From cars to tools to loans and everything in between, your business may be able to claim a lot more depreciation and interest than it already is. The built-in asset and liability register in Thriday automates it for you.
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Keeping track of assets and liabilities used to be a chore, if you don’t do it it can cost you thousands of $$$ in lost depreciation, meaning more money to the taxman and less in your pocket.
Without a clear record, you might miss important details about your finances. This can lead to a distorted understanding of your net worth and overall financial health.
Decisions like investments, loans, or managing cash flow become trickier when you lack a solid grasp of your assets and liabilities. This can lead to missed opportunities or even financial strain.
You might miss out on claiming depreciation (gradual decrease in value) on assets, which can reduce your tax burden.
Without knowing your exact liabilities, it's difficult to manage your cash flow effectively. This can lead to late payments, strained relationships with suppliers, and potential penalties.
If you need a loan for growth or other purposes, having a messy financial picture can make it harder to convince lenders of your business's stability.
The Australian Taxation Office (ATO) may require you to demonstrate your financial position during audits. Not having proper records can lead to delays, fines, or even penalties.
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Manage your finances end-to-end in one place from banking to asset register and everything in between save 6 hours a week on financial admin.
To record a loan repayment, you must first create the loan as a liability in Thriday's Asset and Liability register. If the loan repayment was made from a Thriday account, you just need to select the loan from the Chart of Accounts dropdown. If the loan repayment was made from an account outside of Thriday, you can add the repayment as a balance in Manage Balances.
Assets represent the valuable resources owned by your business. They can be further classified as:
Thriday's Asset and Liability Register primarily focuses on tracking your long-term or 'fixed' assets which have been entered into Thriday. Many of these assets depreciate over time and you may be able to claim tax deductions for this depreciation. Thriday's Asset and Liability Register assists in calculating the deductible depreciation for each asset and seamlessly integrates this information into your financial records and tax estimates. Additionally, it can calculate any profits, losses, and capital gains resulting from the sale of assets.
For more information on tax deductions for depreciating assets, see Tax deductions for depreciating assets and capital expenses | Australian Taxation Office (ato.gov.au)
If you've selected 'Yes' for Auto Depreciation, Thriday will automatically calculate and apply depreciation to the relevant assets using the simplified depreciation rules based off the ATO’s guidelines. For assets excluded from the simplified depreciation rules, you can refer to the ATO guidance here: ATO Depreciation Guidelines.
However, if you wish to add depreciation for assets excluded from simplified depreciation or if you prefer not to use simplified depreciation rules in Thriday, you can manage this through the Manage Balances feature.
In Tax, click on Manage Balances. Under the Expense toggle, locate depreciation. Each asset will have its individual depreciation account, which you can select from the drop-down menu to customise your depreciation calculations.
The accuracy of the automatic depreciation calculations, based off the ATO’s guidelines, is dependent on you correctly identifying the type and value of assets being depreciated.
Thriday automatically applies simplified depreciation rules to your assets and liabilities.
The simplified depreciation rules can only be used by eligible small businesses. For more information on eligibility criteria, see Simpler depreciation for small business | Australian Taxation Office (ato.gov.au).
If your business is not eligible to use simplified depreciation rules, you will need to amend this in your Tax Profile which you can access from the Tax module in your Thriday account.
When a depreciable asset is created in Thriday, a new account code for the accumulated depreciation of that asset is automatically created. This account code will appear in the Chart of Accounts report.
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