Chart of Accounts

Hi there, @nikki26.

Allow me to ease your confusion on setting up the suspense account in QuickBooks Online (QBO).

The suspense account is automatically created once the VAT feature is turned on in your QBO account. And it is a liability account that records the VAT returns and payments.

You might want to check out these articles to learn more about VAT:

• VAT: Getting Started.
• Manage VAT payments in QuickBooks Online.

Please know that I'm just a reply away if you need any further assistance setting up accounts in QuickBooks Online. I'm always around if you need any help.

Thank you for your reply, we are VAT exempt due to being a public entity. The question being is it an asset or a liability in the balance sheet.

Thank you