XU Magazine - the Independent Magazine for Xero Users, by Xero Users
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The independent magazine for Xero users, by Xero users ISSUE 16 magazine COVER STORY Let Receipt Bank Do It, So You Don’t Have To INTERVIEW Steve Vamos Xero’s new CEO ISSN 2054-7226 16 Plus lots more from Xero connected Apps 9 772054 722009 Brought to you by PKF New Zealand (pkf.co.nz) Follow us on Twitter: @PKFI Issue 16 / 1 Brought to you by Brought to you by PKF New Zealand View Point Tax Brought to you by PKF New Zealand Proposed Ring- PKF Asia Dorian Crighton, Business Jono Bredin, Head of Tax Advisory Services Director, Director, PKF Bredin McCormack PKF Goldsmith Fox - Recastle - Dunedin Christchurch [email protected] Fencing of [email protected] catches the Residential Chris Lamb, Business Advisory Services Director, PKF Property Losses Rutherfords - Palmerston North Xero Bug [email protected] A ny day now, Inland D orian Crighton from interest of the Asian delegates go to As far as the rest of the conference Revenue is expected to Christchurch and Chris another level as they watched how went, China is, of course, hugely finalise their views on a proposal Lamb from Palmerston North Xero was transforming how their significant and PKF has a broad which will limit the ability of a recently attended the June PKF clients could do business in Asia. representation in China. We learnt property investor to offset losses Asia Pacific Conference which took The hands-on Xero demonstration a lot from the PKF China desk from their residential property place in Ho Chi Minh City, Vietnam. was presented by one of their local about how clients who are looking portfolio against their other staff from Hong Kong and grabbed to invest into China ventures can income (for example salary and With 105 attendees from 19 the attention of the audience going get help with establishment of wages) to reduce their income tax countries this was a real eye opener through the power of Xero and its companies, taxation advice and liability. to the rapid pace of change across ability, for instance, to auto code practical support on the ground. Asia and the Pacific. transactions using AI. In what is another targeted policy Of course, no visit to Vietnam would measure, the Government expects A stand out at the conference was This was such a good example of be complete without some site the introduction of loss ring-fencing a presentation from Xero which technology rapidly going global seeing so we spent the last day rules to help level the playing field really caught the imagination of and an outcome from that has been visiting the Cu Chi tunnels which between property speculators/ those attending. Xero have now a monthly “Xero Zone” webinar were quite amazing. They even investors and home buyers. opened an office in Hong Kong run by PKF International. The goal had a shooting range where you The Government considers that below), this investor would be able shares in a company, or to fund a as well as Singapore and have of this webinar is to share the could try your hand at an AK47 investors (particularly those who to claim an overall rental loss of trust or other entity, that acquires 30 staff between these two Asia knowledge built up from the early rifle or M60 machine gun – who are highly-geared) who are able to $3,000 in their tax return. Under residential investment properties. offices significantly beefing up their adopters of Xero in New Zealand said accounting conferences were claim a tax deduction for mortgage the ring-fencing proposals, they The proposed commencement date presence in the region. and help PKF Asia firms build a boring? interest often leading to a refund would instead declare nil income in for the ring-fencing rule is the start solid and growing Xero skill set and of PAYE paid, helps them to outbid their tax return and carry forward date of the 2019-20 income year (1 What was fascinating was to see the business offering. owner-occupiers for properties as the loss of $3,000 to offset against April 2019 for most taxpayers). they are not allowed to claim the future rental or property income. The impact of the ring-fencing rule same deduction. is definitely something to keep in Inland Revenue has also thought mind if you own or are considering The proposal is that loss ring- ahead to consider the avoidance investing in residential rental fencing will only apply to rules that will be required to properties. “residential land” as currently prevent structuring around the defined for the bright-line test and proposed ring-fence. For example, For further information or advice, would not apply to a person’s main investors circumventing the rules please contact Jono Bredin at jono@ home or land that is already subject by borrowing funds to acquire pkfbmr.nz or call +64 3 951 3162. to tax on sale. The proposal is for the rules to apply on a portfolio Property 1 Property 2 basis so investors would still be Rent received 20,000 15,000 able to offset losses from one rental property against profits from Expenses paid 12,000 7,000 another property. Interest paid 12,000 7,000 Currently (see example in the table Profit (Loss) (4,000) 1,000 i / Issue 16 XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com Brought to you by PKF New Zealand (pkf.co.nz) Follow us on Twitter: @PKFI Issue 16 / ii Brought to you by PKF New Zealand Xero Tips Xero Apps Brought to you by PKF New Zealand Making the most Xero Gems Chelsea Connell, Xero Kelly Nixon, Xero Consultant, PKF Hamilton - Implementations, PKF Hamilton Rutherfords - Palmerston North [email protected] [email protected] of Xero Apps op tips to make your life in emails. When you receive bills you need to do is click “Ok”. P ushing the boundaries to generate follow up emails that issues are solved quickly. I would T Xero a breeze from suppliers via email, simply is something I like to do, have a humorous edge to them. We work closely with our Accounting forward them to your “Xero Bills” 3. Are your customers or suppliers and we found that with a group found this was effective in bringing team and pick up on coding My name is Chelsea Connell, a address and they will arrive as using Xero too? Share your Xero of Apps that link to Xero we could down debtor days, highlighting feedback so their regular reporting Chartered Accountant and Xero a draft Purchase in Xero. Once Network Key with one another. automate the administration for issues to be resolved and making and GST work can go smoothly. Enthusiast at PKF Hamilton. I have you have completed entering This will allow invoices to flow our clients and support them sure follow up happened. been working with Xero in public the invoice details in Xero, you between you and your customer/ remotely without sacrificing Where Inventory is involved we’ve practice accounting firms for 6 can save the bill and attached suppliers Xero files directly. The efficiency. How do we do that you On the Creditors side once again we used Unleashed and I again work years. I love working out at my will be a PDF copy of the original invoices will show up as a draft might ask? used Receipt Bank incorporating alongside our Accounting team local F45 Gym and don’t mind a few bill. No need to print off any for you to approve. No further everything we had learnt internally where their technical knowledge is cheeky wines on a Friday – it’s all hard copies – your invoice is now work required…except making or Well most administration systems including getting the client’s required. That’s the key really that about the balance. Connect with electronically stored within Xero! collecting payment! include Debtors and Debt suppliers to email invoices direct we are wider team supporting what Chelsea on linkedin. Collection, Creditors and Payments, to Receipt Bank. What was so our clients require. Are you currently using Xero but 2. Download the Xero app. When Payroll, General Ledger Cashbook effective was that at any stage in feel like you aren’t maximising all you are making purchases on and Reporting plus sometimes the approval or payment process I like to think we take the of the features available to you? your credit card or business card, Inventory. That meant quite a bit of the client could open a copy of the headaches out of running a Here are my top tips for efficiently simply take a photo of the receipt learning to get up to speed with the invoice to check. business so that our clients can managing your paperwork. via the app, enter the supplier Apps that drive each area. focus on what they do best. If you details and throw away the For payroll we used a local would like to know more about 1. Every Xero file has a unique paperwork. Bank reconciliation When we looked at Debtors the provider, Smart Payroll who have how we can help, email me at kelly. email address linked to becomes a breeze because Xero ideal situation was where our the advantage that they handle [email protected] Purchases. Save this email will match the bank transaction clients used an App like Workflow all the payroll filing with the tax address as a contact in your line with the receipt for you.