Tax forecast


Companies typically have a tax expense (P&L) and tax liability (balance sheet).


Tax expenses are typically recognized in December, creating a corresponding liability on the balance sheet. The liability is removed once the tax is paid.

You can use if statements to create a forecast with different properties for each month of the year.

Note that journal entries for tax expenses are typically first input halfway through the next year, as the accountants finalize the annual statements and estimate the correct tax expense. This can make it tricky to forecast the liability that requires an upcoming payment. For this reason, we recommend creating a journal entry with the expected tax expense for the year. This allows you to import the expected liability into Francis easily. In this case, the accountant must only create a journal entry with an adjustment rather than the full amount.

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