Video: FULL PRODUCT DEMO for QuickBooks Online advisors June 2020

Introduction to QBO Advisors Info Deck Slide

Demonstration of AssetAccountant™ – Transcript

Good morning, everyone and welcome to AssetAccountant™ – depreciation made easy for QuickBooks Online advisors.

AssetAccountant™ is a new product to the market we’ve just released. It’s a fixed asset depreciation product, and we believe it’s best in class.

It is cloud based and is the next iteration of a 20 year legacy product for PC desktop used by Big four accounting firms, second tier accounting firms and corporates also.

We’ve just released the cloud product, and we’re really excited about our partnership with QuickBooks Online.

The product is currently available in Australia and New Zealand (at June 2020) and live from this week.

I’ll keep this presentation component to a minimum so we can jump into the product and have a look, but we’ve really designed the product to provide a clear reconciliation between accounting and tax and compliance with ATO and IRD rules.

It provides clear automation of depreciation calculations and the seamless integration makes posting of journals into QuickBooks Online a one-button step.

We are really excited to have entered a partnership with Intuit QuickBooks Online.

Australian Tax Methods of Depreciation

Right, just before we jump into the product I want to touch on the Australian tax methods.

I’ll go through the functionality in the product demonstration, but we won’t have time today to go through all of the Australian tax methods.

In addition to having the usual 200% Diminishing Value and Prime Cost methods, we’ve also got full and immediate deductions.  The ability to flag R&D assets. Div43 so you’re okay for building and construction allowances, luxury motor vehicle limits, low value pools, software pools, and small business pools are all up and running and we’ll go through the low value pools today.

Black hole expenditure for section 4880, and the ability to track that through to the fixed asset register and reconcile that back to your balance sheet. Intangibles and primary production are coming in a future release and the ability to separate those out.

And in particular, the ability to tag primary production versus non-primary production assets and incorporate specific primary production methods.

And this week we’re very happy to announce that we’ve launched the Backing Business Investment (BBI) components for AssetAccountant™ as well. So you can now claim your 50% up to the $150,000 upfront up until 30 June.

And we’re currently extending that to 31 December per the government’s announcement. We’re just waiting on the legislation.

Mike Roberts - Taxlab Team Member

In our engagement with both accounting firms and corporates, we have identified there is clearly a need for a world-class fixed asset solution to work alongside Taxlab. Having searched the market for suitable partners, we are thrilled to be working with AssetAccountant to provide a best-of-breed model to our users...

Mike Roberts - Managing Director, Taxlab Australia

AssetAccountant™ Demonstration & QuickBooks Online Integration

So rather than bore you with slides, we’ll jump into the product.

It has very simple dashboard on introduction. You have the ability to see your asset groups and to show you the link to QuickBooks Online – if I go into register settings and come across to my integrations tab, you’ll see that I’m actually connected to a QuickBooks Online file.

So if you’ve only got one QuickBooks Online file, it will link directly using the same login that you use for AssetAccountant™. If you’ve got multiple files, you can select the files you want to see / connect to. We’ve got a selection of pools for any register – low-value pools, small business pool, we also cater for software pools. Coming shortly, will also be project pools.

One of the advantages we have with AssetAccountant™ is the ability to have unlimited users.

This includes giving your clients access to their own fixed asset registers, which is something that be very new for a lot of clients.

In your asset groups you will see we have some traditional asset groups already set up.

For example motor vehicles at cost, computer equipment at cost.

See how we are able to set up standard naming conventions, asset types, reporting categories for links back to the balance sheet, whether or not the group is subject to capital gains tax, what capital allowances disclosures we want on our tax returns. So what I might do quickly is just set up a new group and link that easily to QuickBooks Online.

I’ll set one up called Land and buildings. For my reconciliation to my balance sheet, I might want to disclose this separately on the face of my balance sheet or as part of my property plant and equipment. So for this particular example, I’m going to disclose it as part of our property plant equipment. Let’s say this one is subject capital gains tax and it is in “other tangible assets” category. We’re going to have no depreciation being land and buildings, or I can select my division 43 for building and construction. That’s for the tax method. I can also select my standard accounts depreciation method, which is prime cost. Now this is how easy it is to link to QuickBooks Online.

For my clearing of suspense account, I simply select link to QuickBooks Online. It brings up my QuickBooks chart of accounts. I select “assets suspense” then link the account. So for land and buildings – you’ll see I don’t currently have a land and buildings account. I can actually create a new account from within AssetAccountant™ for QuickBooks Online.

So this is my land and buildings at cost. It’s a fixed asset. I can select the subtype. Now for subtypes we do allow selection of those, but as most of you would know, they really don’t have much importance here in Australia.

No I just create my new account. I can select that account and link it. I’ll create a new account for my land and buildings accumulated depreciation. It’s a fixed asset so again I’ll put that as Land, then create my new account and link to that account.

Linking the Profit & Loss is just as easy. You’ll see that the chart of accounts has already been filtered by the P&L accounts. I select my depreciation. I can select my immediate claim. And you’ll notice here that we’ve split profit and loss. Some accountants like to show profit and loss separately in the P&L whilst others will show it as a combined account. I’m actually showing it as a combined account so I can map the same account to both locations.

So as you can see this is a very simple process. And that’s really all there is for setting up and setting up your accounts mapping.

