We use a CRM that handles all of our invoicing and billing, including sales tax collection and reporting. It doesn't sync with QB. I'm new to QB, and would appreciate help knowing how to manually enter our sales tax liabilities to our accounts and journal. For example, our CRM provides the following information:TOTAL SALESTAXABLE AMOUNTDISCOUNTTAX AMOUNT$39,261.44$36,893.12$154.73$2,213.59 How do I manually enter this in QB? Right now the only information QB receives is the total sales amount, categorized as service income. How do I account for the sales tax portion of this income?

It's good to know you chose QuickBooks Online (QBO) to help run your business, David. Ensuring the accuracy of your QuickBooks record is my priority. I know the challenges when systems aren't in sync, especially with financial data. It’s great that you're proactively seeking to understand how to handle this in QuickBooks. In QBO, we can create a sales tax adjustment to show how much you owe. It ensures an accurate reflection of your business sales tax obligations. First, create an account for sales tax adjustment. Here's how: Go to the Gear icon. Under Your Company, select Chart of Accounts. Enter the Account name. In the Account Type drop-down menu, choose Income if you need to decrease your sales tax due or Expenses if you want to increase it. Hit Save. Then, add an adjustment. Go to the Taxes menu and select Sales Tax. Enter the date range in the Due Date Start and Due Date End drop-downs, then select Refresh. Find the tax period you need to adjust, then choose View Return. Select Add an adjustment. Choose the reason for the adjustment from the Reason drop-down list. Add an adjustment date. Tap the account for adjusting sales tax from the Account drop-down menu. Enter the adjustment amount. Hit Add. For more details, check this link: Create and delete a sales tax adjustment. If you want to enter it as a journal entry, I suggest seeking guidance from your accountant. This way, they can help you choose the correct account to use. If you don't have one, click this link: Find an accountant. You can visit this article with more information on using the Sales Tax Liability report in QuickBooks: Check how much sales tax you owe in QuickBooks. Additionally, see this guide about filing your tax return: File your sales tax return and record sales tax payments. This thread is always open if you have additional questions or concerns about entering sales tax in QuickBooks. I'm always here to help.

D

davidvb1

Question

Sales Tax Journal Entries from External Source

Forum|Forum|2 years ago
June 29, 2024
1 reply
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We use a CRM that handles all of our invoicing and billing, including sales tax collection and reporting. It doesn't sync with QB. I'm new to QB, and would appreciate help knowing how to manually enter our sales tax liabilities to our accounts and journal. For example, our CRM provides the following information:

TOTAL SALES	TAXABLE AMOUNT	DISCOUNT	TAX AMOUNT
$39,261.44	$36,893.12	$154.73	$2,213.59

How do I manually enter this in QB?

Right now the only information QB receives is the total sales amount, categorized as service income. How do I account for the sales tax portion of this income?

QuickBooks Online

M

Maybelle_S

It's good to know you chose QuickBooks Online (QBO) to help run your business, David. Ensuring the accuracy of your QuickBooks record is my priority.

I know the challenges when systems aren't in sync, especially with financial data. It’s great that you're proactively seeking to understand how to handle this in QuickBooks.

In QBO, we can create a sales tax adjustment to show how much you owe. It ensures an accurate reflection of your business sales tax obligations.

First, create an account for sales tax adjustment. Here's how:

Go to the Gear icon.
Under Your Company, select Chart of Accounts.
Enter the Account name.
In the Account Type drop-down menu, choose Income if you need to decrease your sales tax due or Expenses if you want to increase it.
Hit Save.

Then, add an adjustment.

Go to the Taxes menu and select Sales Tax.
Enter the date range in the Due Date Start and Due Date End drop-downs, then select Refresh.
Find the tax period you need to adjust, then choose View Return.
Select Add an adjustment.
Choose the reason for the adjustment from the Reason drop-down list.
Add an adjustment date.
Tap the account for adjusting sales tax from the Account drop-down menu.
Enter the adjustment amount.
Hit Add.

For more details, check this link: Create and delete a sales tax adjustment.

If you want to enter it as a journal entry, I suggest seeking guidance from your accountant. This way, they can help you choose the correct account to use. If you don't have one, click this link: Find an accountant.

You can visit this article with more information on using the Sales Tax Liability report in QuickBooks: Check how much sales tax you owe in QuickBooks.

Additionally, see this guide about filing your tax return: File your sales tax return and record sales tax payments.

This thread is always open if you have additional questions or concerns about entering sales tax in QuickBooks. I'm always here to help.

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