This article is for users adding plant/capital purchases to their cashbook and budgets.
Adding plant purchases to your cashbook will differ depending on if the item was purchased outright or finance and if you report to the ATO using cash or accrual accounting. Prior to making major purchases or entering the transaction into your cashbook, we recommend seeking advice from your Accountant.
If the plant purchase was purchased outright using the business account, this can be entered as a normal transaction/eft payment and coded to (i.e. plant purchases). If the plant purchase was financed, your accountant may prefer the purchase to be setup as a bank account in the file so the full liability can be brought into the Statement of Position. Please note that you will need to reconcile the new account each month.
For either method of purchase, ensure you provide your accountant with any documentation regarding the purchase with your end of financial year tax information.
Follow the articles below on how to enter the plant purchase into your cashbook and budget.