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Calculating the tax adjustments

Depreciation and amortisation

Depreciation is typically only run at the end of the year, despite all the information required to run it being available during the year. Often this is calculated at year end by an external tax advisor. Are you able to enter this yourself? What changes to your software would assist you with making this adjustment? What can we do to make this adjustment simple for you?

Comments

Janine Clemons
As before, I'd love to do this myself. Inbuilt depreciation accounts for assets would be very helpful.

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2 months ago
Jane Fitzgerald
If the business package we operate were to apply this we would adjust throughout the year.

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2 months ago
Christine Robinson
It seems possible

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2 months ago
Christopher Smith
Accountant does this I think IRD would has to devise something for this

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2 months ago
John W
just divide last years by 6 unless there are large new items

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2 months ago
Mark Irwin
It would have to be easily entered, eg purchase date, value, depreciation type and rate, sale date. If this is all there is to it and info on the correct depreciation rate is easy to find then all should be well.

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2 months ago
Helen Gilbert
This is usually done annually by my adviser and I'd prefer to keep it as part of the annual wash-up.

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2 months ago
Dale
The data should already be in Xero, I would think it shouldn't be a biggie to link purchases and sales of depreciation items directly.

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2 months ago
John Penney
Easy enough.

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2 months ago
Sandra Kraakman
I have been simplifying my systems and using our accountants more as they have the necessary knowledge. This would involve purchasing new software and everything else that involves - expenses in dollar terms as well as time that we do not have - or need.

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2 months ago
Paul Dunmore
As long as the rules are clear, I could make any required calculation monthly.

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2 months ago
Graeme G
I leave this to my accountant so it would mean extra cost for me if it were done more regularly.

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2 months ago
Jan Booysen
I don't make that many purchases during a year, and since it works according to a process, would just need to deduct that on a 2-monthly basis when tax is due.

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2 months ago
Maree
I wonder if it would be easier to have a manual entry system with IRD from the business' own calculations, rather than having to have software which does all these calculations: an accountant could give rough estimates for depreciation etc based on the previous year to the client and then do a proper depreciation calculation at year end and adjust what had already been allowed for?

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2 months ago
Margaret Baker
Hi, The FA area in Xero is only visible to advisors. Reason for this is that alot of clients code incorrectly < $500 assets into Office expenses at cost. Before running depreciation their are often these to remove and others to register. At worst if depreciation were run these non registered items would be omitted from the depn until year end.

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1 month ago
Brooke
We aren't using software and get an accountant to do the year end tax. In a previous comment I said the expense of software wasn't warranted but working out the depreciation is one reason we use an accountant. If software could cover off on this, inclusion of home office expenses etc then it would start to look more attractive. From what I've seen of MYOB (for example) time would be saved on book keeping and less chance of errors in spreadsheeting. Maybe less time needed by an accountant and thus a reduced fee too (??)

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1 month ago
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