CAPTAINS LOG: THE FIRSTMATE BUSINESS ACCOUNTING BLOG
Keep up to date with Firstmate and the Xero accounting world through our Business Accounting Blog. We'll let you know important dates, notable changes and other bits and pieces worth knowing to keep your business running smoothly.
Join us on facebook14.05.2014
If you haven’t already head over to facebook and like our page.
This week we have shared a video giving an overview of the powerful job management Xero add-on GeoOp.
If you are in the trades you definitely need to check out what GeoOp is all about and how it will help you on a day to day basis within your business.
Like us here: http://www.facebook.com/firstmateaccountants
So, what is Xero all about anyway?9.05.2014
Thinking of joining the Xero revolution? Check out this brief video that gives an overview of this great piece of software:
Overdrawn Current Accounts30.04.2014
Question
Company A has made a loan to a related family trust.
Is Company A obliged to charge interest to a Trust, where that trust has an overdrawn current account?
Answer
Yes, Company A should charge interest on the advance provided to the family trust. If no interest is charged there is a risk the advance will be a deemed dividend.
A deemed dividend will arise where there is a transfer of value and the transfer is caused by a shareholding relationship (i.e. the recipient (the trust) is associated with the shareholder) [ss CD 4, 6(1)(a)(ii), Income Tax Act 2007]. The deemed dividend would be equal to the difference between the interest charged (if any) and the interest calculated at the prescribed FBT rate.
To avoid a deemed dividend arising, Company A would need to charge interest at a market interest rate.
Improved Xero Support24.04.2014
With our latest release to Xero, we snuck in a couple of really awesome improvements to our help menu. It’s just the beginning of heaps of cool new features we have planned for finding help and contacting the Xero support team, but for now you’ll still see some immediate improvements.
If you can’t find what you need, you can always contact us in Support. This is the blue Contact Xero Support button at the bottom of the search results. By raising a ticket from within Xero we receive more information (rather than emailing) – like your organization’s name, product edition, your role, system, and browser version – all of which helps us find and get an answer to you faster.
Lastly, if you have a feature request you’ll now be directed to the Feature Request section of Community. This is where you can search for the feature you’d like and add your vote. If you can’t find an existing request, create your own that you and other users can vote on.
