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P&L reports and vehicle expenses

 Hello 

For P&L reports, how do you report vehicle expenses? Would it be what you report on your taxes? For example, I use my vehicle partially for business and I use the actual expense report method.  Therefore only a percentage of my fuel and all other vehicle expenses is accounted for the business. Is this how i report on a P&L or do I just report the total amount of fuel paid for. Also I have a lien on my vehicle, so do I report only the interest paid (like I do on taxes) or do I report the total amount paid? I hope these are not stupid questions but I’m confused.

 

thanks for any help,

kam

2 Comments
QuickBooks Team

Re: P&L reports and vehicle expenses

Hello there, @kam9.

 

Allow me to help share information about running the Profit and Loss report in QuickBooks Online (QBO).

 

The Profit and Loss (P&L) report gives you a snapshot of your business whether it's operating at a profit or loss. The report is dependent on the transactions you've entered and what account you used when recording these transactions. This is what we called sources and targets.

 

For further details, you can check this article: Targets vs. Sources overview.

 

To account your transactions and run your report/s accordingly, you may need to consult with a professional accountant. This way, they'll be able to check and guide you further.

 

I'm also attaching this article for additional reference about the available reports in QBO: Available reports in QuickBooks Online.

 

Please feel free to add a comment below if you have any other questions about running the profit and loss report. I'll be happy to help however I can.

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Re: P&L reports and vehicle expenses


@kam9 wrote:

 Hello 

For P&L reports, how do you report vehicle expenses? Would it be what you report on your taxes? For example, I use my vehicle partially for business and I use the actual expense report method.  Therefore only a percentage of my fuel and all other vehicle expenses is accounted for the business. Is this how i report on a P&L or do I just report the total amount of fuel paid for. Also I have a lien on my vehicle, so do I report only the interest paid (like I do on taxes) or do I report the total amount paid? I hope these are not stupid questions but I’m confused.

 

thanks for any help,

kam


I find the easiest way, assuming you are taxed as a sole proprietor or partnership, is to record all payments for the car, record and pay them from the business.

 

then at the end of the year, you take your business mileage log and calculate the percentage of use for private and personal use.

 

Use the personal use percentage and do a journal entry to move the personal portion of the payments to owner equity drawing.

debit equity drawing, credit the auto expense account

most likely you will need more than one journal entry, fuel, interest paid, ties, oil, etc etc