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zionandsonslawncare
April 20, 2025
Question

Can I adjust my tax liability report to account for sales taxes paid by customer that was not recorded on original invoice?

  • April 20, 2025
  • 1 reply
  • 0 views

We use a third party app (Lawn Buddy) which syncs to our Quickbooks account. The first few invoices weren't recorded properly and now my tax liability report is showing $0 for those few customer sales when they indeed paid sales tax. Am I able to manually fix this issue in Quickbooks without adjusting the original invoice? We have since figured out how to record everything properly, I'm just wanting to make sure everything matches in our books.

1 reply

B
BabyB
April 20, 2025

Yes, you can adjust the amount in your Sales Tax Liability report, Zion. I'll provide a detailed guide to help you ensure accuracy in your financial records.

 

To begin with, it's important to set up an account for sales tax adjustment. Here's how:

 

  1. Go to Settings. 
  2. Choose Chart of accounts, and click New.
  3. Name your adjustment account.
  4. From the Account Type dropdown, select Income or Expenses.
    • If you need to decrease your sales tax due, set up an income or asset account.
    • If you need to increase your sales tax due, set up an expense or liability account.
  5. Select the account’s Detail Type.
    • Use Sales of Product Income for an income account.
    • Use Taxes Paid for an expense account.
  6. Select Save and Close.

 

 

After that, add the adjustment. Here's how:

 

  1. Go to Taxes, then select Sales tax.
  2. Select the tax agency, then the return period you wish to adjust. Then select Review sales tax.
  3. Select Add an adjustment or prepayment.
  4. Select the reason for the adjustment from the Reason dropdown menu.
  5. Add an adjustment date.
  6. Select the account to adjust sales tax from the Account dropdown menu.
    • Choose an expense account if you need to increase the tax due.
    • Choose an income account if you need to decrease the tax due.
  7. Enter the adjustment amount.
  8. Select Add.

 



You can also delete an incorrect sales tax due adjustment, which will be removed from your sales tax return.

 

If you're unsure about selecting the correct adjustment account, seek expert advice from your accountant or tax professional.

 

For future reference, I'll provide this article offering complete guidance on filing your sales tax return and documenting it in QuickBooks Online: File your sales tax return and record sales tax payments in QuickBooks Online.


Furthermore, optimize your workflow and increase productivity with QuickBooks Live Expert Assisted. This service gives you access to experts who can assist you in navigating the software and performing essential business functions effectively.

You can always count on us whenever you need further assistance regarding your sales tax liability. Kindly leave a comment below. We're here to lend a hand.

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