Bookkeeping for Christmas parties, Christmas gifts and entertainment expenses
EPISODE 40
Notes
If you're running a business, you may be wondering about the bookkeeping implications of Christmas parties and gift-giving. This episode is what you need to know to stay on the right side of the law.
Having a basic knowledge of entertainment expenses and fringe benefits tax will help you to make more informed business decisions that apply not just to Christmas parties and gifts but also work lunches and gatherings.
I run over the key points to will help you make a good decision on spending your business cash on entertainment this holiday season.
I explore fringe benefits tax (FBT) - what it is, when you need to pay it and what expenses you need to pay it on. I also provide overall guidance on what constitutes entertainment under tax law, and what can and should be claimed under entertainment expenses.
Christmas parties and other forms of entertainment can be tax deductible, but there are some conditions that must be met. I run through what these are as well as the limits on spending before you need to pay FBT.
When it comes to giving gifts to employees or colleagues, there are a few things to keep in mind, including acceptable gifts, limits on what you can claim and the tax implications.
By following these tips, you can ensure that your Christmas party and gift-giving are both compliant with tax laws and good for your business this holiday season.
LINKS:
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About the
Author
Bec is a chartered accountant who worked at Australia’s big firms and banks for 15-years. Faced at a crossroads in her career, she backed herself, left her corporate job and launched Straight Up Bookkeeping. 3 years and 5 staff later, Straight Up Bookkeeping is one of Australia’s leading virtual bookkeeping businesses for creatives, with a mission to free business owners from financial stress so they can grow their empires.
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