Provisioning in Balance Sheet
I am wanting to create a few accounts to keep track of liabilities other than Payroll ones (Payroll Tax, Insurance etc). Essentially these are little "buckets" of money that I want to see in the Cur...
Forum Discussion
A Tradeoff exists between accounting entries/reporting and time/effort.
The Tax Law allows a Small Business Entity to claim some expenses with a timeframe less than 12 months at the time of payment eg insurance. Confirm your circumstances with your Tax Accountant.
By Example, a Business Owners might pay $6000 of Insurance (12 months in advance) in January 2024.
The Business Owner if looking at a monthly/quarterly P&L may wish to allocate at $500 per month.
Thus the tradeoff between proper accounting, time and effort and tax law.
Duncan
Sorry I have no idea what you are talking about as regards trade off and tax law.
All I want to do is set aside in MYOB categories for things that I know I will have to pay out within the financial year. Insurance is a good example where I put aside $x a month so that when I have to pay the final insurance premium I have the funds available.
I want to include this under the Other Current Liabilities.
