QuickBooks allows you to adjust your sales tax with ease. This saves you tonnes of time while you get ahead with your work. I'll be glad to share more information about adjusting sales tax.
If you've already filed your taxes, you can adjust it by undoing what you've recorded in QuickBooks. The process for undoing the sales tax is currently available to QuickBooks Online Accountant users. Here's a helpful article with instructions on how to do this: Adjust sales tax.
If you're not in contact with an accountant user, I encourage you to search for one on our website using this link here. You can also contact our support team using this link here for further assistance. Let me know if this info helps.
I'm not sure that is what I need.
We use CRA's Quick Method. We pay a reduced tax rate and do not include the tax credits.
Every quarter, I would like to alter QBO's calculation to reflect CRA's Quick Method instead. Can I do this manually every quarter myself?
Hi there Linda.
Thanks for clarifying how you're hoping to record your sales tax in QuickBooks Online. I know there are many who use the Quick Method from the CRA to file their taxes and being able to calculate and record using that method in QuickBooks would help with keeping things in line for your books.
At this time, QuickBooks Online doesn't have an option for using the Quick Method in the program. What I recommend in this instance is connecting with an accountant to determine if there's a workaround you can use to make sure that your sales tax is accurate and on par with what you need for the government.
To connect with an accountant, you can use QuickBooks Online's My Accountant tab. There, you'll find an invite field to invite someone you're already working with as a user to your books or you can use the Find a pro to help button if you don't already have an accountant in your corner. An accountant is a great person to have on your side as they have the training and the knowledge to ensure that your books are just the way you need them.
I also suggest leaving feedback for our product development team using these steps: How do I submit feedback? Comments left through that portal as forwarded to the development team, so it's a great way to have your voice heard and share your ideas about what you'd like to see in QuickBooks Online.
Take care and I hope you enjoy the rest of your day!
Ok Thanks Laura. We have a QBO accountant so I'll get in touch. And I will give my feedback to the product development team as well. It's taken a few months, but we are pretty much up and running in QBO and we are quite happy with it. The GST is, so far, the only thing that is causing grief. Hopefully QB will allow for alternate methods of tax reporting in the not too distant future.
You're welcome, Linda. I'm excited to hear that you're loving QuickBooks Online so far! It's great that you've taken the time to share your feedback as well as it does make a difference since it lets the product developers know what features would be useful to QuickBooks users. Feel free to stop by the community again if you have more questions. :)
Hi linda r:
If you're entering your data into QBO using the taxable flags, it will determine the 'taxes owing' on your balance sheet, and under the Taxes tab automatically. When you file your HST/GST return either through your bank or with the government directly via NetFile, you would follow the instructions regarding the quick method entering your revenue, taxes (per the rate outlined against your revenue), and any ITCs.
Once you enter that information, you'll have what your total HST/GST should have been according to your quick method election. At this point, you could then go into QBO, and post an adjusting journal entry to the taxes on your balance sheet.
Hope this helps!
Thank you for instruction. That is very helpful. I thought I had to go into Taxes and adjust the Prepare Return GST62 form. Your information sets me on a different path. Now I need to beat back the fear of journal entries, but I'll do some research on that.
I know this is a long shot as this post is a year old, but what would the journal entry look like? Would I follow through with my tax filing on quickbooks as it thinks it should be, and then after that adjust it with a journal entry to what I actually owe? How do I do this? What account would I assign the savings to? Thanks for any help!
I'm glad to see you reaching out to Community. Welcome! With QuickBooks Online you'll be able to manage your sales tax, record payments and make an adjustment when needed. I'd be happy to provide you with more information!
When you record the sales tax payment and need to do an adjustment, click on the Make Adjustment box. You can use this option whenever you need to increase or decrease the amount owed for items such as credits, interest, corrections and more. Enter the amount and a description as you see fit. Select an account to track the adjustment. If you're not sure what account to use, I'd recommend reaching out to your Accountant. If you don't have one, click here.
If one of the amounts needs to be changed on your return, you can go to the Prepare Return page and click on the Adjust link to the far right, enter the amount, choose the adjustment Account and Save. QuickBooks Online will automatically add a Journal Entry to show the adjustment. For your reference, see this article to Adjust Sales Tax.
If you have any other questions or need additional assistance, please reach back out. We'd love to help!