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February 23, 2024
Question

Difference between gst/hst payable and gst/hst suspense accounts?

  • February 23, 2024
  • 1 reply
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what is the difference between these 2 accounts

1 reply

February 23, 2024

Hi 193514836752433, 

 

Welcome to the Community. It's important to correctly record your sales tax in your QuickBooks Online account to keep your books up to date. I'd be happy to help.

QuickBooks Online automatically adds the GST/HST Payable and GS/HS Suspense accounts, when you set up sales tax. Every transaction entered with GST/HST/QST is added to the GST/HST Payable account. The GST Suspense account should remain at zero. Following the completion of the sales tax return, a two-line journal entry is made, transferring what you owe (or what is owed to you) from the GST/HST Payable to the GST/HST Suspense account. Recording the sales tax payment transfers the funds from the Suspense account to the bank account. I hope this helps!

 

Let me know if you have any questions, I'll be happy to help.