Charitable Donations as an LLC
FourTrrees
Member Posts: 1
My business donates 10% of each sale to a local non-profit as part of its business model and I am trying to figure out how I might go about accounting for this. I realize that I am unable to count it as an expense but just don't know how I should go about categorizing it in my accounting app. Any and all help would be most appreciated.
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Hi @FourTrrees.
There isn't currently a way to automate this. You would have to consider it an expense for an amount equal to 10% of each sale. I'd recommend creating a custom account on your Chart of Accounts to keep track of those donations separately, however.