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Caleb24
January 6, 2022
Question

Tracking sales tax from bank deposits with no invoice

  • January 6, 2022
  • 1 reply
  • 0 views

I am using qbo as my accounting system for a car wash. Our credit card transactions are grouped together and deposited once every couple days into our bank account. Since we are not creating invoices nor do we know how much each deposit will be making invoices is more work than just manually adding up the transactions and calculating what sales tax is. Is there a way to make all deposits in the account show up as taxable and record?

1 reply

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Pete_Mc
January 6, 2022

You should be getting a report from the CC vendor you're using that shows the Charge (Income) and the Sales Tax.  There should be no guessing.  If they are not showing you this info, then you might look around for another provider.

 

But separate from the CC report, are you at least running a cash register?  That should also show you the charge for the service and the sales tax added on.

 

And my final thought is if you're just charging a flat fee to the customer ($20 vs $X + Sales Tax = $20), then you just need to do the math and separate out the Tax from the deposit (Split the Deposit) to show what is owed in Sales Tax.  You need to do this for two reasons...  First, it's not your money it's the State/City's so you need to show you're separating out if they want to audit you.  Second, it's not your money so it's NOT Income.  You need to separate it out so you don't pay Income Tax on money that's not yours and you're giving to the State/City.

 

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