These are what your monthly financial statement must include;
Income –
What type of income should be there?
- Accrued income or monthly accrual basis of expenses;
- Any income from rendering services or selling products, although cash has is not received; it is to be recognized as income. However, for the same, the amount received should be deposited to the bank;
Expenses – Which expenses should be calculated?
- Accrued expenses or monthly accrual basis of expenses;
- Any expenses incurred, though not paid, can be recorded as expenses. Just that the expenses should be business related in order to show the financial statement. Make sure, the recorded expenses have supporting documents to prove that:
- The company/partnership are the payers;
- The expenses are paid (receipts or a filled up receipt).
Un-deductible Expenses:
What are the un-deductible expenses?
- Unreasonable high expenses;
- Tax penalty or any penalty for a criminal case;
- Expenses without the proof of the recipient or without financial evidence;
- Entertainment expenses not under ministerial regulations;
- Expenses that do not involve business process;
Source: Panwa Group
