I would like to give a certain amount of money to various charities through out the year. Should I make a provision in the liability section for the said amount and deduct as and when given as it's not a business expense.
Hi Pamela,
If I were you I would record it as an expense (creating a new expense
account for charitable donations) but when creating some financial reports
you may need to manually reverse the effect of this expense.
However, I'm not an expert on this topic - please check with your
accountant.
