I have a number of clients who are incorporated and I can not figure out how to exclude "other expenses" from the income that flows to the balance sheet. For example when the corporation pays income tax it is an expense but not a deductible expense. Does anyone know how to fix this!!
Let me help share some insights about the profit & loss and balance sheet.
Currently, there isn't a way to exclude "other expenses" on your P&L and Balance Sheet. The only workaround you can use is to assign classes on your transactions to track specific expenses and handle occasional expenses that aren't necessarily associated with a particular account type.
You can perform these steps if you want to use the class tracking feature:
Next, you can set up class categories for your expenses and accounts:
Once you use class tracking, you'll get an excellent overview of your financial reports. This will categorize transactions by generating a report by class. You can refer to this article for details: Filter, sort or total reports by Class.
Keep me posted if you have other questions about your financial reports. I'll be around to help.