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Why do none of my sales tax amounts match?

With the new Sales Tax program in Quickbooks Online, shouldn't the amount of sales tax match in each location? My "Sales Tax Liability" & "Taxable Sales Detail" Reports amounts match, but differ from my "Sales Tax Agency Payable" amount & none of them match the "Upcoming Taxes" amount. What am I doing wrong?

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QuickBooks Team

Re: Why do none of my sales tax amounts match?

Thanks for posting here in the Community, @dal1cas2

 

Here are the possible reasons your sales tax amounts don't match on the four reports using the Automated Sales Tax feature:

  • Incorrect report period is selected.
  • The accounting method you select on the reports isn't matched in the company settings. 

 

To help fix this, let's first go back to your Sales Tax Agency Payable and Upcoming Taxes section. You'll need to adjust the date range to match with your first two reports. See the screenshot below for your reference.

AdjustDateRangeInAutomatedTaxCenter.PNG

 

Once done, let's check your company's accounting method in the settings. Depending on whether you're using cash or accrual method, your sales and collected sales tax are defined differently. Here are the steps: 

  1. Go to the Gear icon at the upper right. 
  2. Select Account and Settings under Your Company
  3. Go to Advanced from the left menu. 
  4. Click the  Accounting section. 
  5. Verify your Accounting method
  6. Click Save.
  7. Choose Done

 

The screenshot below shows you the last five steps. Using a cash or accrual basis will depend on your location's governing rules. With this, I'd suggest consulting your accountant to verify which method is appropriate for your business. For more information about this, go through this article: How Cash and Accrual Accounting Affect Sales Tax

CheckAccountingMethod.PNG

 

After that, you'll need to make sure the four reports are set on the correct accounting method. The screenshot below serves as your visual guide. 

ChooseAccountingMethod.PNG

 

You can visit this link: Sales Taxes. In this article, you can learn more about setting up, recording, and tracking sales tax for products you sell in the program. It also helps you compare the settings used in the old and automated sales tax centers. 

 

I'm here anytime you have other concerns. Have a great day, @dal1cas2.

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