How do I deduct from Sales Tax Payable in Quickbooks?
(This question could probably use a better title)
My current process for paying sales tax works as follows:
I collect payments against invoices from clients throughout the month
As I collect these payments, Accounts Receivable decreases and Sales Checking* increases, naturally
At the end of the quarter, I then transfer the sales tax portion of the payments I collected throughout the month from Sales Checking* to Sales Tax Checking*
I noticed that this obviously doesn't impact my Sales Tax Payable account, which remains unaffected. How do I then account for the amounts that I am transferring from Sales Checking* to Sales Tax Checking* in Sales Tax Payable so I see an accurate representation of sales tax that I truely still owe?
Sales Checking = Cash account that is connected to a checking account
at my bank.Sales Tax Checking = Another account that is connected to a
checking account at my bank. This account only takes transfers from
Sales Checking and my state then deducts the sales tax from there
quarterly.
1 Comments
Sorted by latest first Latest Oldest Best
Write Check
Bank Account: Sales Tax Checking
Pay to the order of: Massachusetts Department of Revenue (in my case)
Account: Sales Tax Payable
Done.
This will decrease Sales Tax Payable AND Sales Tax Checking.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2025 All Rights reserved.