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Level 2

Paying Sales Tax to the State

Why in QBO will it only show my sales tax due with the Accrual Method? We are on a cash accounting basis, QBO is set to this yet I find it irritating that it's telling me to pay way more than is actually due. I shouldn't have to adjust this every quarter. When will there be a fix for this? 

4 Comments
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Level 2

Paying Sales Tax to the State

Already did -they basically told me there was nothing that could be done. I find this unacceptable.

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QuickBooks Team

Paying Sales Tax to the State

Hello there, solanabeachbookkeeper.

 

Welcome aboard in the Online Community. Let me clear things up regarding the Sales tax feature’s accounting basis.

 

At this time, QuickBooks Online automatically shows the accounting method as accruing even if you set it up as Cash. As a workaround, you can use the Sales Tax Liability reports to determine the proper sales tax payments recorded in your account.

 

If you'd like to see the feature introduced to QuickBooks as well, I'd recommend sending your request to the development team. They're always considering customer suggestions when deciding what to include in future updates.

 

To send feedback:

  1. Go to the Gear icon in the upper right.
  2. Choose Feedback.
  3. Enter your suggestion, and click Next.
  4. Select a category.
  5. Click on Send message.

To help give you a better idea on how QBO calculates sales tax, check out this article: Set up and use Automated Sales Tax.

 

You're always welcome to drop by the Community if you need help with QuickBooks Online. Wishing you the best.

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Level 10

Paying Sales Tax to the State

@solanabeachbookkeeper

 

This is not an isolated case. Other users are also experiencing the same. I'd suggest contacting QuickBooks Online Support team and ask them to elevate your case level and have them switch to old sales tax function.
Here's the link: https://community.intuit.com/articles/1145770.

 

Related article: https://community.intuit.com/questions/1754304/

 

Hope this helps!

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Level 15

Paying Sales Tax to the State

@solanabeachbookkeeper

 

The state determines whether you pay sales tax on accrual or cash basis, contact the state sales tax office

 

If as I suspect, you are in California, bad news
http://www.boe.ca.gov/lawguides/business/current/btlg/vol2/suta/495-0672.html

Payment of sales tax is on an accrual basis and not on a cash basis.

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