Access Borrowing Cost Calculator to manage the correct amortisation of Borrowing Costs related to loans. Borrowing Costs are easily visible as additional costs of taking finance
Easily add new costs in relation to each loan taken by the business. Bear in mind that the rule in Australia is that borrowing costs can be amortised or written off over the life of the loan or 5 years whichever is the lesser.
Describe the name EXACTLY as you do in your Chart of Accounts. This will allow LodgeiT to automatically validate the balances for you.
Use the EXACT loan account number for the contract number. If it is a borrowing cost associated with a Hire Purchase, use the HP contract number.
Select the duration of the loan. This will be changed to months in LodgeiT update.
Use the ADDRESS when the Borrowing Cost is related to finance for a rental property.
Access the borrowing cost reports via the Reports TABS. Be sure to check the balances match what is in the financial statements.
The Borrowing Cost Report indicates how much to claim per annum and also indicates the expected balance at the end of each financial year.