Hi all,
I have recently started paying self-employed superannuation and want to record it in Quickbooks. I am not quite sure though what kind of account I should set this up as. Is it an Expense? Or an Equity?
Thanks for the help.
like this is a creature of Australian tax law. Maybe someone here can answer your question but the group tends to be U.S.-centric and I doubt if many here have any understanding of self-employed superannuation.
If you can explain in reasonable detail how Australian self-employed superannuation works I'm sure you can get some responses to your question but you might be better off asking the question to a group involved with Australian tax law.
If the self-employed superannuation concept is similar to a traditional IRA in the U.S. - contributions to your IRA result in a tax deduction for U.S. Income Tax purposes but the money remains as your asset to be invested and grow until you retire - then I'd hope the Australian version has the capability of handling these contributions as part of its programming. In the case of an IRA contribution one does a transfer (e.g., from a checking account to an IRA (Asset) account) and Quicken "knows" what line this entry - recorded as a deduction in computing taxable income - should appear on in the tax return. From a mechanical accounting perspective (ignoring taxes) the IRA contribution is nothing more than a transfer from one asset account to another.
Tom Young
I understand. Yes, that sounds very similar to the Australian superannuation. So the IRA is treated as an asset account. That gives me a starting point. I will look further into it here in Australia.
Thanks for your help.
Andreas.
As I understand it it is like a 401K US style account. Apart form tax treatment? In Aus most self employed funds are set up through financial institutions and they take care of all the accouting and tax. Wht you probably want to do is record your contributions, for tax purpose as these will be deductible and track your asset values. I don't have Quickbooks but in quicken personal plus it has a "superannuation Accouint" for tracking this.
Hi, Andreas.
Sorry to pop in late on a 3-month-old thread, but if you are still dealing with this problem in QuickBooks, you might want to try that OTHER Usenet newsgroup: alt.comp.software.financial.quickbooks
Most of us in this NG deal only with Quicken, not QuickBooks.
RC
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