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Calculating the tax adjustments

Trading stock

Calculating trading stock adjustments may be difficult. How widespread is the use of perpetual inventory systems? Can you envisage a way you could calculate your cost of goods sold on a more regular basis if you didn't have a perpetual inventory system? How else can the software support you with this adjustment? Can you think of ways we can simplify this adjustment for you?

Comments

Bruce Stone
Unless you have an accurate and up to date system, which is most unusual for small businesses adjustments for stock are usually by best guess.

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2 months ago
Jane Fitzgerald
As we a more seasonal adjusting provisional would work better on the GSt basis

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2 months ago
Julene
My cost of good sold doesn't change much from year to year, which would mean I could use a 'base-rate' calculation for provisional tax payments

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2 months ago
Andrew O'Donoghue
We have work in progress which we finalize at the end of each financial year. We could adjust to updating work in progress to job finished more regularly to confirm actual income.

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2 months ago
Alan Liddell
Not relevant to me

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2 months ago
Janise Nelson
This does not apply to me

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2 months ago
Karen Silk
Our trading stock is minimal and we do monthly stocktakes anyway so this would be easy.

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2 months ago
Christine Robinson
This doesn't apply to my situation so cannot comment

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2 months ago
john weston
Probably 99% of small businesses do not have a perpetual inventory system in place. So this would add considerable costs and time to the taxpayer. The work for the accountant would be huge.

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2 months ago
Hayley
having to calculate stock on hand on a regular basis could be extra work for a small business. normally (in our business at least) stock will be counted at a reorder point, and stocktake is counted again at year end for tax purposes. but having to tally up the value of stock on hand on a regular basis would be more work for a small business who may not have software that can easily do this. perhaps the tax on stock could be calculated at year end or biannually instead, and tax due would be paid in the form of a 'top up'.

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2 months ago
Christopher Smith
No t relevant to my business

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2 months ago
Joanna Lapish
I am happy to just continue using my excel spreadsheet. It won't be that much extra work than calculating GST payments. I would like to submit it every 2 months at the same time as GST.

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2 months ago
John Wilson
only a minor issue for me

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2 months ago
Mark Irwin
There would need to be a method for handling consignment stock. This stock is the property of the manufacturer till sold but has to be entered in our system so we can track and reorder it. This is not currently allowed for in MYOB.

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2 months ago
Marilyn Clare Pierson
I do not sell goods. I provide a service. The number of persons to whom I will provide a service in any one month, quarter or year is entirel;y unpredictable.

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2 months ago
Dale
Wouldn't affect us at all as we aren't an inventory holding business.

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2 months ago
Kelly Walker
We don't use perpetual inventory systems, so this would be harder for us. However we carry about the same amount of stock, with small increases at peak season. We could estimate our stock levels based on our stock spend in the previous month. All invoices for stock are marked as such, & they are not allocated to a job.

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2 months ago
John Penney
Our trading stock figures are way under the thresholds, so no issue for us.

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2 months ago
Geoff Langford
Not an issue for me

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2 months ago
Hector Urquhart
Not applicable

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2 months ago
Sandra Kraakman
The tax department issues a valuation of stock once a year in our business - this impacts hugely on the tax we owe or are refunded. I cannot see how we can pay provisional throughout the without being hit with a huge cost at the end of the year. We think it is better to have four evenly spread payments - then we can plan for them as we know when they are going to occur. Thought - are we just adverse to change? Is this change a good one for all? Does 'one size fit all'?

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2 months ago
Jan Booysen
I don't carry any stock in my business. Purchase of any equipment is for specific projects only, and are settled by my clients within a month.

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you agreed.
2 months ago
Kip T
We keep sales records and disposal records. I would envision using an estimate based on these figures during the year and making any adjustments/corrections at the end of the year.

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2 months ago
Margaret Baker
Hi, This will be a major issue - stock take end of year is the norm for small to medium companies.

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1 month ago
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