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BigSprings's avatar
BigSprings
Cover User
3 years ago

Carbon Neutral Certification

Hi, we have recently applied for carbon neutral certification and the have paid various invoices relating to the carbon inventory, independant verification, audit and the cost of the offset itself.  I am just wondering where should I code these payments.  Should a new account be set up specifically for transactions which relate to these transactions?  

  • Hi BigSprings 

     

    Thanks for your post. How you allocate these expenses depends on the reporting requirements of your business. For example, if you want your Profit & Loss to show the cost of the certification separately to other expenses you would create a separate account for it. If you want the P&L to show all the different cost areas individually you could create a Header account called Carbon Neutral Certification with Detail accounts for audit, verification etc. Or if you don't need that level of detail you could allocate it all to one general account.

     

    If you're not sure I'd recommend speaking to your accountant. Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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  • Hi BigSprings 

     

    Thanks for your post. How you allocate these expenses depends on the reporting requirements of your business. For example, if you want your Profit & Loss to show the cost of the certification separately to other expenses you would create a separate account for it. If you want the P&L to show all the different cost areas individually you could create a Header account called Carbon Neutral Certification with Detail accounts for audit, verification etc. Or if you don't need that level of detail you could allocate it all to one general account.

     

    If you're not sure I'd recommend speaking to your accountant. Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.