@Anonymous wrote:
First, I feel it is very frustrating that nowhere on the internet explains how to enter a car lease in Quick book ...and I mean a step by step instruction. I am in Ontario Canada.
I have a car lease from Honda. The lease is for 3.5 years at which time I can walk away from the lease or buy it out. After an exhausting search...I think this is an operating lease. Is it?
Could someone please let me know what I need to enter in the chart of accounts.
I do not pay expense directly out of my business account. I pay them from my personal account and make a General Ledger adjustment at the end of each month.
I am guessing that I could create an Expense account (need instruction what I do when I hit continue). and the create a Vehicle lease account as a sub account(again what do I put when I click continue)
Then I can just write a cheques payable to the Honda company and put that towards the Vehicle lease with the HST.
Please help as there is no help anywhere online and I'm not reinventing the wheel here.
Thank you
Mike
According to my interpretation, since you have a predesignated purchase option this is a capital lease not operating. This means both the vehicle as an asset and the lease as a liability must be on your balance sheet according to rules enacted 1/1/19 https://quickbooks.intuit.com/ca/resources/taxes/how-operating-differs-from-capital-lease/
http://www.mondaq.com/canada/x/734892/leasing/IFRS+16+Changes+that+Impact+Borrower
s+and+Lenders+are+Coming+to+Canada+Are+you+Ready
The advice in the Intuit article "It’s a good idea to consult your accountant about how IFRS 16 impacts your business and personal financial pictures" is good advice - you need to spend a few Loonies to get it right (I do not think QB knows how)
Payment from personal funds is simply equity contribution to the business.
