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tony178
Level 1

Is there a way to change the account that the automated Sales Tax Calculation posts to? It doesn't seem to allow the account itself to be modified.

The account QBO created doesn't fit my account structure or else I would simply divert all entries to that account.
1 Comment 1
MarkAngeloG
QuickBooks Team

Is there a way to change the account that the automated Sales Tax Calculation posts to? It doesn't seem to allow the account itself to be modified.

Hi there, Tony.

 

You're right, QuickBooks Online currently doesn't have the option to change the automated Sales Tax Calculation account posts to. However, I'm here to show you how you can transfer the amount to another account.

 

QBO's automated sales tax feature is designed to ensure accurate reporting and compliance. Allowing Sales Tax account modification to other account can potentially lead to discrepancies or inconsistencies of your reported data.

 

The best approach is to use journal entries to reclassify the sales tax amounts from the default account to your desired account. Create a Journal entry to debit your preferred sales tax expense/liability account and credit the default QBO sales tax account for the corresponding amount. However, it's best to consult your accountant before doing any journal entries to ensure your accounts are debited or credited accurately.

 

You can run the Sales Tax Liability report to view your sales tax info anytime to make sure everything is accurate before you file your return to your tax agency.

 

Let us know if you have additional questions about sales tax or other features in QBO. We're always here to help.

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