I appreciate you reaching out to the Community. I want to make sure you get the best answer on how to enter the transactions.
I recommend contacting an accounting professional. If you're not in contact with one, I encourage searching for one on our website using this link here. Doing this will help prevent any future discrepancies. Let me know if you have other questions. I'm here to assist.
Thank you JamesM,
The reason I posted here in the community and not to ask for your team support as this is just basic JE entries that I need some directions,
The whole year i have only between 10 to 15 sale in my business, hiring an accountant will not make the cut as my business is straight forward. I need is to have some advise to how to record that.
I did not find the answer a benefit at all to the person who asked it. I also would need to know this as I am new to QBO.
There shouldn't need to be an accountant involved. Is this not a simple entry that can be done to show funds taken out of the Bank Account and into the Cra.
I can shed light on the direction given in this thread to make sure that everyone is able to get the guidance needed to work with and record corporate income tax in QuickBooks Online moving forward. I know how important it is to account for these kinds of details, so I want to ensure everyone is on the same page with how to proceed.
QuickBooks Online doesn't have a built-in feature for working with corporate tax details, which is why speaking with an accountant is ideal for this situation. While QuickBooks Team members like myself can direct how to find and operate the features for creating journal entries, such as outlined in the Create a journal entry in QuickBooks Online article, we cannot advise on which accounts to pick on those transactions. It's important to us that you have precise information for handling these transactions, and as we're not trained in accounting, we won't advise on those kinds of choices.
That's one of the reasons we keep working with an accountant in QuickBooks Online as simple as possible. The My Accountant tab offers you the option to invite an accountant you're already working with to your books as a user or you can use the Find a pro to help button to search our database of QuickBooks-certified accountants.
You may also get input from other users here on this thread or throughout the forum, but I always recommend checking with an accountant anyway to ensure that you have the best solution for your books. That way, you can have confidence when your submitting your remittances and reviewing your financials.
I hope this helps bring clarity to the options. Feel free to submit feedback about the features available in QuickBooks Online using the steps outlined here: How do I submit feedback? The feedback is forwarded to our product development team to consider for future updates to the program. You can also keep an eye on our QuickBooks Online Product and Feature Updates page to learn about new additions to the software.
I hope you enjoy your week!
I did not interpret this question as a "Tax" question that requires an accountant either.
It is a data entry question for entering payment of business income tax. It's no different than entering GST, PST, HST or Payroll tax remittance/payment information except that QB/QBO has not set up Income Tax like it has the other tax payments.
Users don't use an accountant for these other "Tax" entries and in no way should it be assumed by either side as "accounting advice".
My interpretation of the orginal question is as follows:
What journal entries do users complete in order to record:
1. Corporate Income Tax Due-(from tax return)
2. Corporate Income Tax Payments
This is very important information and a compulsory bookkeeping task! I am shocked that Intuit does not have any reference to it or include it in their packages....All of North American business & citizens are required by law to complete Income Tax returns! It is the culmination of all bookkeeping tasks in a fiscal year.
I am hopeful that Intuit will take this under serious consideration! Bookkeepers should not have to Google search this question at all!!
These entries are usually given by the year-end accountants. They are not tax advice. However, accounting knowledge is required to make these entries.
If you are making corporate tax installments for the current fiscal year, you will make the following entry:
DR Corporate tax payable (this is a liability account and will show as negative on the balance sheet after the payments are made)
I will suggest to create two tax accounts: one for federal and one for provincial.
I will not write the entry for corporate tax expense as this entry should be given by the year-end accountant. There are few things to consider here than just creating the entry.