We have about $3K in startup cost / organization cost which we have recorded as an expense under a new COA we created - startup cost. We plan to pay our self back as an expense this amount. What should this expense be mapped to tax-line in COA for this?
Also, do we need to separate organization cost vs startup cost - if yes, what should both of these be mapped as tax-line in COA?
Sorry if my question was not clear - I have already spent this money before starting the company - I plan to pay myelf back for this amount once I get paid from clients. Question is how do i show this in Chart of Accounts - what tax-line do I map this Start-up Chart of Account.
We can only walk you through the process of setting up the account. However, when it comes to selecting the tax-line mapping, it's best to reach out to your accountant or a tax professional.
When you create a new account in Chart of Accounts, you'll see a link How do I choose the right tax line?. If you click that one, it'll give you a detailed information why it's necessary to consult a tax professional on how to use tax line mapping.
Click Accountant on the menu.
Select Chart of Accounts.
Click Ctrl+N on your keyboard to create a new account.
Click the How do I choose the right tax line? A Help Article window will pop-up.
Let me know if you have additional questions about this. I'll be happy to answer them for you.