i have been wondering when i pay sales tax on expenses (office supplies, service, airtickets, so on) , should i record 2 lines e.g. computer mouse $20.00 sales tax $2.00? or too much detail and IRS is ok to record under supply total amount?
If you're not required to pay the sale tax your purchases to your state, you can just enter the total amount.
If you're required to pay the tax to the agency, you can create an item for the tax part, and assign a liability account to it. That way, you can run a report for that account when you need to check how much you owe to the agency. This method is commonly used for tracking Usage Tax. By the way, please consult your accountant about the accounts to be used in this process.
You can always go back to this thread if you have other questions.
thank you... sales tax i am talking about is something small..
like i buy office supplies item is $10.00 and paid .95C for tax... total amount $10.95. should i do $10.00 for office supply and .95C for sales tax? or just office supply $10.95 combined product amount and tax?
In QuickBooks Desktop, you can track the sales tax on the purchases you've made. Though, you'll want to seek some guidance from your accountant if you need to track it. Cause if not, you can enter the total amount, including the sales tax, when recording expenses.