THE ACCOUNTS ARE NOT SETUP CORRECTLY.THEY ARE NOT SET UP TO CAPTURE GST MY REPORTS ARE NOT ACCURATE. CAN SOMEONE CHECK TO ENSURE THIS IS OPERATING AS IT SHOULD?

Hi klpearce57

I know how important keeping your Sales tax information in order is. The QuickBooks Online Sales Tax module will keep track of your sales tax collected, paid, and your ITC's once it's set up. I can help explain how to Set up and use sales tax in QuickBooks Online.

The Sales Tax module requires that it be set up before it can be used to track your tax information.

1. Click on Taxes from the left navigation menu
2. You should see Sales Tax, if you use QuickBooks Payroll you may also see Payroll Tax, choose the Sales Tax option.
3. Next, you'll need to click on Set up Sales Tax
4. You'll select the province or territory from the drop-down. You can set up more than one province, but they'll need to be done separately.
5. Follow the prompts to complete the setup. This option will automatically set up the new agencies and the most common codes for that province/territory.
6. Select your next tax period start month, then the Filing Frequency ▼ dropdown.
7. Select Reporting Method, then enter your GST/HST/PST number.
8. Select Add.

If you do business in more than one province, you can add additional agencies and taxes as needed through manage Sales Tax in the Sales Tax module.

In the Tax agencies tab, you can now see the new Tax Agency you've just created. The tax codes created are what is used on your invoices and expenses to track the Sales tax in the module. QuickBooks will now use these tax codes to determine if the Tax Payable account increases or decreases. If you collect more than you pay the account will show a payment is due on the Sales Tax page. If it's the other way and you've paid more than you've collected a refund will be showing.

When you file the Tax Report, QuickBooks will move the amount reported from the Tax Payable to the Tax Suspense account. When you record the Tax Payment or Refund, it'll then move it out of the suspense account.

On your sales and expenses forms, you'll now see a field where you'll enter the tax code. The taxes will then show at the bottom of the form before the total amount.

If you're unsure about which tax codes apply to your location or business you should check with your accountant or the CRA to be sure that you have the most up-to-date information.

If you have any questions please let me know. Have a great day!