QBO Plus UK version. I have a question on Corporation Tax charge. If one wants to pass a provision for tax adjustment what sort of account does one create for the Corp Tax charge? It should be such that the P&L should show Net Profit before Tax and then Tax charge shown separately and then Net Profit after Tax. It must be in the conventional accounting presentation mode.
Currently it seems the above cannot be done cleanly. Close one can come up to is to park the Corp Tax A/c under Other Expenses. There should be a better way!
Hi HAM9 QuickBooks doesn't directly support accounting for Corporation Tax and therefore, as we aren't accountants, we recommend that you qualify our suggestion below with an accountant.
You would have to calculate the amount of Corporation due, then create a journal to move the amount from the retained earnings to a liability account, you may have to set this, then when you pay the Corporation Tax you would create and expense and in the category column of the expense select the liability account that you used. This method will not show on the P&L due to the type of account, liability, being used.