How can i record meal and entertainment expenses

You need TWO expense accounts.

"Meals and Entertainment" is for the entries that will be reported on your tax form as subject to the 50% limitation.

Coffee and food at the office (supplies expense) and meals at the office for the convenience of the employer (such as making everyone stay and work through lunch) or meals for/with employees (such as an annual review dinner or a Company dinner) are not subject to the 50% limitation, so put them in a different expense account.

What other account could I use for the meals that are not deductible?

so, what expense category you recommend to enter meals that are not deductible?

Hi there,

Can you suggest me a way of booking the following meals & entertainment expenses in QBO?

if the total meals expense incurred for $ 60.46 

Amount before tax = $ 44.75

                        Tax  =  $ 6.71

                        Total = $ 51.46

                      + Tips = $ 9

                        Total = 60.46

How would i record this? i usually record it with 50% HST on meals which means claimable tax is half of the tax amount i.e $ 3.36.

Looking forward to your prompt response!

Thanks,

Monali