Hi our company has paid a driving fine for one of our employees (as it was incurred during the time they were on the job). How do I record it to show that the money has been paid from the bank account but it is not an allowable deduction for tax purposes? All my expense accounts come straight off my profit and I don't know how to create one that doesnt. |
MaryHa I suggest you create a separate P&L account for Fines & Penalties to capture it. Use that account for other non-deductible fines & penalties also such as ASIC late fees, parking fines, ato late lodgement penalties etc. Your accountant can then easily exclude everything in that account when preparing the tax return.
Thank you so much that makes sense.
Separate Profit and Loss? does that mean we have to pay for another MYOB license as we only get one P&L , am i missing something , did you mean a separate Cost centre under expenses that can be identified when preparing a tax return
Just add a new expense account in your chart of accounts. My reference to P&L imeans that its an account that rolls up in your P&L as an expense as opposed to being on the balance sheet.
