Thanks for providing details of your concern, @hellocharlythedesigner. I'm here to share some information and help you review your categorisation in QuickBooks Self-Employed (QBSE).
The QBSE system automatically sorts your transactions into either "allowable" or "disallowable" expenses based on the category you select when categorising them. To understand more about how transactions are classified, check out this article: Allowable and disallowable expenses explained. This will give you a clearer insight into optimising your tax deductions effectively.
Ensure that the studio rent expense is categorised under the correct expense category. Expenses must be categorised properly for them to accurately reflect on your tax calculations.
Here's how:
- Navigate to Transactions.
- Locate the studio rent transaction.
- Assign the category by choosing Business, Personal, or Split.
- Review the automatically assigned category in the Category column.
- Click the category link to adjust it if necessary, selecting a general type followed by a more detailed category.
- Click Save to finalise your changes.
For additional information, check this article: Categorise transactions in QuickBooks Self-Employed.
If you need additional assistance on what specific account to use for tracking these expenses, I suggest consulting an accountant. They can guide you on the correct categories and provide expert advice for your situation.
Additionally, you may want to check out these articles as references in case you need guidance on categorising transactions and using rules to manage them in QBSE: Create rules to speed up reviews in QuickBooks Self-Employed.
This thread is still open if you have more questions about your transaction categories. If there's anything else I can do for you regarding your reports or any other issues in Self-Employed, feel free to add the details to your reply. Have a great day!
