Skip to main content
May 20, 2019
Question

How do you account for GST on a cash basis if the bill is paid in installments?

  • May 20, 2019
  • 1 reply
  • 0 views
Original commenter did not share additional details

1 reply

May 20, 2019

Hello, trevor-lindley.

 

 

If your accounting method is cash basis then your bills are paid in installments, you’ll report GST based on the payment made. For instance, in May, you have a bill for 1000 then the GST rate is 6%, for a grand total of 1060. You made a payment in May for 424 and June for 636. In cash basis, you owe two GST tax payments, $24 for May and 36 for June.


It’d be best to check with your accountant as well for recording this process properly.  
 

Stay around if you have other questions concerning QuickBooks.