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Pinto13
February 7, 2021
Question

shareholders loan

  • February 7, 2021
  • 1 reply
  • 0 views

We started a new business 6 months ago and don't know a lot about Shareholder loan.

When I move the expenses to the shareholders loan do enter 5% GST or do I zero rate it.

I noticed when I printed out my 2020 GST report that the GST showed up for each transaction I moved to the Shareholders laon.

 

Is this the correct way to do it or should I zero rate each transaction?

1 reply

Rebecca R
Rebecca R
February 8, 2021

Hello @Pinto13,

 

You're doing great work delving into the world of accounting and bookkeeping! It sounds like you're making great progress and I commend you for getting your Shareholders Loan set up. QuickBooks Online makes recording taxes on your transactions a breeze, so let me give you a hand with that.

 

When it comes to choosing the appropriate sales tax code, you can turn to the CRA or to your accountant. We have an article that goes over the different codes, so please check that one out to learn more: Common sales tax codes. If you'd like more detail on how to record your Shareholder's Loan transactions, please consult with your accountant. If you're already working with one, you can navigate to the My Accountant tab and send them an invite to join you in QuickBooks. You'll also find the Find a pro to help button on this page, where you can sift through our database of QuickBooks-certified accountants and bookkeepers that are more than happy to give you a hand.

 

Let me know if you come across any other technical questions related to using QuickBooks. That's my speciality and I'd love to give you a hand. Have a great day!

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