Finance Book

A Finance Book is a parallel set of books kept for a different reporting purpose, most often because the IRD's tax depreciation rates differ from the useful life your accountant uses. Each Asset can carry a depreciation schedule per finance book, and each Depreciation Entry is stamped with the finance book it belongs to, so a report filtered by Finance Book Tax shows the IRD view and by Finance Book Company the management view. Entries without a finance book are common to both. Most small businesses never need one; create it only when your auditor or tax consultant asks for two depreciation views.

Report balance for a finance book = Entries with that finance book + entries with no finance book

1. 01Go to Invoicing > Finance Book > New and name it, for example Tax.
2. 02Save, then go to Assets > Asset Category and add a Finance Books row with the IRD rate and method.
3. 03On each Asset, add the finance book row so a second schedule is built.
4. 04Depreciation Entries post per finance book from each schedule.
5. 05Run Balance Sheet or Profit and Loss with the Finance Book filter to read each view.

Create under Accounts > Finance Book only if you need two depreciation views.

Finance Book Tax using IRD rates, Finance Book Company using useful life.