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provincialmoving
February 26, 2023
Question

How to deal with taxes on bank deposits

  • February 26, 2023
  • 1 reply
  • 0 views

Our payment processing company drops Visa/MC deposits into our bank every few days.
Because we are service based 99% of our revenue is GST only, so by default we have QBOL setup to only have GST.
However once and a while we sell some materials to the client, so we need to go add some PST to the mix.

Our current solution is.
1. Find what group the payment processing company put the customer payment into.

2. Go to QBOL and find the corresponding bank deposit.

3. Create a new line in the deposit and break it out so PST gets calculated. (see picture below)

 

Is this the proper/recommended way to accomplish this in QB?

Thanks

 

1 reply

J
JamesM4
February 27, 2023

Hi provincialmoving,

 

It's great to have you connect with us in the Community. QuickBooks is a robust program that allows you to manage your income and expenses with ease. I'll be glad to point you in the right direction from here. 

 

The screenshot you sent above solidifies the fact that you're using the right method to record your PST. Adding the PST rate in the Sales tax column allows you to track your PST when tax time comes. If you'd like to learn more about sales tax in QBOL, I encourage you to check out this article here that provides more info. You're also more than welcome to consult your accounting professional for expert advice on recording and managing your sales taxes. 

 

In the meantime, feel free to ask other questions. I'm here to help you achieve your QuickBooks goals. 

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