If I use my car for business sometimes.
How would I utilize the car mileage system in QB Premier 2005 to calculate how much money is owed to me from the corporation, and what needs to be set up, and what order is this transaction carried out ?
I don't use the Payroll module.
Right now if I travel 1000 Km in a given time, the money I get is calculated at 36 cents per Km. So I would get a payment from the company tax free for $360. So how do i handle this entire thing in quickbooks ?
If I use my car for business sometimes.
How would I utilize the car mileage system in QB Premier 2005 to calculate how much money is owed to me from the corporation, and what needs to be set up, and what order is this transaction carried out ?
I don't use the Payroll module.
Right now if I travel 1000 Km in a given time, the money I get is calculated at 36 cents per Km. So I would get a payment from the company tax free for $360. So how do i handle this entire thing in quickbooks ?
If the version you use can print checks then use that feature to get the $360 out of the corporation and into your hands.
Thanks.
Its a corporation.
Payment is tax free to the individual, since its an allowance/reimbursement.
I have figured it out, you need to keep track of car distance using the feature, then plug in the price per Km into an items list, that is associated with an expense in the pay bill section, the bill is paid to yourself or whoever that is listed in the other names list.
Cheers.
Ok. First we need to know is the business a proprietorship or partnership, or a corporation? Are you the owner of the business?
If yes to #2, and yes to either a) or b) above, then why are you tracking this? This is looked after on your personal taxes on the Statement of Business Activities that you send with your regular T1. Unless your Prop or Part are going like gangbusters, then why not incorporate?
If #2 is yes and yes to c) above, how do you pay yourself? Cut a cheque? How do you reimburse yourself for purchases made for the business cash out of your pocket? Total up receipts and cut another cheque? Suggestion: do a Petty Cash report and include your KMs and the $.36/km on the petty cash report. If you like, I can send a sample Excel spreadsheet for P/C.
You really CAN'T get QB to track that for you. Someplace you have to input the 36 cents per km car expense.
BTW, reimbursement for KMs is NOT TAX FREE. It is a taxable benefit. However, if you instead submit your gas receipts, that is a reimbursment of expenses....
Check with your accountant.... please.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.