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Calculating the tax adjustments

Treatment of Accruals during the year

Knowing how to treat your accruals during the year is an important adjustment for accounting income and it will be crucial to have commonality in this area. What difficulties do you foresee with a requirement to adjust for your accruals on a more regular basis during the year? What changes to your software would assist you with making this adjustment?

Comments

Christine Robinson
N/A

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2 months ago
Christopher Smith
My accountant would need to advise on this one

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2 months ago
peter morice
no problem here

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2 months ago
Mark Irwin
I'm not sure how this would best be done. We currently leave this to our accountant. I guess if we can make the necessary journal adjustments during the year it is not such a big thing.

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2 months ago
Kelly Walker
we leave this to our accountant too.

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2 months ago
John Penney
I have no idea what this means, so I guess it's not relevant to us.

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2 months ago
CraigO
If accruals are required throughout the year then I'd rather stick with the current provisional tax system. We pay GST on a cash flow basis. Having to pay tax on an accrual basis would add significant admin time and would increase the cash flow headache from slow payers; I won't have received payment but will be taxed on it. Accruals generally don't work in favour of small businesses. We don't have any power to negotiate extended terms of trade with our suplliers but have to accept extended terms or slow payment from our customers. With the current tax system we put an extra effort in at year end to try and ensure our slow paying customers are up-to-date but would hate having to do that every month. Best just to leave accruals to the terminal tax calculation.

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you agreed.
2 months ago
Kim Munford
This is a concern for me also. I'm not convinced that a lot of the replies to your survey have considered the difference of an accurals v payment basis

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2 months ago
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