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alara
Level 1

How can I change the calculation of the PST in BC from Cash Basis to Accrual in QBO

 
1 Comment 1
AndréB
Level 7

How can I change the calculation of the PST in BC from Cash Basis to Accrual in QBO

Hey alara,

 

Catching these things early goes a long way towards keeping things accurate, so it's great that you noticed taxes are set to the incorrect accounting method! The sales tax centre in QuickBooks Online offers some incredible tracking to simplify your sales tax filing. To give you full control over your books, the tax centre allows you to control this setting separately from the rest of the account. I'll be happy to show you how to set this up.

 

You have the freedom to manage your books using one accounting method, while using a different one for your tax filings. To switch between Cash and Accrual for the rest of your books, check out this great article: Change your accounting method

 

Something to bear in mind before making changes to the accounting method is that the amounts on your return might change. If you've already filed taxes as Cash-basis, it's possible that a few unpaid bills and invoices were missed. Thankfully, QuickBooks Online takes all the stress out of this discrepancy, and conveniently records the difference for you in a separate column labelled Open transactions. These amounts are automatically considered when you prepare the return, so you can be sure nothing is being filed twice.

 

Once you're ready, it's only a few easy steps to update this setting:

 

  1. Head to the Taxes tab on the left and select Sales Tax (if you don't have Standard Payroll, Sales Tax will be selected by default).
  2. Click on the Manage Sales Tax button.
  3. Click on the drop-down arrow to the right of Add rate and select Edit agency settings.
  4. Switch the Reporting method from Cash to Accrual, then click Save.
  5. Click Done to return to the sales tax centre.

Now you're all set to prepare your tax return using the accrual method! If you have any questions or concerns regarding the Open transactions column, your accountant will be able to help. They're your most valuable partner when it comes to filing sales tax. You can easily invite your accountant as a user so you can work together. To find one in your area, simply head to the My Accountant tab in QuickBooks Online then click on Find a pro to help. 

 

Let me know if there's anything else I can help you with.

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