(QB Enterprise) Federal tax payments. What account do these go under?
December 16, 202110:28 AM
on December 16, 202110:28 AM
You know, those HUGE chunks of cash that go to the IRS every year due by April 15 (yes, and/or quarterly payments).
Does this go under EXPENSES type, is this correct? i.e.:
create under "OTHER EXPENSES" type this way? would this data be handled differently then?
I guess I am confused those huge tax payments are actual EXPENSES or not? Not sure if that would be interfering with the current years tax liability?
Federal Income taxes are not an expense but cost of doing business. Depends on your tax type of business as to where the entry will go too. If, Sch C will end up as Owners Drawings, Corp's etc. into Equity. Review this with your CPA for proper entries into QB.