Income Tax Expense, Liability and Payment

When an income tax expenses account is created by default PlanGuru resolves this expense by assuming a cash payment.   For most customers this does not accurately reflect how they pay their taxes.   Most of our customers need to accrue for taxes and record payments on a periodic basis.  The attached modeling sample shows one way of how this can be accomplished in PlanGuru.  

Here are the steps:

1.  An income tax expense account is created on the statement of Revenues and Expenses ( see Income Taxes category). 

2.  On the Balance Sheet a tax liability account which accumulates the payable and pays down the balance based on your payment schedule  (see Income Tax Liability category).

Download Tax Accrual and Payment.zip