My specific question is should taxes (e.g. federal) paid (and TAXES due for the accrual case) be included as a Expense on the P&L? He says yes, but I think they should not be.
In our case tax management is one our primary concerns (distributing salary/commision payments over the year to minimize profits, corporate taxes, and late estimated tax penalties). When taxes are included in the P&L you have to remember to add these back into the net income to to estimate the taxable profits.
Does the standard definition of a P&L include taxes or not? - Thanks