Expenses

7.4. Writing Off Fund Formation Costs

Having entered Fund Formation Costs during Fund Setup, you may wish to write off this Expense.

To write off this cost, choose EXPENSES from the Tab Menu.

Add new expense to write off

Click ADD NEW EXPENSE.

Select FUND in the Account Field.

Enter fund formation costs writeoff

In the FROM ACCOUNT field, select 1-1086 Fund Formation Costs.

Choose 1-1086 as From Account

Enter the Date and Description, then choose Account 5-1086 Fund Formation Costs Written Off in the ALLOCATE TO field.

Allocate to 5-1086

 

Enter the Total Cost (the amount you entered as Fund Formation Costs during the Setup process).

Complete the expense form

Click ADD EXPENSE to save.


NOTE: When closing the financial year in which this expense was written off, you are able to select the preferred tax deductible status to ensure the write-off is correctly reflected in your tax return. Please refer to 11.2.4.1 Select Tax Deductible Status of Written Off Fund Formation Costs.


 


about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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