How to Record a Non-Deductible Payment made from Bank account?

Question

Hi our company has paid a driving fine for one of our employees (as it was incurred during the time they were on the job). How do I record it to show that the money has been paid from the bank account but it is not an allowable deduction for tax purposes? All my expense accounts come straight off my profit and I don't know how to create one that doesnt.

tezzab1 · Answer

MaryHa I suggest you create a separate P&amp;L account for Fines &amp; Penalties to capture it.&nbsp; Use that account for other non-deductible fines &amp; penalties also such as ASIC late fees, parking fines, ato late lodgement penalties etc.&nbsp; &nbsp; &nbsp; Your accountant can then easily exclude everything in that account when preparing the tax return.&nbsp; &nbsp;

maryha · Answer

Thank you so much that makes sense.

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How to Record a Non-Deductible Payment made from Bank account?

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