I am trying your software after 8 years of Quickbooks - very impressed so far!
I am self-employed and use the FPCS rates for motoring expenses. I would like to track actual motoring expenses, but also have a figure for FPCS expenses on my profit and loss report so it reflects my income for a income tax point of view.
I am thinking of creating a sub-account of Owner's Draw to record motoring expenses and have an expense account called FPCS. I then record a transaction from Motor Expenses to FPCS Expenses to record FPCS expenses (i.e 40p/mile for 10,000 miles, etc). This gives me an expense on the profit and loss report, and a figure for how much the FPCS exceeds my actual motoring expenses.
It looks like this will work, but I am not sure it is the corect way of doing it. Any comments?
Regards
Hi Roger,
Thanks for trying Solar Accounts - we're glad you like it!
The accounting treatment you suggest is fine - you will just need to remember that the profit in the Profit and Loss report reflects the 'taxable' profit and not the 'true' profit.
Regards,
