31 Mar, 2021
For the launch of Fathom forecasting, we built three tax types to help you calculate your statutory obligations with precision and ease. This month, we’ve introduced further enhancements to these tax settings, so you can spend less time calculating and more time analysing the numbers.
Smart tax setup
When generating your forecasts with Fathom’s Quick Start option, we do the heavy lifting by leveraging your company’s historical financial data to predict future financial outcomes.
Fathom’s Quick Start has received a fresh update to help calculate your taxes accurately with just a single click. If your connected company is from the US, Canada, UK, South Africa, Australia or New Zealand, we will read your consumption taxes from Xero and QuickBooks, and set up your withholding and income tax expenses using our Smart Tax Calculator.
Bi-annual & Bi-monthly payment cycles for taxes
Taxes typically represent large cash movements for a business, so we’ve added additional tax flexibility to help you count all the dollars that matter. We’re excited to announce that we’ve added Bi-annual and Bi-monthly tax payment schedules to all three tax types for our New Zealand friends. These options give you more control over your auto-payment calculations for cash tax movements.
Where your tax and financial years may differ, you can now manage this alongside your tax payment profile. Simply flip between tax year start months and specify your tax year start date.
For each of your consumption, withholding, and tax expense accounts, you’re able to set a different tax year, giving you complete flexibility over the calculation and payment of these taxes.
Carry forward/refund controls for taxes
Our Forecast scenarios make it easy to model different financial outcomes for your business. If one of your scenarios falls negative, or you’re expecting a cash refund, you now have the ability to direct how these situations are handled within Fathom.
Use our new ‘Cash refunds allowed’ control, to tell us whether you’d like us to show your negative movements in tax accounts as cash refunds, or simply offset the liability account for future taxable periods. Build scenarios where your EBIT swings between positive and negative, and rest easy knowing that your tax is being handled just the way you want it.
Multiple Taxes, Single Liability Account
We understand, that often your tax liabilities may accrue into one balance sheet account. That’s why we’ve added the option to build tax rules across different tax types, expense accounts and variations.
This gives clarity to the calculations, and allows you to track the inflows to your main tax liability account by tax type.
Opt-out control for tax payment cycles
Opt-in and out of our automated tax payments with our new ‘Automate Payments’ checkbox. Choosing to automate payments allows you to set up a tax payment profile, where Fathom will automatically journal the forecasted payment to the taxing authorities.
Have an unusual payment cycle or want to set your payments up manually for ultimate control? Simply opt out of the automated payment and pop into the balance sheet to get started with a journal or schedule.
Find out more about setting up your taxes for success with these resources:
And if you're not using Fathom yet, start your free 14-day trial here today.
Written by Allanah Miller
Allanah is a Product Manager at Fathom, having previously worked closely with our customers in Account Management over the last few years. As a qualified CPA, Allanah brings vital accounting acumen to help us build the best possible product. Before joining the team at Fathom, Allanah studied at UCLA and worked with PwC for three years as a Senior Tax Associate.