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Dalma3
Oct 20, 2024 3:10 PM UTC
Question

Sales Tax Liability Report Incorrect (if using Shopify and QB)

I am a CPA who has a small business that does sales via Shopify as well as custom invoices/sales in Quickbooks.

 

For the Quickbooks invoices, sales tax transactions appear to be recorded correctly.

 

For the Shopify transactions, so many things are incorrect:

 

1) The interface has all of the tax owed to Texas sitting in the "Shopify Sales Tax" liability account instead of the "Texas State Comptroller Payable" account. 


2) The Sales Tax Liability Report is INCORRECT and should not be used for sales tax filings. It has the following 3 things wrong:

  • #1 It is including all of Shopify revenue in Gross Total, including NON-TEXAS sales.
  • #2 It is also including sales tax collected in the Gross Total, which is incorrect.
  • #3 It is including all Shopify revenue that had $0 tax collected (ie: in other states where we don't have nexus, which is why $0 was collected) in the "Non-Taxable" column)

3) After a painful manual calculation, I paid the state comptroller what was correctly due. I then had to split the transaction to debit the Shopify Sales Tax account as well as the Texas State Comptroller Payable account when I was categorizing my bank transactions. I got the error "You have either selected a tax liability account on a transaction where it's not allowed, or haven't specified a tax rate along with it." I researched this board, and it told me to go to the Sales Tax section of QB. The problem with that is that it is only picking up by QB-related sales tax that is sitting in  the "Texas State Comptroller Payable" account, not the liability also in "Shopify Sales Tax".

 

My biggest concern right now is - how do I clear the payable amounts in the two liability accounts since I am unable to do so manually when categorizing bank transactions and also apparently unable with the Sales Tax section of QB?

 

I am a CPA, and this is a nightmare. Quickbooks should do better than this, especially with a large platform such as Shopify. 

4 replies

Heide DC
Oct 20, 2024 4:50 PM UTC

Managing liability accounts can certainly be challenging, particularly when usual methods such as categorizing bank transactions or utilizing the Sales Tax section aren't working as expected, Dalma3. I’m here to help navigate you toward the right support to resolve your concerns quickly and efficiently.

 

We can ensure proper integration between the two platforms and regularly review the tax settings to correct the sales tax liability report. Allow me to route you to our customer care team. They have the tools to check your account in a safe environment and provide reliable information.

 

To proceed, please follow the steps below:

 

  1. In your QBO account, select Help (?).
  2. Choose the Search tab. You can also directly select Contact Us.
  3. At the bottom of your screen, click Contact Us.
  4. Type your concern. Then click Continue.
  5. You can Callback, make an Appointment, or Chat to connect with us.
  6. Kindly fill out the provided fields, such as your First name, Last name, Email address, and Phone number.
  7. Depending on what you choose as your way to connect with us, click Callback, Schedule an appointment, or Chat.

 

 Support hours for Simple Start, Essentials, and Plus subscription are available from 6 AM to 6 PM PT, Monday to Friday. On Saturdays, 6 AM to 3PM PT. For Advanced users can access support any time.

 

Additionally, QuickBooks offers a selection of payroll reports. It will allow you to see your employee's total earnings, deductions, and tax details over time. 

 

I appreciate you taking the time to share your query in the Community forum. Should you have further concerns about managing your sales tax with Shopify or need assistance handling your transactions and reports, please tag me in the comments. Rest assured, I'll provide prompt assistance.

calbacreek
Feb 12, 2025 10:37 PM UTC

Why are you referring to payroll tax reports when the OP is clearly asking about SALES tax? I have this same issue... tax for Shopify transactions is accumulating in a different payable account and did not appear in the report I usually use from Quickbooks to complete my company's sales tax return. So, today I discovered the issue and realized we have underpaid sales tax significantly for 2024. 

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