I am new to the restaurant industry and would love some best practice tips on how to categorize and tie together meal tax money received and meal tax payments made to the state. How are you setting up meal tax received (we currently have it as income) and tax payments made (we currently have it as a liability). Thank you!
Sales tax is an increase in liability when collected and a decrease when paid. Assign the collection of sales tax received to the same liability account you are paying from. If you record as you currently are (as income), you will be overstating your income by the amount of sales tax collected which you obviously don't want.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
