it is a new question.
The company expects tax refund because of SR&ED credit . If I debit A?R and credit A/p in 2018(I am filing the T2), I can offset A/r with the bank when I receive it but what should I do withA/P. Does it last for ever in balance sheet?
Just following this thread with the same issue.
If my income tax expense account balance is 0, and I post my refund it will result in a negative amount on my income statement. How do I resolve this?
Don't know Canada accounting or taxes and not to speak for Michelle, but can tell you in U.S. there is nothing to resolve unless you had previously recorded AR pending receipt of this refund. If so, then this refund should zero that out. If not, then this is properly accounted for as credit to expense in same account where you will record taxes paid next time, essentially reducing that future tax expense in total, IMHO.
Hello there @Cindy630 and welcome to the Community,
I'm glad you've joined in on this thread to explore how best to record your Corporate Tax Refund. As I'm sure you've learned by reading through the other replies, this should be recorded as a Deposit to the appropriate tax account, as per your accountant's suggestions. You may need to set up the tax agency as a vendor if you haven't already. Since this may require setting up a new account. An accountant can advise you best.
Here's how you can connect with an accountant that's QuickBooks-certified, if you're not already working with one: Find an Accountant.
I'm here for all of your technical needs when it comes to using QuickBooks. Reach out if you have any other questions. Have a great day!