Help from Tax Buddy

Below you will find helpful documentation to find your way around Tax Buddy. Remember, we are always here for you if you need more help. Just get in touch.

Sign up with Tax Buddy

1. If you’ve never used Tax Buddy before, start by creating your account – see below.

  1. Go to the Tax Buddy page (
  2. Enter your details, read and agree to the terms and conditions and then click Register

2. Set up your User details and your logo and word template for your Practice.

  1. Click on the top left-hand corner to open user details (above search organisation button.
  2. Check your details to ensure it is correct
  3. Under ‘Default PDF Report Text’ – you can enter the text here to customise to your Practice.
    The available tokens are:
  • [Year]
  • [Year]
  • [Month]
  • [Total Income]
  • [Total Cost of Sales]
  • [Gross Profit]
  • [Total Operating Expenses]
  • [Operating Profit]
  • [Losses C/F]
  • [Shareholder Salary]
  • [Other Adjustments]
  • [Prov Tax Liable]
  • [Tax Paid]
  • [Prov Tax Due]
  • [Prov Tax Paid]
  • [RWT]
  • [Imputation Credit]
  • [Terminal Tax]
  • [Home/Office Expenses]
  • [Depreciation]
  • [Other]

Example of using Tokens
“Based on our prediction your profit for the year will be approximately [Operating Profit]. The tax due on that amount is [Prov Tax Liable]. You have already paid [Tax Paid] tax towards the [Year] financial year. You have got [Prov Tax Due] left to pay.”

4. Uploading company logo

  • Choose file
  • Upload file
  • Click save

Enter the tokens as it appears above, any spelling errors or spaces will not format the letter correctly.

Add your first organisation to Xero

Once you’ve registered your Tax Buddy account, you’re ready to set up your first organisation in Tax Buddy.

  1. Click on Add Organisation from the left menu
  2. You will be taken to the Xero login page, enter you Xero login details and hit Login
  3. Once you have logged in, choose the Organisation you want added to Tax Buddy (note: you can add only one organisation at a time)
  4. Once you have selected the organisation, it will redirect you back to Tax Buddy dashboard

Confirm organisation data

Before you start any projection work, ensure the organisation data in Tax Buddy is correct.

Click on the organisation name to bring up the following information.

(Note: the information on this page is pulled directly from Xero, if the Type or IRD number information is not correct, please check in Xero under Settings/General Settings)


Once you have checked the organisation data, you can now start on the projections.

  1. The Actuals default to YTD previous month. For example, if you are running a report on 26/7/2017, the first column will reflect YTD June 17.
    Note: make sure Xero is up to date with the coding.
  2. Projection Method – currently there are two projection methods – Fixed and Annualised.
    – Fixed – you can enter the amount manually.
    – Annualised – takes average YTD and applies for remaining months.


  • Cost of Sales – keeps up all account type Direct Costs In chart of accounts.
  • Other Adjustments – includes Home Office Expenses, Depreciation and Other
  • Tax Paid – Log onto IRD to see what tax have been paid for that financial year
  • Shareholder Salary – can be allocated in the YTD column or as a total under Projected Rest of the Year column
  • Reconcile Xero and refresh Tax Buddy to pick up the correct data

Shareholder / Beneficiary / Partner Distribution

The distribution made to shareholders/ beneficiaries/partners can be managed by clicking on this button .

  1. To add or edit the shareholder details, click on the edit pencil button in the Name box. The details will be saved for next time.
  2. Enter the share % – this will split the shareholder salary you entered on the main dashboard page.
  3. Other Income – Enter any other income like income received from partnership, trust, PAYE income.
  4. Tax Paid – click on  the to enter any tax paid.

Use inactive button if the shareholder has left the organisation.

Creating PDF to email to client

Once you are done your projection calculations, you can create a pdf to send to your client. There are two versions on report you can email – extended version or summary version.

  • Extended version – includes detailed table.
  • Summary version – includes Total Income, Operating Profit, Other Adjustments and Prov Tax Due amounts only.
  1. Click on the  button to create a pdf.
  2. Make any last-minute change if required before hitting Create.
    Note: The text will be defaulted to what you have saved under User details, you still have the option to edit before you create a final pdf.

Use tokens (see user details) to create your template. This will save you typing figures and dates each time.

Share Organisation

You can share organisation with the allocated staff members or client.

Click on the Share Organisation button on the left menu bar

  1. Choose who to share the organisations with
  2. Pick the organisations
  3. Complete your changes
  4. And click on  

Please make sure that you have only selected those organisations which you want to share with the user.

Frequently Asked Questions

Do I get charged as soon as I create an account with Tax Buddy?
No, the first 15 entities that you add are free.

What if I don’t have a Xero account?
The current version of Tax Buddy is integrated only with Xero. Our future versions will include MYOB.

How long does it take to set up?
It takes an average of 7 minutes to setup and adding one organisation.

I am using an Excel spreadsheet to calculate Provisional Tax for my client? Why do I need to use Tax Buddy then?
Excel takes longer time than Tax Buddy and have room for human errors. Tax Buddy saves 30 minutes on average per client when compared to using Excel. In our testing phase, with an Accounting Practice using Tax Buddy for their 100 clients saved over $35k per year when compared to Excel.

I am using Practice Manager so why do I need Tax Buddy?
Tax Buddy is not replacing Practice Manager. Tax Buddy estimate provisional tax for your clients on a regular basis using actual YTD data. Whereas Practice Manager uses mostly standard calculations to send reminders to clients and if you do use estimate method, you are still calculating the tax on a piece of paper or Excel.

What are other use of Tax Buddy reports?
You can include reports as part of your management report or for your cashflow planning.

I have more than one entity, will tax Buddy work for me?
Yes, indeed. You will create a separate entity on Tax Buddy for each entity.

I need someone to come over and help me setup? Does Tax Buddy do “House calls”?
Yes, we can organise that for you, send an email to

I like tax Buddy but don’t know where to start, what should I do next?
Contact us. We would be happy to discuss your questions or any concerns and help you set up.

Your questions not here? Get in touch!