About Linking to the General Ledger

23/04/2024
Knowledge

How To

LEAP specialises in providing specific legal accounting solutions for:

matter-based time recording
accurate recording of disbursements and cost recoveries
matter-based office transactions, including invoices and receipts
trust accounting.

MYOB and Xero's general ledger accounting solutions integrate with LEAP providing the tools to operate your business in terms of:

general ledger transactions
GST reporting
financial reporting
office bank reconciliation
office/firm-based expenses
payroll.

LEAP utilises the general ledger or chart of accounts from MYOB or Xero. When a receipt or payment is entered into LEAP, LEAP send this information to MYOB or Xero to be in included in the office bank reconciliations, and to be classed as income or expense on the chart of accounts. The information is sent as general journals to MYOB or Xero which only contains financial information. How journals are sent depends on how you're reporting your GST Returns. No detailed information of clients, invoices or staff members is sent to MYOB or Xero.

There are 2 ways of doing your accounting:

Invoice (non-payments) Accounting Basis

If you use this accounting method, you'll be reporting on what you have invoiced regardless of whether the monies have been received from the client. This allows you more control over the accounting procedure - such as defining security groups who can modify and/or finalise invoices. LEAP will post a journal to MYOB or Xero as soon as the invoice is finalised. This is your income.

Accrual Accounting

Payments Accounting Basis

When reporting to the IRD using a payments accounting basis, you'll only be reporting on what you have received. This is the standard method for companies with an annual turnover of less than $1,000,000. Invoices won't be exported from LEAP to MYOB or Xero using a payments accounting basis. Only receipts and payments will be exported, i.e., when you enter a transaction which directly affects your bank account. You'll be able to modify invoices up to and after you've receipted them. The General Ledger Link screen provides different options in relation to the general ledger transactions that can be exported to MYOB or Xero:

the default view of the screen shows those transactions that haven't been exported or that have generated an error in an attempt to export to MYOB or Xero
an option to manually export the outstanding journals to MYOB or Xero
an option to view transactions with other statuses, i.e., Hold, Error, Warning, Success
an option to view transactions for specific periods or a date range
right-click menu options to open a journal entry (if there's an error), set the journal as not exported, hold/unhold the journal.

Cash Accounting Basis

Last Modified Date

23/04/2024 1:32 pm

Title

About Linking to the General Ledger

URL Name

About-Linking-to-the-General-Ledger-NZ

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