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How is the cost of renting an office accounted?

The cost of renting an accounting office is a confusing issue that many businesses often encounter. So what account does the office rent account for?

Accounting for the cost of renting a house, renting an office is one of the most searched keywords today. However, many people still don't know how to account. How to properly account? How to account for office rental in the right amount of rent. Let's find out how to calculate the cost of renting an accounting office in the article below.

1. Is the cost of renting an accounting office included in the cost of business management?

This is a question that people are interested in and asks a lot of questions. As a rule, the accounting at the company will be transferred to the cost of the business management at the end of the period. This applies in accordance with Circular 133 of the Ministry of Finance. In which businesses need to make specific accounting from their costs each year.

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The cost of business management will consist of two specific types of expenses. It is the cost of sales and the second type of cost is the cost of managing the business.

What is the cost of sales?

The cost of sales is the actual type of cost and is incurred during the product sales process. This type of cost will include categories such as the cost of the offer or the cost of product introduction, etc.

Other types of sales expenses such as product insurance costs. Union funding or the cost of unemployment insurance. Types of costs on labor tools or materials. The types of costs of electricity, water money, ...

What is the cost to manage for the business?

Business management costs are the second type of management expenses. This is the type of cost used to serve the stable operation of a company. This management expense will be paid for specific types of money such as paying employees' salaries or paying for various types of insurance, etc.

At the same time, management costs for the business are also used to pay for the funds for investments. Pay for the operation of the infrastructure of the enterprise office, headquarters, ... This is also the answer to the question of what office rent is accounted into?

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For companies with leases of land or infrastructure, they will cover the costs of renting an office. These payments will be included in the company's business management costs. And before payment will be approved by the management of the business. At the same time, it will be accounted for by accountants specifically to report to tax offices. Where the business is operating.

Note when accounting

A note is for the amount of money spent on the sale or management of the company. These types of expenses need to have full bill types. Or it is necessary to have a lease of all kinds of offices and accounting in accordance with the regime of accountants. Avoid accounting for rent costs without bills.

Therefore, the cost of renting an accounting office will not be recorded as reducing the cost of accounting. Instead, these expenses will be specifically adjusted in the CIT finalization to increase the amount of CIT.This is something that any company must fully implement.

2. How to account office rent to ensure validity?

Accounting for the cost of renting a house or renting an office is not easy. When renting an office or building, it is necessary to comply with the law with the company's expenses.

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However, in order to account for renting office teams, it is necessary to do it properly requires the department of each company to comply and comply with the regulations. Each business can only record the cost of renting as reasonable when full of information such as:

  • Types of invoices, payment documents, office lease contracts, ... In case the company leases the workplace infrastructure from a certain business.

  • Contracts for renting, types of payment documents, ... If hired by individual companies.

In the case of renting, taxes have been paid to the landlord. In this case, there must be a tax payment document for the local tax authorities where the company is operating.

In case of office leasing of 20 million or more

In this case, businesses need to pay attention to some issues such as if renting an office of 20 million or more must have a value-added invoice. And especially the rent must be transferred from the lessee to the lessor. Must be accompanied by a certificate provided by the bank itself.

3. Detailed guidance on accounting of office rental costs on a case-by-case basis

The following we will share some cases of accounting costs. Stay tuned for information about useful accounting costs.

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Prepayment of expenses

In case of prepayment of office rental costs. Such a case is called upfront. The accountants of the business will account under debt accounts 331, There are 111, 112.

Monthly expense payments

In this case, the accounting of office rental costs will be accounted for according to debts accounts 154, 642, 627, 641. The accounting department needs to consider to properly account.

Currently, if you have difficulty with accounting. You can refer to the accounting of the cost of renting an office on Misa. Here you will be guided and supported in all stages of accounting.

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