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info1213
February 22, 2023
Question

Confusing CRA Transaction

  • February 22, 2023
  • 1 reply
  • 0 views

Hi All

I'm new here and I'm now just taking over my corporate books so I have a lot of questions.  I am currently taking a course to help me through this process but I have come across one transaction that is stumping me and it has to do with a CRA Refund.

I filed my GST last quarter and had a refund coming for simplicity sake lets say it was $1000 at around the same time I filed my Corporate taxes and owed $500.  They deposited the difference in my bank account of $500.

My question is how do I record this transaction.  Here is my thought.  

Create a Journal entry as follows.

Credit my GST/HST Payable Liability Account for $1000

Debit my Corporate Tax Liability Account $500

Debit my Bank Account Asset $500.

Does this sound right?  

 

Lastly, in my Taxes module where it says record refund does that drive an actual journal entry or is that just checks and balances to make sure you are on top of everything? I don't want it record the refund here as well as that would make a double entry to my journal entry.

 

Thanks 🙂

 

T

 

1 reply

T
Trish_T
February 22, 2023

Hi info1213,

 

Welcome to the QuickBooks family!  It's important that you're able to record your sales tax payments and refunds accurately in QuickBooks Online.  I'd be glad to assist!

 

The QuickBooks Sales Tax module provides everything you need to record your payments and refunds and avoid duplicate entries.  Here's how to record the refund;

 

1. Open Taxes and then Sales tax from the left menu

2. Select the Filings tab

3. From the All returns drop-down, choose Filed and paid

4. In the Action column, click on the ▼ dropdown menu and select Record refund

5. Enter the account in the Refund to field, the Refund date and the Amount

6. Hit Record refund

6. Once completed, you'll see the transaction in your Account history in the Chart of accounts.  Here's a helpful guide for your reference, to assist with filing sales tax in QuickBooks Online.

 

Feel free to reach back out with other questions.  We're always happy to help!

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info1213Author
February 23, 2023

Hi Trish

I'm not sure that this works in the situation I presented.  In my particular case the refund does not equal the filing as CRA deducted the Corporate taxes due from my overall refund.  

Hoping you can advise further.

Thanks Trish

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Amanda-B
February 23, 2023

Hey there info1213,

 

Thanks for reaching back out! Making sure you're recording your transactions properly is an essential step for maintaining clean books. I would be happy to point you in the right direction. 

 

To ensure accuracy in your books, I recommend reaching out to an accounting professional for expert advice on creating these types of transactions. They'll be able to guide you in choosing the correct transaction type as well as which accounts to affect so that your accounts can end up with the right balance. You can add your accountant to your books by going to the My Accountant tab of your QuickBooks account. You can also find an accountant that has experience using QuickBooks near you by clicking on the Find a pro to help option in that section. 

 

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

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