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Replying to:
mbirdthatflies
Level 1

keep track of sales tax I owe

This was my question to my accountant and her answer: 

How am I sure that QB keeps track of the sales tax so when I file Sales & use tax it’s easy for me, in other words how do I input that in quickbooks (separate out the deposit)? (where would I find that info next year?)

 

accountant answer: The $7.22 of sales tax would be recorded as a sales tax liability. Then when the sales tax is paid, the liability account is zeroed out.

 

My question is how do I "record as a sales tax liability?"  Please include the steps for how to set up the account and also how to document the sales tax in that account.

Thank you!

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