Exclude Advanced Tax payment from expense

Englicist

I am unsure whether I'm missing something...but I think the Profit and Loss statement should not include advanced corporate tax payment under operating expense. The system should exclude tax payment to show the actual profit (Profit before tax) for calculating tax and then show the Net Profit (Profit after tax), the way it is reported to the tax authority in India.
Any suggestion on how to achieve this is appreciated.

AlexL

Hi @Englicist . Just to clarify with you, although we are a product that's offered globally, we can't really advise different required needs that are based on specific locations. With this being said, tax that you add to your income and expenses doesn't appear in the Profit & Loss Report. Paying tax on the other hand, is an operating expense which is why it appears in your Profit & Loss. If you're in need of some different data insights, you can always export the data from the report and manipulate it to meet your needs.

Mikeg

Englicist,
Not sure how they do things in India. But here in the US estimated payments for corporate taxes are not an expense. They are classified as a current asset - Prepaid Taxes. At year end an entry is made to post tax expense and crediting a tax liability on the balance sheet.
Mike G, CPA