Assignment Task

Instructions

This assessment task involves recording and reporting financial information for a small West Australian organization, LouLou Ltd, using MYOB accounting software. This is an individual assignment.

Introduction

LouLou Ltd is a small sole proprietorship that sells catering packaging products to various businesses, including cafes, take-aways, and restaurants. The company operates from a retail outlet incorporating a warehouse and office in Murdoch, WA. Historically, LouLou Ltd has recorded all accounting transactions manually using basic Excel spreadsheets, but now, the company has decided to implement MYOB Software. You have been employed to manage this software implementation.

Section

1. Setting up the Business Account in MYOB Business Pro

   MYOB Business Pro is a cloud-based system, allowing you to log in and out to continue working on the project as long as you have internet access.

   • Business Details: Open the ‘Business Details’ page to update your business information. Access this by clicking on the business name at the top-right of the screen to open account settings, then select ‘Business Details’.

   • GST Settings: Stay on this page and click on the GST Settings Tab. Choose YES if you want your invoice to state “Tax Invoice” (since the business is registered for GST and reports quarterly) or NO if it should simply state “Invoice”.

   • Report Settings: Select your business settings and user preferences for reporting here. Note that while generating reports, you can change these options as needed. Access this via the business name at the top-right of the screen, then open the report settings.

2. Chart of Accounts, Tax Codes, and Opening Balances

   • View the Chart of Accounts: Click on the Accounting Tab and then the Chart of Accounts to view and edit your business’s chart of accounts. Pay attention to account numbers, names, and types. Typically, assets start with ‘1’; liabilities with ‘2’, and so on.

   • Tax Codes: Ensure the correct tax codes are associated with each account. Review the standard chart to verify.

   • Customise the Chart of Accounts: Use the highlighted functions to edit and add accounts. To delete an account, click into the account name and then click Delete at the bottom left.

   • Enter Opening Balances: After customizing the chart of accounts, enter the opening balances using the ‘Edit Accounts’ function, referencing the balance sheet provided below.

3. Sales Items

   Recording transactions and events in MYOB differs from manual bookkeeping. Transactions are recorded by entering information from source documents (e.g., invoices, receipts, timesheets), and the system automatically creates journal entries linking the input data to the ledger accounts.