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Diane18
March 22, 2023
Question

Simple Accounting Question

  • March 22, 2023
  • 1 reply
  • 0 views

Our company owes the CRA corporate taxes for last year end.  I've paid and now I have to enter it into QB.  Does the amount owed get posted to "Tax Expense" Expense account or is it posted to the "Taxes Payable" Other Current Liability account?  I know it's a simple accounting question but I can never get this one straight.  It confuses me every time.

 

Thanks

1 reply

A
Alex M
March 22, 2023

Hi there Diane18,

 

It's important that all your transactions be classified correctly so that your books can be well-balanced. QuickBooks Desktop is a great tool able to help you keep track of money in all your account so you can view the various aspects of your financials through different reports. I can point you in the right direction for assistance with this question. 

 

In order to know how you should be entering this transaction in your books, I recommend reaching out to an accounting professional for assistance. An accountant's expertise will be able to guide you in the best choice of account to affect in order for this tax transaction to be posted correctly. If you'd like to find an accountant near you that has experience with QuickBooks software, you can check out our Find a ProAdvisor page.

 

If you have any other questions, feel free to reach out here.

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