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SouthNapan1
April 2, 2020
Question

Quickbooks Online- Converted from Desktop Need to clear 6 years of HST.

  • April 2, 2020
  • 1 reply
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I am a bookeeper at an accounting firm.  I am new to QBO.  I have a new client that has recently converted to QBO from QB Desktop.  Client only uses the sales portion and I want to get his QBO functional.  The issue is HST account and how the filings work.  In the HST account are 6 years of transactions that need to be cleared.  If I try to file a return using dates that need to be cleared (2014-Sept 30/2019) the numbers that end up in my HST payable are very incorrrect.  So I would be back to where I started...HST payable not correct.

What are the steps I need to do to get my HST filings correct and my HST payable GL correct? 

I have watched hours and hours of online training and videos...but none address the specifics....only that you need to file the filings as if everything were in a perfect world.  HELP PLEASE!!!! 

1 reply

A
AndréB12
April 2, 2020

Hi SouthNapan1,

 

One of the most powerful features offered in QuickBooks Online is the sales tax centre. The best way to take full advantage of the advanced tracking that happens in the background of each transaction is to ensure each return is filed accurately. I'll be happy to help sort this out. 

 

Since you simply need to help the tax centre get caught up with what's been filed so far, you can most likely adjust the return for the full time period to make sure everything is balanced. Discrepancies like this are typically caused by entries posted directly to the tax liability account, without appropriate sales tax mapping. It's just a few simple steps to record an adjustment:

  1. On the Prepare return page, select the Adjust link on the far right of the line you wish to adjust.
  2. Enter the amount of tax you would like to add to the line (to reduce the line, enter a negative number).
  3. Select your adjustment account. This may be an income account for tax credits, or if your Tax Payable account is correct, you can select the Payable account to adjust the return without affecting your Chart of Accounts. Note: We recommend consulting an accounting professional to ensure correctness on this step.
  4. Select Save to save the adjustment. 

An important note about the adjustment account is that the ideal selection is usual where the tax amounts are currently recorded. Migrations will often bring additional tax payable accounts, which can be selected here as well. If your HST Payable GL account is correct, it's vital to record adjustments appropriately to avoid changing it. Check out this great article for additional information: Adjust sales tax

 

Hope this helps!

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