During meetings with clients this question has come up several times and can be a bit tricky if you are a small business owner. It use to be that if you had a meeting with a business client you could claim this as a business deduction. With the change of technology and the business world becoming more and more increasingly mobile, client and work meetings are often held in cafes and restaurants while eating and drinking. The rules have changed and consuming food and drinks in the city you live in is no longer a business expense unless you are registered for Fringe Benefit Tax with ATO.
To avoid this and normally a small business owner would, these expenses need to be treated as entertainment costs in your business accounts. You can set up the account and call it Non Deducted Entertainment account and for tax purposes you cannot claim back the GST paid. I always advise my clients to keep detailed records and note on your restaurant receipt the business purpose of the meal and who attended should their accountant query the costs at a later date.
For all your small business bookkeeping needs contact Jaleana Gray from Bookkeeping Fairy Perth on 0400 10 23 58 or bookkeepingfairy@eftel.net.au. Check out my website http://bookkeepingfairyperth.com.au
Accounts Payable Management, Accounts Receivable Management, Accrual Adjustments, Profit and Loss, Trial balance, Balance sheets, Month End processing, Bank and Credit Card reconciliations, Budgeting and Forecasting, Installing and Setting up MYOB systems.