The expenses incurred before the start of the new company are recorded as management expenses-start-up expenses, or long-term deferred expenses-start-up expenses, and then amortized (or divided into several years) after the formal start-up. But once adopted, it shall not be changed. (Long-term waiting is generally shared within five years) The accounting entries are as follows:

Borrow: management fee-organization fee

Commodities: bank deposits

or

Borrow: Long-term deferred expenses-organization expenses

Loans: bank deposits

Set up the subject of "management expenses-organization expenses", which will be included in the current profit and loss at one time after the start of business, and the tax will be adjusted when the income tax is settled at the end of the year. According to accounting, a one-time fee can be charged after opening. According to the tax law, the start-up expenses must be amortized within 5 years.

If the storefront is self-built, the ownership is its own, which is included in the construction in progress before it reaches the use state, and transferred to fixed assets when it is completed and put into use. If the store is leased, the decoration fee shall be included in the long-term deferred expenses and amortized evenly during the lease term.

Extended data:

Enterprises should account for the occurrence and carry-over of management expenses through the subject of "management expenses". This course debits the management expenses incurred by the registered enterprise, and the management expenses at the end of the credit registration are transferred to the "profit of this year" course. After the transfer, this account should have no balance. This course carries out detailed accounting according to the expenditure items of management expenses.

The start-up expenses incurred by the enterprise during the preparation period include personnel salaries, office expenses, training fees, travel expenses, printing fees, registration fees, etc. , debit "management fees" and credit "bank deposits"; Staff salaries of the administrative department of the enterprise shall be debited to the subject of "management expenses" and credited to the subject of "staff salaries payable";

Enterprises should calculate and determine the mineral resources compensation fees that should be paid according to regulations, debit the "management fee" subject and credit the "tax payable" subject; Office expenses, utilities, travel expenses and other expenses incurred by the administrative department of the enterprise, as well as business entertainment expenses, consulting fees, research fees and other expenses incurred by the enterprise, shall be debited to the subject of "management expenses" and credited to the subjects of "bank deposits" and "research and development expenditures".

At the end of the period, the balance of "management expenses" should be transferred to "profit of this year", debited to "profit of this year" and credited to "management expenses".

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