The Fuel Accounting blog page

If you’re a Canadian or Kiwi business and you work with customers in the US it probably won’t be long until someone asks you to complete a version of form W-8. In fact, they all should ask you to complete it, but many don’t know of it’s existence. The form is part of the wide-reaching U.S. FACTA requirements designed to help detect money-laundering and terrorism financing, but also imposes steep withholding taxes on non-US businesses. 

If you’ve just started working with Xero, it is normal to make a few mistakes while you’re learning. We see mistakes that are quite common – and unfortunately costly – so you should be aware of them if you want to get the most out of Xero’s powerful cloud accounting system. Not connecting all the bank and credit card accounts dedicated for your business.

Yes you do.  If your business is incorporated then you are required to have at least one meeting a year of your shareholders. It’s typically called the Annual General Meeting (AGM) and it has a few things that you have to do at it: Receive the financial statements of the corporation, signed by the Directors,
Appoint an auditor, or decide not to appoint an auditor for the coming year, Approval of the minutes of the last shareholders meeting (if applicable).

IMPORTANT: This post is specific to Canada. If you are not a Canada business/taxpayer then it is probably not applicable to you. If you have a corporation registered Federally (under the Canada Business Corporations Act) rather than Provincially then you need to file an Annual Return with Corporations Canada (a division of Innovation, Science and Economic Development Canada). 

We know small business owners are at varying points on the technology spectrum. Some have embraced technology to operationalize a majority of their operations while others have continued to manage with minimal technology intervention for a variety of reasons. The onset of the COVID-19 pandemic is altering the business landscape and is accelerating how businesses leverage technology to provide services and or products to clients.

So let’s start by looking at these two options at the most fundamental level: Dividends are a return on equity. They are paid to shareholders as a distribution of profit. Salary is a return on labour. It is paid to employees for their time and expertise contribution to the business.

IMPORTANT: This post is specific to Canada. If you are not a Canada business/taxpayer then it is probably not applicable to you. Many Canadians support non-profit organisations through Charitable Contributions. But as a business owner, which is the most tax-efficient way to donate? Through your corporation or personally?

IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you. Last month I wrote about things that you should do BEFORE 31 March that could save you time or tax. This month I will highlight things that you should be doing now to make the process of creating your year-end accounts easier.

Fuel Accounting is pleased to announce that its founder, Peter McCarroll, was awarded Xero’s “Most Valuable Professional” Award at XeroCon 2013 (Auckland). Peter’s award was for his contribution to the Xero Community where advisors and Xero staff respond to question from users all over the world. Peter is the single-most frequent commenter outside Xero staff, providing valuable tips and advice to Xero users everywhere.

One of the allures of cloud accounting is that it makes keeping your accounting records more accessible. Entering payables, managing receivables, and reconciling your bank account are now effortless. It does make you wonder whether you even need an accountant or bookkeeper at all these days!