I have a Sales Tax Liability account and a Sales Tax Paid account. How do I record my sales tax payment?

ntrotter@surface · ‎August 17, 2023

I have recently made a payment to the state board for my sales tax. I currently am tracking my Sales Tax Liability in a Liability account. I want to show this in a sales tax paid account. I paid using my checking account which is linked to my QBO. How do I record this transaction so the amount in my Sales Tax Liability account decreases and my sales tax paid account Increases?

Ethel_A · ‎August 17, 2023

Hello there.

I understand the importance of ensuring your tax payments are recorded correctly. I'll help you record your tax payments in QuickBooks Online.

Here's how:

From the left menu, go to the Sales Tax page.
Click View Tax Return hyperlink.
Choose Record Payment and enter necessary details.

If you can't find a record of your taxes, you can create an adjustment. Record the amount and reason for the adjustment. Choose a positive or negative amount and select an account to track the adjustment. Make sure not to choose the Sales Tax Payable account. I recommend consulting an accountant about the accounts to use. If you don't have one, click this link: Find an Accountant.

I'm also adding this article to guide you on how cash and accrual accounting affect sales tax: Choose between cash and accrual accounting methods in QuickBooks Online.

Feel free to click the Reply button below if you have questions about tax payments. I'm always here to help. Have a great day.

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I have a Sales Tax Liability account and a Sales Tax Paid account. How do I record my sales tax payment?

I have a Sales Tax Liability account and a Sales Tax Paid account. How do I record my sales tax payment?

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