How to account provisions for future expenses ?
Hello, I'm putting aside a fixed amount of money each month for my small business to pay for a large expense at the beginning of each year. It remains on the current account, so at the moment it is considered in the profit&loss. My financial year ends 30/06/2018, but the expense will only be paid in Feb 2019. I would like to show that it is not profit, but a future expense. How should I do it? Can I make a transaction between the income account and a current liability account (like an accrued expense)?