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Non software users

What tax adjustments should a manual system do?

Although the use of software is increasing, there will be taxpayers who prefer to use their own software or not to use software at all, for example, a spreadsheet or manual cashbook.  

As actual trading results are used to calculate the provisional tax payment, minimum accounting requirements are necessary for taxpayers using manual systems. We expect a standard of reasonable care to be taken when calculating provisional tax. At a minimum, to use AIM we expect a taxpayer to maintain a double entry accounting system with period end adjustments and reconcile this to a bank account  

What would  you consider acceptable as tax adjustments? Would a spreadsheet or manual cashbook would be suitable (as long as there is some reconciliation between the business bank account and the accounting records)?

Comments

Amanda R
Yes, I currently use spreadsheets for all my accounts and would like to continue doing that.

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2 months ago
John Wilson
Yes this is a good idea. My system is manual. I would rather calculate payments roughly from my GST returns and then make reasonable adjustments at the end of the year on my actual accounting income.

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2 months ago
Charles Brink
We currently use spreadsheets that track all bank movements and any year adjustments are then reflected on that spreadsheet as adjustments. It works just fine, and wouldn't need any upgrades.

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2 months ago
Margaret Baker
Hi I think the manual system clients should use something like ratio basis GST rather than AIM. Manual systems are inefficient, provide poor visibility throughout the year for a client. Unfortunately cost of software means this is often the only viable option. Advise requiring software providers who are provisioning for AIM to provide a cutdown version for this type of client to transition them to AIM.

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2 months ago
Talita Visser
I only use my own spreadsheet and this has worked fine for me. I would also prefer to pay tax based on each month's income instead of provisional tax in 3 instalments.

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2 months ago
Ross Williamson
IRD as far as I am concerned to need to work in with Acclaim, Cash Book Lite, I use this and need it to work on tax calaculations for me, currently it works out my two monthly GST. Tax for me can not be based on my GST payments as a lot of my earnings are zero rated of GST.

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2 months ago
Raewyn
My spreadsheets allow me to work quickly and with little effort because we have an extremely streamlined business. We've made sure everything is automatically calculated based on tax requirements from the point of sale through to paying the various taxes. It requires very little for me to attend to, I don't need to purchase accounting software as I'm already well set up, ready to go and am a partially trained accountant so know what we need to be providing clearly and quickly.

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2 months ago
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