Thank you for this. We are in Hawaii and the tax is a privilege tax that can be written off. However, I don't know how to do this in quickbooks. We are cash basis and our sales receipts add in sales tax which get auto added into liabilities. Right now I can only think of balancing this with a journal entry to debit the bank account and credit the liabilities owed. However, How do I go about adding it as an expense without it throwing off everything? I imagine adding it as an expense is how we deduct it at tax time. Or do I handle this deduction outside of quickbooks?
