Hi John, Thanks!
This looks so easy.
1) As a sole proprietor, state and federal taxes are personal? I have them listed as a business expense so it shows up on the P+L although I know they aren't deductible. Do I need to change this practice?
2) When I deposit, it asks for the bank account to deposit too. When there is actually a positive amount, it goes into the business account (of course) but when the total amount is offset for back taxes there really isn't any transaction with the bank. I didn't know how to deal with this so I put the funds into the bank register and then took them out again and then reconciled the transaction so there wasn't a balance change. This is the only way I could figure out how to categorize the income and then the tax payment but I am sure it's not accurate. Can you help me with this problem?