Xero: Easily Adjust Your Financial Year End Settings
Simplifing your financial reporting ...
Posted by Alison Mead on 23/02/2024 @ 8:00AM
Xero has made some significant improvements to its financial year-end settings. This update comes at a crucial time as the UK prepares for HMRC's basis period reform in 2024 ...
Xero's latest update makes it easier for businesses to adjust their financial year end!
The first major change in Xero's update is the ability to easily adjust your financial year-end. This means that if your business operates on a non-standard financial year, you can now align it with the standard UK tax year (6th April to 5th April). This feature will save businesses time and effort in adjusting their financial records to conform with HMRC's requirements.
"Another significant addition is the extension of the fixed asset period!"
Previously, when a financial year end was changed, Xero would automatically roll back depreciation for fixed assets. With the new update, users can choose to extend the period, for example, from 12 months to 15 months, ensuring accurate depreciation calculations and avoiding any manual adjustments.
Xero has also introduced a new column in its reporting section, specifically for the transition period. This column will display any transitional profit claims and basis period adjustments, making it easier for businesses to track and report on these changes. This feature is especially useful for businesses that have multiple financial years within the transition period.
It is essential to note that the start date for HMRC's basis period reform is the 6th of April 2024. This reform will affect self-employed individuals and partnerships, as their income will be calculated based on the tax year, rather than the current basis period. Xero's update ensures that businesses using the software are prepared for this change and can accurately report their income.
To help businesses understand the impact of HMRC's basis period reform, Xero is hosting a webinar on the 3rd of April. This webinar will provide a detailed explanation of the changes and how Xero's latest update sets you up for a smooth transition. Alternatively, businesses can also refer to Xero's blog for more information on the basis period reform.
In addition to the changes mentioned above, Xero has also made minor updates to its Personal Tax self-employment and partnership income worksheets. These updates include the incorporation of transitional profit claims and basis period adjustments, ensuring accurate calculations for the transition period.
"Xero's latest update makes it easier for businesses to adjust their financial year end!"
They can track transitional data, and prepare for HMRC's basis period reform. With the deadline for the reform fast approaching, businesses must have reliable and efficient accounting software like Xero to ensure compliance and accurate reporting.
If you haven't already, it's time to switch to Xero and simplify your financial reporting.
Until next time ...
ALISON MEAD
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about Xero and the ability to easily adjust your financial year-end settings, it may be a great idea to give me a call on 01604 217365 and let's see how I can help you.
Alison loves bookkeeping and supporting bookkeepers. She has been helping clients to be better bookkeepers in Sage 50 for over 24 years and has been Xero Accredited in accounts and payroll for a number of years too.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with her Forever Living network marketing businesses and is often to be seen at business networking meetings as she likes to keep busy.
You know what they say: if you want something done well ask a busy person!
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