I am putting in comparative balances and doing depreciation.
I am going off from the last accountant who used xero
The fixed asset report says 4927 of depreciation for the 2019 year
I have entered it and my fixed asset report matches but
when I come to his P&L it says depreciation is 3764
The only thing I could think of for the difference is personal use he does have 39% personal use for motor cars but the difference is not 39% for the depreciation.The difference is 1163
So I would like to know can I journal from depreciation in the P&L or whats the best way to match his so going forward is correct
It is to the value of 23% so I guess thats close but some how I have to allow for the personal use of depreciation in the P&L
That is not a question about Manager. It is either a question about your tax laws and local accounting standards, or an indication of a need to clarify what the previous accountant did.
yes I know its not a manager question but I thought seems as other people ask accounting questions on here and they get answered I might just ask and I was asking if you can do personal use of depreciation in manager . You are just so quick to pounce on me I actually hate coming on here to ask anything and am sometimes frightened as to what you will say to me.
This is a manager question xero has conversion balances for depreciation in the P&L as well as in the balance sheet does Manager
Manager has no dedicated personal conversion feature. Depending on the rules by which you are depreciating an asset, you might have to reduce acquisition cost, calculated periodic depreciation expense, or depreciation rate to account for personal use. Depending on your form of organization, there may also be no adjustment, with all impacts occurring on an owner’s personal tax return. A simple “personal use percentage” reduction might produce incorrect results for a given jurisdiction. More importantly, it might jeopardize proper maintenance of book value necessary to handle variable future circumstances. (It might, for example, become necessary to recapture prior depreciation deductions under unforeseen conditions.) Relying on an incompletely understood “checkbox” approach could lead users astray.
Never mind I put it in the p&L in an account called fixed asset depreciation personal use it sits under the other one so they both come to the balance of what the last accountant had, find a few funny thing in this set of accounts.Thank goodness they are all in the P&L really so dont roll over to the next year that I am doing
I agree with @Tut that a simple “personal use percentage” reduction for your private use depreciation might produce incorrect results.
If you operate your business in Australia as a sole trader then deducting private use based on a valid log book is acceptable.
If you operate through a company or trust you are required to pay Fringe Benefits Tax (FBT) on the private use based on FBT law, not income tax law . Alternatively, FBT may be reduced to nil by way of an employee contribution for the private use.
You should refer these technical issues to your accountant.
I am an accountant in New Zealand. I am not doing these accounts as yet I am just entering into the system last years accounts that have been filed not by me but the last accountant I intend to do the correct job going forward.There are a few wrong figures in the P&L but they do not roll over so it is just to really have in my system and to match what was filed .