How to record exceptional costs

Question asked by Sam Hopwood 3 months ago

Our greyhound rescue charity has incurred significant costs this year to refurbish the kennels. In line with previous advice from our accountants, they don't want this to go on the balance sheet because it is not a 'new' asset, just in effect a repair. However, our bank have requested when we send them our year end management accounts reports, to split these refurb costs out as 'Exceptional' or 'One-off investment costs' and show them below the normal profit line or EBITDA as investment expenditure. Is there anything already set up in ClearBooks to account for this type of expenditure? Or do I just put the cost in Repairs & Maintenance in the P&L and manually split it out in the report to the bank?

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Hi Sam,

Unfortunately, we don't have anything specifically in Clear Books for exceptional costs. You can create a new account type under Settings > Accounting > Account codes for exceptional costs under 'Other expenses', and a new account within that account type for the one-off investment expenditure.

However, the management report will show these costs after operating profit. You may have to adjust the Profit and Loss report that you send to the bank.

Tommy

Best answer
3 weeks ago

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