But if we do this, it will come show in our profit and lose under expenses. I want to record the payment but it not effect my profit and lose. How is this possible please ?
Help is finally here, RobB81.
You can create a Journal Entry (JE) to record the payment without affecting your profit and loss. Before doing so, I suggest consulting an accounting professional to provide more expert advice on how to handle this situation. They may suggest setting up a chart of account to show the amount of tax owed to HMRC(likely as a liability) Then you can create a journal to reduce the liability and the bank account. That would then show on the balance sheet but not the p and l
Here's how to create JE:
- Select + New.
- Select Journal entry.
- On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
- On the next line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
- Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
- Enter information in the memo section so you know why you made the journal entry.
- Select Save and new or Save and close.
For additional information on this, I recommend checking the following article about creating Journal Entry: Create a journal entry in QuickBooks Online
In case you want to review the entries made, you can pull up or print a report for Journal Entries
To take a closer look at your business finances, you can customise your financial reports. Check this article for details: Customise your company and financial reports.
If there's anything else that I can help you with, feel comfortable inserting a comment below. Have a great rest of the day.
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