Hi there, Michelle. I can share some information about recording sales tax payments,
If you're adjusting the amount to be collected, it’s likely that the agency will still be expecting the original amount. That means you'll either be under-paying or over-paying your sales tax obligations.
It's necessary to use the appropriate account type when adjusting sales tax. That said, we'll have to set up an expense account if you need to increase your sales tax due or an income account if you need to decrease. To do that:
- Switch to Accountant view. Then, go to the Gear icon and select Chart of Accounts.
- Click New.
- From the Save account under dropdown, choose between Income or Expenses.
- Choose the Tax form section.
- Enter a name for the adjustment account and click Save.
Then, let's add an adjustment. Here's how:
- Go to Taxes and select Sales Tax.
- Enter the Tax Period Date.
- Locate the tax period to adjust, then View Tax Return.
- Click Add an adjustment and select a Reason.
- Add an adjustment date.
- Select the account for adjusting sales tax from the Account dropdown.
- Enter the adjustment amount and click Add.
I’ve also added these resources to track and manage sales tax in QuickBooks. I’m sure these will be helpful:
Let me know if you need more help in recording your tax payments by leaving a reply below. Keep safe and have a wonderful day!
