Excellent video. Besides you should add a video where the user can see the whole process (Step #1. Record the the Asset purchase using a simple supplier invoice. Step #2 Set up the Asset from the draft section and finally STep #3 Run the Depreciation.
If you deducted the full value of an asset claimed as a capital allowance qualifying for annual investment allowance then presumably you can't use Xero fixed asset depreciation because it posts transactions that would be offset against profit, thus offsetting twice (over time) against your tax bill?
Hi Alex, Unfortunately this is where accountants make life complicated. There is accounting profit and then there is taxable profit and they are two different things. Xero deals with accounting profit which is calculated after depreciation. Taxable profit is calculated after adding back depreciation and deducting capital allowances which may be 100%.
@@XUSolutions Thanks Marion! I can see that exactly that is being done for taxable profit calcs now! So which profit can dividends safely be drawn from: accounting profit (after taxation) or taxable profit (after taxation)? Or is the rule, "from available funds" but "be careful"?
Hi I need to to how to make an entry for the below in xero. Can you do a video on that. Jan 1 advance paid to supplier 4000 by cash Jan 15 invoice submitted by the customer 9000 Feb 15 balance payment paid 5000 by Cheque Please advise
Hi Ajay, it's entirely up to you whether you subscribe or not. If you want to see my new videos, then subscribing is a good idea. And of course I would be happy if you subscribe :-)
@@ajaypujara382 sorry if you have a problem Ajay. I don't understand why that would be and it's not something I can fix. I've never heard of this issue before
Very helpful thank you for making this video !
I am so happy right now - great videos
If you’re happy, then I’m happy!
Ma'm, In my version of xero not showing the run depreciation , please help
Excellent video. Besides you should add a video where the user can see the whole process (Step #1. Record the the Asset purchase using a simple supplier invoice. Step #2 Set up the Asset from the draft section and finally STep #3 Run the Depreciation.
Thanks for the suggestion, I will add this to my list of future videos.
Helpful video but I cant find the ‘run depreciation’ tab.
If you deducted the full value of an asset claimed as a capital allowance qualifying for annual investment allowance then presumably you can't use Xero fixed asset depreciation because it posts transactions that would be offset against profit, thus offsetting twice (over time) against your tax bill?
Hi Alex,
Unfortunately this is where accountants make life complicated. There is accounting profit and then there is taxable profit and they are two different things. Xero deals with accounting profit which is calculated after depreciation. Taxable profit is calculated after adding back depreciation and deducting capital allowances which may be 100%.
@@XUSolutions Thanks Marion! I can see that exactly that is being done for taxable profit calcs now! So which profit can dividends safely be drawn from: accounting profit (after taxation) or taxable profit (after taxation)? Or is the rule, "from available funds" but "be careful"?
@@alexdilley ha, you're testing my accounting brain now! The amount available for dividend is accounting profit less tax charge.
Hi
I need to to how to make an entry for the below in xero. Can you do a video on that.
Jan 1 advance paid to supplier 4000 by cash
Jan 15 invoice submitted by the customer 9000
Feb 15 balance payment paid 5000 by Cheque
Please advise
Was it business or personal cash? If business cash, how do you show this in Xero - eg do you have a bank account set up for cash?
Good info Madam
you're welcome
Why everytime I have to subscribe?
Hi Ajay, it's entirely up to you whether you subscribe or not. If you want to see my new videos, then subscribing is a good idea. And of course I would be happy if you subscribe :-)
Problem every video I have to subscribe there is technical problem please solve
@@ajaypujara382 sorry if you have a problem Ajay. I don't understand why that would be and it's not something I can fix. I've never heard of this issue before
Thank you, very helpful as always!
Glad it was helpful!