Skip to main content
S
soldier-nov-2025
October 7, 2023
Question

Why is quickbooks telling me i need to pay taxes on invoices i havent been paid for

  • October 7, 2023
  • 1 reply
  • 0 views
Original commenter did not share additional details

    1 reply

    Adrian_A
    Adrian_A
    October 7, 2023

    Hello soldier,

     

    I want to ensure that the details I'll be providing fits with your concerns. With that, I'd appreciate it if you can add more details about your concerns.

     

    On what page did the system prompts you to pay taxes on an unpaid invoice?

     

    I'll keep an eye out for your response.

    S
    soldier-nov-2025Author
    October 7, 2023

    Hi Adrian!

     

    Thanks for the interest in helping me!

     

    I collect and pay sales taxes, have been for a few years. But this is the first time this has happened. 

     

    When I go to record a sales tax payment, the tax liability report will show me what I have marked as Taxable and how much I should have collected for the invoices that were paid. 

     

    I pay the taxes to my state and county (parish, I'm in Louisiana), and then record what I've paid in QB.

     

    But the tax liability report is showing me liable for sales taxes on invoice that haven't even been paid by the potential customer. Sales Tax report for the month of September 2023. 

     

    I'm baffled, nothing has changed that I am aware of. Discovered today, and it's a weekend so, customer service is not in today.

     

    Thanks for any help you can provide!

      M
      Maybelle_S
      October 7, 2023

      Hello there, soldier. I'll help you figure out why unpaid invoices are included in the sales tax due.

       

      The collection of sales tax is based on the invoices you generate. It occurs when your tax setup's reporting method is set to an accrual basis. In this case, any unpaid invoices will show in the calculation of sales tax due to your state agency.

       

      We can change the reporting method by following the steps below. Before that, we need to consult advice from your accountant to ensure everything will remain accurate after the changes.

       

       

      1. Go to the Taxes menu, and then Sales Tax.
      2. Select Sales Tax Settings.
      3. Choose the tax agency you used for that invoice and click Edit.
      4. Change the Reporting method.
      5. Hit Save to reflect the changes.

       

      I've collected additional resources about managing sales and taxes:

       

       

      I'm always around to help if you need further assistance with your sales transactions and taxes in QuickBooks Online. Have a good one, and stay safe!

      Terms & ConditionsAccessibility statement