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Canada - how to exclude other expenses from the P&L and balance sheet.

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!!

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Re: Canada - how to exclude other expenses from the P&L and balance sheet.

Hello, @rres.

 

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:

 

  1. Go to the Edit menu and choose Preferences.
  2. Select the Accounting preferences and click the Company Preferences tab to access class tracking options.
  3. Enable class tracking by checking the Use class tracking for transactions box.
  4. Click OK when done.

Next, you can set up class categories for your expenses and accounts:

 

  1. Go to Lists menu and select Class List.
  2. Click the arrow next to the Class button at the bottom of the page and click New to create a new class
  3. Input the name associated with the class. If this class can be broken down further, put a check in the box next to Sub-class and enter the information in its text fields
  4. Associate the class with a specific expense by choosing it on the expense input form when you enter the information. 

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.