AssetAccountant™ – saving you from spreadsheets since 2019

Other AssetAccountant™ Features (assets, transfers, pools, write-offs, reassessments, importing new assets, tax and accounts views)

I’ll show you how the journal entries work shortly, but first of all, I wanted to take you through the rest of AssetAccountant™. We have a list of all of our assets. I’ve actually processed this asset register right through to 31 May, and we’ve got the June updates ready to process. Now I bring up my complete list of all of my assets.

If look at my asset summary here’s a list of all the assets I’ve already taken up into the register. I’ve got motor vehicles, for example, so I can open up any asset. We see we’ve got the depreciation calculations for each month right through to 30 June, but let’s say I wanted to sell this vehicle. I just simply press the sale button, sell it as of yesterday for $3,000. You’ll see, I’ve now got a deductible balancing adjustment, being the loss on disposal. I can switch between my accounts view and my tax view very easily.

For accounts I’ve also got a loss for the sale. I’ll now jump into another asset.

Let’s pick a computer for example, you’ll see that it’s already in the low value pool for tax purposes, but for accounting, if I want to, I can reassess that asset and its useful life. I can also write off that asset. Let’s for this example write that off as of yesterday. Say the laptop has been lost or stolen, I can write that off also. And you’ll see that for accounts, I now have a loss on disposal for that asset whereas for tax this asset is already in the low value pool.

Our low value pool looks exactly as you’d expect the low value pool to work, we’ve got new additions being transfers – assets that were eligible to be transferred this year based on the written down value on 01 July 2019 being less than a thousand dollars.

We’ve got new additions, which are purchases up until 31 May. And what we might do is import some purchases in June. We’ll do that through Excel. Now I’ve already set up a standard Excel template. I’ve mapped that across. I simply import my assets. Here they are ready to process and I can process the import.

So that import has now being processed for this month. If I come back to my low value pool assets you will see that I’ve got eight new eligible transfers from the purchases. So to transfer those into the low value pool, it’s just as simple as going through and selecting them for transfer to low value pool. From an assets perspective, we now have all of our additions and disposals processed right up until 30 June.

Easy Posting of Journals (and adjusted journals)

Now I can run my journals. So we’ve already processed our accounts for May so I can create my journal. I just simply select it. And you’ll see there’s our profit or loss on disposal from before (being a loss). We put our accumulated depreciation and impacts from the sale.

We have a depreciation expense for each category and posting to QuickBooks Online is really as simple as pressing the post to QuickBooks Online button. Now you’ll see, it’s actually brought me up with the journal number. And if I click on that journal, I’m already logging into QuickBooks Online. You’ll see, here’s my journal entry and that’s journal entry number 9 that has just being processed and posted. That’s how easy it is to process journal entries in AssetAccountant™ to QuickBooks Online. Now let’s just say for instance, that I’ve actually forgotten to add an asset. And I had my new buildings asset group. I’ve mapped it, but I’ve actually forgotten to take up my land.

And let’s say that land had a cost of $1m, a purchase date of yesterday, but a capital gains tax date of 1st of April when we purchased it. So we can track all of our CGT here as well. Now because it is land, there is no depreciation. So that’s very simple to set up. Save, processed and very straightforward. So while we’re here, let’s say we also have forgotten to take up a motor vehicle.  Let’s say that it was $120,000 and was purchased on the 1st of June. And because it was purchased after the 12th of March, we’re entitled to the accelerated depreciation under BBI. So you’ll see that it’s straightaway, it’s defaulted to the luxury motor vehicle diminishing value for the Backing Business Investment Allowance for our standard eight years Effective Life.

So if I save that, you’ll see that for tax purposes, we’ve applied the capital in it. And then we’ve claimed the 50% Backing Business Investment (BBI) that we are entitled to claim on the date of purchase.

If we need to reassess the useful life of an asset at any point in time, I can simply select the reassess button and it will reassess that at any point in time, including reassessments made for future dates.

But now that we’ve taken up two assets and our journals have been processed, we’ve got to post adjusting journals for June.

Normally you would need to go and actually manually process those journals.

We have setup AssetAccountant™ and its integration with QuickBooks Online so that it will actually pick up just the movements since the last journal has been posted.

So it’s as simple as clicking create – and you’ll see that we’ve got our $120,000 motor vehicle, a million dollars in property and the accounting depreciation expense. So we do run separate accounting and tax books.

So if I post that to QuickBooks Online, you’ll see that has posted straight through.

Then click on the journal entry and you can see the new journal entry posted straight to QuickBooks Online.

Summary

The integration is really that easy. At the period end we want to run the reporting on the accounts view to support our financials. For example, here is our group summary, which should help us line up to our balance sheet. We have asset summaries, asset schedules, acquisitions, or disposal summaries, and coming very shortly will be a depreciation forecast for 12 months up to 10 years.

We have a standard export to Excel, basically exports all of our assets it’s exactly as is.

There is our Profit & Loss on disposal of the asset for example.  You will see we’ve got the summary level there also.

So AssetAccountant™ is very simple to use. And it’s designed for any fixed asset registers for individuals, private wealth clients and businesses and corporates.

We easily handle registers ranging from just a handful of assets (less than five) all the way through to several thousand assets.

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