What is meant by Private share calculation?
The automatic calculation and booking of private shares is a feature in accounting software that automatically calculates and records the portion of business expenses used privately. This typically applies to costs for company vehicles, phone and internet usage, and other business expenses that are partially used for private purposes. By automatically calculating and booking these private shares, the software ensures correct tax treatment and separation of business and private expenses.
Typical features of software in the area of automatic calculation and booking of private shares include:
- Automatic Detection of Private Usage: Detection and allocation of expenses that are used both for business and private purposes.
- Calculation of Private Share: Automatic calculation of the privately used portion based on predefined parameters or usage records.
- Automatic Booking: Creation and booking of the corresponding adjustment entries to accurately record the private shares in the accounting system.
- Reporting: Generation of reports to review and track the calculated and booked private shares.
- Tax Compliance: Ensuring adherence to tax regulations and guidelines regarding the private use of business assets.
- Integration with Other Systems: Seamless integration with other accounting and ERP systems for consistent management and documentation of private shares.
- Custom Settings: Ability to customize calculation parameters and methods according to the specific requirements of the company.
- Notification System: Automatic notifications about the calculation and booking of private shares to relevant users or departments.