GST Changes & Your Accounting Software

GST is set to rise from 12.5% to 15% on 1 October, 2010. How will it affect accounting software packages that most small to medium business enterprises (SMEs) use to manage their business? It's time to start planning. Polson Higgs supports many accounting software packages.  We detail below what action (if any) needs to be taken with the main accounting applications we support around the GST change. Xero As Xero is a totally on-line solution delivered through an Internet browser, there are no required computer software upgrades.  Xero has advised that they will be making changes to the application for the GST changeover closer to the October deadline.  Users will be notified in the usual way with a notification box on login to the Xero system. MoneyWorks MoneyWorks has a convenient facility allowing a change in the GST rate using a specific Effective from date.  This means that the new GST rate can be entered now and it will automatically take effect from 1 October.  There will also be a free software update released closer to the time that will include changes to GST reporting that will be required.

BankLink BankLink also has a change GST rate facility using Other Functions, GST Setup.  The new GST rate can be entered now and it will automatically take effect from 1 October.  A free update will be available before October to change the GST 101 report. MYOB SME’s who are not using the most recent version of MYOB (AccountRight family v19) will need to upgrade to the latest version.  The main reason for this is the way that GST is calculated on the GST reports.  Staying with any version earlier means that GST reports calculated after 1 October 2010 will be incorrect and GST will have to be calculated manually for every return.  MYOB will be releasing a software upgrade closer to 1 October that will assist in managing the change.  It will create a new GST rate code, and update your existing Accounts List, Contacts & Items. It will also update outstanding orders and recurring transactions and contain a number of new reports that will effectively handle any adjustments to the GST 101 return that are required from the transition date. QuickBooks SME’s not using the current release, QuickBooks 2010/2011 range, will also need to upgrade.  This is due to the way QuickBooks produces GST reports and the way the software calculates GST.  Reckon New Zealand have not yet released the details of the patch and/or tool that will be issued to assist with the change but we are expecting this in the very near future. NB Older versions of QuickBooks than 2010/2011 will not function correctly with the change in GST rate. Accomplish CashManager SMEs using this software will need to upgrade to CashManager 2010.  This enables the new GST rate to be entered and refreshed within all areas of the software package easily. Cashmanager RURAL An upgrade to v4 will be required.  The GST rate change will need to be updated using the Setup Business function.  If the two monthly return spans 1 October (that is, 1 September to 31 October and so it has one month at 12.5% and the next month at 15%), these will need to be printed as two separate one month GST returns.  For a useful web article on the GST change, see the results of a survey by the General Manager of Accomplish software, Grant Hewson at http://nz.accomplishglobal.com/resources/gst-survey.html. This may also be a great time to review your existing accounting software....     * Does it provide the functionality that you need to run for your business?     * Are there features or functionality that it doesn’t have that you feel you would benefit from?   Please contact Donna Cameron or Tania Whitaker in our Dunedin office or Tim Moriarty in our Christchurch office to discuss your options. Related article: GST Rate Change - Questions and Answers This information has been prepared by Polson Higgs as a service to our clients. It is intended to highlight recent developments and issues, and should not be used as a basis for making decisions. We recommend you seek professional advice from us before taking action on any specific issue.   << Back to GST Change Articles   Last updated: 21st September 2010 | 10:36 am