Business & Tax Forms

Hot Tips

Hot Tips

Is your business up to date?

Download this PDF here and tick off the things you've done. Mark the things you need.

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Look Through Company
Information (LTC)

Check to see if a LTC structured company is right for you. Download LTC info.

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Measuring the Cost of
Discounting

Download this table which indicates the increase in sales that are required to compensate for a price discounting policy.

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Rates and Thresholds

Download this form for handy links to ACC, ACC Earners Levy, Minimum Wages, Student Allowance, Family Assistance, UOMI, FBT, Mileage Rates, Employee Loans, Late Payment Penalties, Income tax rates.

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Xero Tips and Tricks

How do clients capture expenses they paid out of a personal bank account?

Some Xero customers will pay business expenses out of their personal credit card or bank accounts. Capturing these costs by calculation and journal entry can add time to their job but with Xero we can be more efficient.

To capture these expenses our clients can use the Expense claim feature in Xero. For an added advantage, download the Xero App to your client which is available on iOS and Android.

Users can take a picture of the receipt/tax invoice and create a “receipt”, putting the day of the purchase, supplier name, what the purchase was for and the correct account code.

Next assign the bank account that the expense was paid out of. The user should choose “I want to be repaid”. This will ensure that the transaction is created as an “Expense Claim”.

If they have lots of these, you can create them as draft then come back into Xero, approve them all together and then make a bank transaction to reimburse the personal credit card/bank account.

Ideally, you’ll keep business affairs separate from private affairs but this is a feature that we can use to make capturing business transactions paid privately in a more efficient manner.

For more info, click this link and check out the video:

More information

How do clients capture expenses they paid out of a personal bank account?

Bank rules are an excellent feature in Xero which allows bank transactions to be pre-coded based on some prescribed conditions such as Payee or condition. This can save us time when we complete our client’s annual accounts but most importantly it saves the client time.

Here are some tips when using bank rules in Xero:

  • To create a rule quickly go to the normal reconciliation page (Reconcile ## items), and above the transaction you would like a bank rule for select “Create rule”. Alternatively, you can create a rule by going to Cash coding, selecting the down arrow on the same bank statement line you would like a rule for and selecting create rule.
  • When inputting a condition, make sure you select “contains” rather than the standard “equals”. Sometimes bank statement lines contain unnecessary text or numbers which is why the bank rule may not match correctly if you select equals.
  • You can create a bank rule for transactions with multiple suppliers that need to be coded to one account. To do this, apply multiple conditions (e.g. the supplier’s name as it appears on the bank statement line) and change the “All” to “Any” on step 1. Doing this will reduce the number of bank rules.
  • When creating a bank rule for transactions with multiple suppliers, use “the Payee from the bank” or “Entered during reconciliation” as the Contact.
  • You can force match a bank rule to a transaction in the Cash coding screen by ticking the relevant transaction(s), selecting apply rule and choosing the appropriate bank rule.
  • You can use bank rules for transactions that need to be split by a common ratio. This is useful for transactions such as net interest, scheduler payments, business/private portions and home office.
  • Don’t use bank rules for transactions that need to be matched to an invoice or bill in Xero. This is very important.

For more information and a helpful video, please click the following link:

More information

Contact us for some proactive business advice today

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