Setting Up accounts for a newly incorporated association transitioning from an unincorporated assocation
Hi Guys
We are using AccoutRight Plus. We have been operating as an unincorporated association, but on 16th of February became an incorporated not for profit association. Our consititution (rules) say all assets and liabilities have to be transferred from the unincorporated association to the newly incorporated association. They are treated as two separate entitites. I need to be able to show a clear division in the accounts from the time of incorporation so need some advice on how I set up the newly incorporated association in MYOB and transfer everything.
The unincorporated association's financial year closes on 30th June
The newly incorporated association has a different financial year. It's from 1st Jan - 31st Dec
Do I start a new company file in MYOB for the new incorporated association?
If so do I carry across opening balances from the unincorporated association's MYOB balance sheet?
If so do I do this as at the date before the conversion date ie 15th February?
We've been busy planning and holding a huge event so have only now had the opportunity to address all the accounting issues. Because the new incorporated association hasn't set up their MYOB file yet or bank account
everythings been paid through the unincorporated acompany.
I'm assuming an expense or loan account should be set up in the unincorporated associations MYOB account to record any payments or receipts made on behalf of the new association, until everything is finalised.
We've applied for an ABN and TFN with the ATO but haven't received it as yet and can't start up the new bank account until we have these, hence my query. Just want to ensure we're on top of everything and recording everything correctly. If you can offer any advice or help it would be greatly appreciated.
Many thanks
Hi Stonestreet
From an AccountRight point of view, you can enter opening balances for a company file through Setup>>Balances. You would be able to enter the account, customer, supplier and job opening balances through this method. Typically, you would be entering the same balances as of the first day of the conversion month (Setup>>Company Information -- Conversion month).
In your case, it sounds like it is recommended that you speaking to your accounting advisor to the best course of action for your needs. However, it is likely a case of entering the balances as of February then re-entering any transactions in the company file that will bring that file up to date i.e. February to June transactions. The other option is to draw a line in the sand and enter the opening balances as of July and use that file going forward.
