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kurz_a
April 30, 2019
Question

Hi! Does anyone know how to switch the sales tax return from accrual to cash basis? It seems as if the default is accrual and I can't change it.

  • April 30, 2019
  • 1 reply
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1 reply

C
Catherine_B
April 30, 2019

Hello there, kurz_a. 

 

On the Taxes settings you can switch the Reporting Method from Accrual to Cash basis.

 

Let me show you how the easy steps:

  1. From the left menu, select Taxes. 
  2. At the upper-right corner, click Manage sales tax. 
  3. Beside the Add rate link, click the drop-down arrow and select Edit agency settings. 
  4. A side bar will open that allows you to change the Reporting method. 
  5. Select Cash and then Save and Done. 
  6. Let's verify if your sales tax return already shows as Cash basis.

     

     

     

You'll also want to check this article for more information about how Cash and Accrual accounting affect sales tax. 

 

Let me know if you have other concerns. I'm here to help you!

P
ppbookkeeping
August 6, 2020

Is there a link on how to do this on the US Version of QBO??  It does not look like it gives you the option.

MorganB
MorganB
August 6, 2020

Hi there, ppbookkeeping.

 

Thanks for bringing your question the Community. 

 

I'm happy to report there are similar steps as mentioned above to change the accounting method for sales tax from accrual to cash in the US version of the QuickBooks software. This linked article provides the steps to do so specifically for the US. You can check it out here: How Cash and Accrual accounting affect sales tax

 

Please don't hesitate to reach back out if you have any other questions. I'll be here to help.

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