The video provides the following guide to using the Share Register & Franking Account -
- Creating a class of shares and authorised share capital with a face value on each share
- Issuing shares from the authorised capital to the members
- Transferring shares to another member
- Disposing of shares (capital reduction
- Understanding how adding members in the share register updates the relationships module
- Setting up the franking account
- Adding a balance to the franking account
- Adding a transaction in the franking account
- Paying franked and unfranked dividends
- Understanding how notating the company as SBE changes the rate of franking to equate to either 30% tax rate or 27.5% tax rate
- In the Financial Information Section, franking account must be positive or zero. Not negative.
- Dividend franking credits are not usually reflected in accounting income so I think it's reasonable to expect a difference between tax and accounting income.
- If a new company, there will be no franking account balance until tax is paid.
- Ensure that you have followed the instructions for importing the tax account into the Income Tax Validator from the ATO Portal web page.
- Make sure the date range covers the tax paid.
- Tax instalments can be imported from the Integrated Account while the balance of tax can be imported from the Income Tax Account.
- Be sure to select the right type of transaction to import to your Franking Account.
Manual Transactions can be added to the Franking Account where necessary