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jvaranda
September 30, 2024
Question

Sales Tax

  • September 30, 2024
  • 1 reply
  • 0 views

I am a visual artist, set up as a LLC (partnership) in California,

 

I participated in an Art Fair. They took commissions from the sales of my work and paid the sales tax. They will be paying me the difference between the full sale minus the commission. 

 

My question is how do I log that money. It derives from sales but I didn't carry out the sales nor paid the sales tax: the art fair did.

 

How do I reflect this on quickbooks?

1 reply

L
LeizylM
September 30, 2024

Since the art fair collected and paid sales tax on your behalf, you do not need to record sales tax for these transactions in your books, jvaranda.

 

You'll need to create an income account to reflect the transaction accurately in QuickBooks. 

 

Here's how:

 

  1. Go to Transactions and select Chart of Accounts.
  2. Click on New.
  3. Choose Income as the account type.
  4. Name it something like Art Sales Income.

 

Once done, we can record the payment from the Art Fair by creating a bank deposit in QuickBooks. I'll show you how:

 

 

  1. Click +New and choose Bank Deposit. 
  2. Select all the payments you want to deposit.
  3. Go to the Add other funds to this deposit section, select the income you just created (Art Sales Income). Then enter the amount you received. 
  4. Once done, click Save and Close. 

 

If you want to track commissions, you can create an expense entry.

 

Furthermore, you can refer to these materials to learn more about reports and memorize reports: 

 

 

If you have further questions or clarifications managing sales taxes, please feel free to do so by entering in the comment section so that we can assist you. 

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