Yes, Smartcountbooks. In QuickBooks, you should enter any applicable taxes, even if you plan to recover those disbursements from your clients.
When processing disbursements, you will typically categorize them accordingly and apply the correct tax rate where applicable. It’s important to track these taxes properly for compliance with the Canada Revenue Agency (CRA) and accurate reporting in your financial statements, whether or not you recover the costs from your clients.
Always ensure you categorize the disbursements correctly, I highly suggest consulting an accountant to ensure your records are accurate. If you don't have one, you can use our Find-an-Accountant tool to look for an expert near you.
To ensure that your transactions match with what your bank records, you can reconcile the account in QuickBooks Online.
If you have other concerns about disbursement transactions in QuickBooks, comment down below. We're here to help.
