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In QBO, they don't have specific Account Type/Detail Type for Federal & State income taxes in the Chart of Accounts. Usually, most of the businesses, they ended using Other Expense as Account Type and for Detail Type, use Other Miscellaneous Expense.
It also depends on business type as well, some business entity will directly use the Equity account for recording taxes. You will need to ask your Accountant, what's right for your business.
Also, in QBO, there is no way to edit the P&L format either.
See the screenshots below for reference.
Hope this helps!
Hi PuraVida577,
An expense decreases a corporation's retained earnings (which affects the gross profit). You'll want to change the expense account to a different one.
Here's how:
To guide you on what category to choose, I recommend reaching out to your accountant.
For future reference, you can run a report for a specific account. Here's an article for more information: Run Reports.
Please touch base with me here for all of your QuickBooks needs, I'm always happy to help.
Yes I know how to do all this. My point is that QB does not have an option for entering TAX costs. That is the question, and hence why I asked the community, I'm looking for an answer on how to do it technically, not how to do it from an accounting perspective. I know how to record taxes from an accounting perspective, it appears QB does not have the option to do so?
In QBO, they don't have specific Account Type/Detail Type for Federal & State income taxes in the Chart of Accounts. Usually, most of the businesses, they ended using Other Expense as Account Type and for Detail Type, use Other Miscellaneous Expense.
It also depends on business type as well, some business entity will directly use the Equity account for recording taxes. You will need to ask your Accountant, what's right for your business.
Also, in QBO, there is no way to edit the P&L format either.
See the screenshots below for reference.
Hope this helps!