Hi!
I don’t know if I can call this a ‘cost’, but I paid a deposit equal to one month’s rent to rent my practice space. I actually rent a space in a larger practice. It wasn’t done through a special account or anything.
How do I enter this in the accounts? Both now and if I ever stop and get the deposit back?
Thanks in advance!
Regards
That is not actually an expense for your accounts. Because it is literally a deposit, it is stated on a temporary account, but you will 'normally' get it back at some point.
If it turns out that you get less back due to damage or whatever, you can enter the amount you get back as an expense.
So I don't actually have to record it?
Thank you!
Not as a sole proprietor, no. Otherwise, it would have to be included in your balance sheet (company), but as a sole proprietor, that balance sheet is irrelevant.
So no, nothing to do with it.
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.
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