Chart of Accounts - Change Xero's default Entertainment ledger codes
Chart of Accounts - the ledger codes (a) Entertainment-100% business and (b) Entertainment-0%. Can you change these categories? We accountants all know that the descriptions are misleading.
Almost all (unqualified) bookkeepers use (a) for client entertainment and claim VAT. Subsequently, accountants blindly treat this category as business expenses, reducing the taxable profit. (i.e. wrongly deduct it for corporation tax purposes) I cannot tell you how many cases I've seen in the past few years.
Please change the default categories to (a) Staff-only entertainment and (b) Client entertainment?
Ray Wootten-Williams
shared this idea
Hi Ray, appreciate your raising this through product ideas.
We'll get a sense of the interest in changing this within the default chart of accounts from the community here.
Just to confirm, while Xero offers a default chart of accounts, you can import your own chart of accounts to set these up as you prefer, or edit individual accounts within Xero.
-
Elyana George
commented
Hey,
I’ve found it helpful to keep entertainment expenses organized under a clear account rather than mixing them with general event costs. This makes tracking easier when reviewing what was spent on meals, activities, or guest entertainment. For streaming and entertainment ideas, I also came across https://castlleapps.pro/ as a useful option to explore.
-
Sarah King
commented
I agree with Ray, it would make sense and make it far easier for everyone to understand if the ledger descriptions meant what they said.