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mbirdthatflies
Level 1

keep track of sales tax I owe

This was my question to my accountant and her answer: 

How am I sure that QB keeps track of the sales tax so when I file Sales & use tax it’s easy for me, in other words how do I input that in quickbooks (separate out the deposit)? (where would I find that info next year?)

 

accountant answer: The $7.22 of sales tax would be recorded as a sales tax liability. Then when the sales tax is paid, the liability account is zeroed out.

 

My question is how do I "record as a sales tax liability?"  Please include the steps for how to set up the account and also how to document the sales tax in that account.

Thank you!

Solved
Best answer February 22, 2021

Best Answers
jamespaul
QuickBooks Team

keep track of sales tax I owe

Hello, mbirdthatflies.

 

I'll guide you in keeping track of the sales tax you owe in QuickBooks. 

 

If you want to record the $7.22 amount separately (without using any sales transactions), you'll want to use a journal entry. If you don't have a sales tax liability account yet, here's how you can create it: 

 

  1. Go to the Lists menu, then select Chart of Accounts.
  2. Click Create +.
  3. From the Type drop-down menu, select Sales Tax Liability account type.
  4. Complete the account details.
  5. Click OK.

 

After creating an account, you'll want to record a journal entry for the sales tax amount. Simply go to the Company menu, then select Make General Journal Entries.

 

I would also recommend contacting your accountant again for the correct debit or credit accounts. 

 

However, if you want to record the sales tax amount with the sale, you'll want to ensure your sales tax is properly set up.

 

Just to give you an overview, QuickBooks automatically collects sales taxes from invoices or sales receipts. Every time you record a sale with the added taxes, your sales tax liability will automatically increase. 

 

Additionally, your sales tax liability account will be automatically created. All sales tax amount will be added here. 

 

That said,  I recommend following this article for the steps on setting up your sales tax: Set up sales tax in QuickBooks Desktop for Mac

 

After setting it up, you can start collecting sales taxes from your sales transactions. If you need to see how much sales tax you collected and owed, you can run the Sales Tax Liability report:

 

  1. Go to Reports.
  2. Hover on Vendors & Payables.
  3. Select Sales Tax Liability.

 

More details can be found here: Review sales tax reports in QuickBooks Desktop for Mac.

 

Do you need to work on other areas in QuickBooks Mac? We have articles to help you out. Feel free to browse them in our articles list page

 

I'm ready to help out again if you have more questions for the Mac platform. I'll keep this thread open so you can post your concerns here. 

View solution in original post

1 Comment 1
jamespaul
QuickBooks Team

keep track of sales tax I owe

Hello, mbirdthatflies.

 

I'll guide you in keeping track of the sales tax you owe in QuickBooks. 

 

If you want to record the $7.22 amount separately (without using any sales transactions), you'll want to use a journal entry. If you don't have a sales tax liability account yet, here's how you can create it: 

 

  1. Go to the Lists menu, then select Chart of Accounts.
  2. Click Create +.
  3. From the Type drop-down menu, select Sales Tax Liability account type.
  4. Complete the account details.
  5. Click OK.

 

After creating an account, you'll want to record a journal entry for the sales tax amount. Simply go to the Company menu, then select Make General Journal Entries.

 

I would also recommend contacting your accountant again for the correct debit or credit accounts. 

 

However, if you want to record the sales tax amount with the sale, you'll want to ensure your sales tax is properly set up.

 

Just to give you an overview, QuickBooks automatically collects sales taxes from invoices or sales receipts. Every time you record a sale with the added taxes, your sales tax liability will automatically increase. 

 

Additionally, your sales tax liability account will be automatically created. All sales tax amount will be added here. 

 

That said,  I recommend following this article for the steps on setting up your sales tax: Set up sales tax in QuickBooks Desktop for Mac

 

After setting it up, you can start collecting sales taxes from your sales transactions. If you need to see how much sales tax you collected and owed, you can run the Sales Tax Liability report:

 

  1. Go to Reports.
  2. Hover on Vendors & Payables.
  3. Select Sales Tax Liability.

 

More details can be found here: Review sales tax reports in QuickBooks Desktop for Mac.

 

Do you need to work on other areas in QuickBooks Mac? We have articles to help you out. Feel free to browse them in our articles list page

 

I'm ready to help out again if you have more questions for the Mac platform. I'll keep this thread open so you can post your concerns here. 

View solution in original post

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