I'm not an accountant or a bookkeeper by any definition. I'm running a small corp as a lending business and I do this to keep the liability separate from my personal finances.
I use quickbooks and I've learned a lot about accounting over the last year. One thing I can't seem to figure out is how to book in the taxes I just paid. I've read a lot, but im confused with all the different ideas.
1. I never paid installments and didnt have any related accounts for 2018.
2. I used Turbotax Corporate version and completed my return online with 'gifi' data pulled out of quickbooks.
3. I paid my taxes (as per the return) via my online banking.
4. For now, I have created a "Corporate Tax" expense to match the payment to something.
I'm wondering if/how it will affect retained earnings. Can I leave it as is and the expense will offset the extra retained earnings when I file next year's return?
Do I have to backtrack and record it in quickbooks in a more complicated way?
I appreciate your help.
The current issue is that I am my accountant, lol, for now.
I figured with some natural intelligence and a bit of logic I could save myself some money until the revenues/profits grow and I can afford an accountant.
Without it being official advice, do you think I'm 'safe' if I book it in as a 2019 expense (since that is how I matched up the transaction at this point)? Or am I way off?
Yes - go ahead and book it in 2019
I suggest you create 2 accounts for 'income tax expense' called 'this year' and 'last year' - that will help everyone understand whats happening.