How should I record GST and tax paid from the company's current bank accounts if the amounts paid cover the previous sole proprietorship?

Hi there david197,

Congratulations on the incorporation! Knowing how to manage your books when you change from a sole proprietorship to an incorporated company can be a bit tricky, so it helps to have all the guidance you can get during this process. I'd be happy to steer you in the right direction.

For this kind of transaction, I recommend consulting an accountant. Since the funds involved the old proprietorship, there may be a specific way to record this to reflect the situation. The same can be said for how you handle sales tax amounts that need to carry over from the sole proprietor version of the company.

Using the My Accountant tab in QuickBooks Online, you can see two ways to connect with an accountant. If you already have an accountant on your team, you can invite them as a user to give them access to your books with the tools they need to help you. If you don't have an accountant, not to worry! That tab also has the Find a pro to help button that takes you to our list of QuickBooks-certified accountants.

I'm glad that you've stuck with us as you've incorporated and I hope QuickBooks continues to meet your business's needs. Have a great weekend!