The Fuel Accounting blog page

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!

A “Buyer Created Tax Invoice” (sometimes referred to in other countries as a “Recipient Created Tax Invoice” or “RCTI”) is an invoice for sales tax purposes that is created by the purchaser of the goods rather than the seller of the goods. This is common in many industries especially where the purchaser has to assess the quality, quantity or price of the goods after they are delivered.

Xero has a “secret” transaction type (two – in fact) that many users aren’t aware of, and those that do often mis-use. It’s called “Prepayment” and “Overpayment”. These transaction types are actually variations of the standard Spend/Receive Money bank transaction but they have very unique treatments.

IMPORTANT: This post is specific to Canada. If you are not a Canada business/taxpayer then it is probably not applicable to you. Xero just released a Canada-only update today!! They have enabled the cheque-writing tool (previously only in the US edition) for Canadian users. This is a great addition for us Canadians, given our banking systems complete lack direct payment functionality (we are so behind the times!).

Use Taxes are often reverse Sales Tax that businesses self-assess. This is common in US States and Canadian Provinces with PST (BC, SK & MB) which require businesses to self-assess Use Tax on out-of-state/province purchases. Xero goes a great job of managing Sales Tax we charge on our invoices, and even on Input Tax Credits for countries with a GST/VAT style tax.

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. Thinking about giving your staff a well-deserved Christmas Present of Bonus this year? Cash bonuses are always subject to PAYE and should be put through your standard payroll process.

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. So you have a retail outlet and are using Xero to manage your accounting. Great start. But in retail, you have a number of settlement issues. There are sales on account, customers may pay on account over the counter, EFTPOS (debit cards) and various credit cards may settle on different days and some settle gross and some settle net of commissions.