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Calculating the tax adjustments

Creditors

Identifying and quantifying creditors is an important adjustment for accounting income. Can this adjustment be carried out on a more regular basis during the year? What changes to your software would assist you with making this adjustment?

Comments

Jane Fitzgerald
Yes it could happen

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2 months ago
Julene
My creditor details and the amount paid are set when a contract for services is signed. This makes regular adjustment throughotr the year an easy calculation

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2 months ago
Alan Roberts
its done monthly

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2 months ago
Christopher Smith
Not difficult

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2 months ago
Kelly Walker
The data for this is already entered and reconciled every other day, so this should be as easy as creating the correct report with the details IRD require

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2 months ago
John Penney
Ah Hello? Bills come in, they get paid. What else is there?

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2 months ago
Paul Dunmore
The only creditor is myself; I sometimes purchase goods or services (laptop, Companies Office filing fees) with my personal credit card. This is recorded as an expense/asset with a corresponding creditors balance until the company gets around to paying me back.

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2 months ago
Graeme G
It can be done - but this would mean more admin for me.

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2 months ago
Margaret Baker
Hi Most clients find it onerous if small to imput creditors - so business are run on a cash basis throughout the year, until end of year where I request a list of payables to accrue. You have raised a valid issue that is going to impact alot of small businesses, where the time/cost of adding payables will be onerous to them. Their are systems that load payables automatically to Xero but they all cost, that cost being the replacement of an accounts payable clerk. One work around I use is to look at cash payments going through the bank the month following end of period and recognise those that are creditor payments via a reversing accrual journal. A software system could be configured to recognise payments in bank a/c month after end of month that match a list of creditor names and accrue this value then reverse it out again for the purposes of AIM.

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2 months ago
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