My accounting method is set to accrual, but my sales tax return is being done on a cash basis. How can I change the return to an accrual basis?

Hey greg40,

Having the correct accounting method set is crucial to take full advantage of QuickBooks Online's powerful tax centre. It's great that you've noticed this early, as that goes a long way in keeping things consistent going forward. As each business is unique, QuickBooks is designed to give you full control over accounting methods. Cash and Accrual settings are handled separately for sales tax, allowing you to easily file your taxes using a different method than the rest of your bookkeeping. I'll be happy to guide you through this.

Since you've already set your company settings to Accrual, we can quickly change the settings for sales tax at any time. One thing to keep in mind before making any changes to this option is that it may cause differences between what's been filed, and what should've been filed. QuickBooks Online will automatically track this in an Open Transactions column of your next return, so you can rest-assured no transaction will be missed or double-filed. If you haven't filed a return yet, there's nothing to worry about. It's just a few steps to manage this setting:

1. Select Taxes from the left menu.
2. Select Sales Tax at the top.
3. Click on Manage Sales.
4. On that page, click the drop-down arrow beside Add Rate.
5. Select Edit Agency Settings.
6. Choose Accrual under Reporting method then click Save.

With that, you're all set to file your tax return using the accrual basis! I'm here for you, so let me know if there's anything else I can help you with.