When I enter a retainer, should I be putting tax on it or will the tax be recorded once I add the retainer to the invoice?

Hello hbpierce,

Making sure that your transactions contain the right taxes is an important step to your bookkeeping. QuickBooks Online is a robust tool that helps you track your taxes to make the filing process easier. I can point you in the right direction.

In order to make sure that your taxes are entered correctly on your retainer and invoice, I'd recommend speaking to your accountant for advice. Their accounting knowledge as well as understanding of best business practices will be able to best assist you with knowing which of these transactions are taxable. If you would like to invite your accountant to your QuickBooks account, you can do so in the My Accountant option found in the left menu. Enter their contact info and they'll receive your invite by email. If you wish to find an accountant near you, you can click on the Find a pro to help button in that page.

If you want to learn further about how to enter a retainer in QuickBooks Online, here's an article that outlines the process of recording a deposit or retainer.

If you have any further questions, feel free to reach out to me in the comments.