Hi how do i incorporate company tax into my profit and loss
If you search the forum, you will find a few entries explaining how to do this
This is just one example Dividends and Corporation Tax Expenses Sub Section on P&L - #16 by Brucanna
Hello Angela, I am struggling with the same thing did u get assistance?
Not really let me try what they suggest and two back to you
I am looking at few comments but I haven’t found anything yet, some suggests journal entries,but I want the account and the company tax % setup and calculates itself on the P/L statement
yes that’s also what I am looking for
Can anyone help us in these regard someone who has done it before
Manager only calculates VAT/GST, not income tax for individuals or companies or employees.
I looked at using a custom tax code but it was frowned on and didn’t work as expected
im confused you are talking about members contribution and I want on company tax?
A quantity can only be calculated when there is something to base the calculation on.
The example given was distribution of profit post tax to share holders. In that case there is a clear input to the tax provisioning, the amount distributed to the share holder.
In employee payroll tax calculation there is also a clear input, the employee’s gross pay
In contrast for income tax calculation at the end of a financial year, the input is all of your business accounts with an understanding of all of your tax regulations to interpret your businesses accounting records. That is something accounting software provides support for but does not generate.
- Have a before tax total, an expense account for tax and then an after tax total.
- Tax provisioning transfers funds from the expense account to a “Tax provision” liability account. A manual process based on your estimate of income tax for the period.
- When tax is actually paid an allocation to the Tax provision account is made to zero it at the end of that financial year, the balance taken from the tax expense account.