Forums: Discussions for entrepreneurs and small business.

Anyone pay their sales tax to their state by credit card and use Quickbooks?  I`m having trouble.

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Leslie
Founder and President
Charmed Life Products LLC
Grill Charms™… The MUST HAVE grilling accessory that is revolutionizing the American Cook-out AND The perfect gift for any occasion!
Grill Charms
                                                                                                    

• Are your reminders still flagging that you are liable for sales taxes but have already paid for it.  A possibility, you paid it through a write check and not through pay bills (vendor menu). 

• Or forgot to book your payment in quickbooks (use vendor bill pay). 

• Or have made an adjustment to a prior period in error that have been paid for already (run a query report for previous quarters and see where the liability is outstanding, or run a accounts payable aging report to show you whats outstanding). 

 

• When was the last time you reconciled your sales taxes?  Are your tax rates correct and updated for each month since you last paid?

• Are your sales  (revenue earned) correct for each state, create a custom report showing sales by state (if sales are statewide)

Thanks Stan and thanks BreeAna!  I broke down and called my accountant...  (I just hate doing that because the clock is always ticking)  She helped me figure out a way around it by creating a new account called Sales Tax liablity instead of the default Sales Tax Payable.  Then it would let me "enter credit card charges" under that account.  All is well!  Thanks for being there for me guys!!!

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Leslie
Founder and President
Charmed Life Products LLC
Grill Charms™… The MUST HAVE grilling accessory that is revolutionizing the American Cook-out AND The perfect gift for any occasion!
Grill Charms
                                                                                                    

Why couldn`t you dedicate the payment to come from the credit card (similar to the bank account) when you are in the pay sales tax module?

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Kimberly Fallon
Carlisle Accounting Services LLC
(440) 225-3247
Helping Your Business Succeed!
www.carlisleaccounting.net

This is why I went to flat rate pricing.  It encourages clients to be pro-active and call me before they do something that cost them more money (either in my fees for fixing what they did wrong or in more taxes paid) later.  If you like your accountant then you might want to ask about flat rate pricing so you don`t have to sweat calling.


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Gina L. Gwozdz, CPA
http://GLGcpa.com
http://TaxTreasures.com

Paying sales tax using QuickBooks can turn into a mess if you do not use the right screen to pay for sales tax.
QuickBooks can calculate the sales tax owed using the cash (when the money is received) or accrual (when the customer is invoiced) method. In order for QuickBooks to properly calculate sales tax, you have to use either the Customers Enter Sales Receipt screen or the Customers Create Invoices (and later Receive Payments) screen.

If you record your sales by only making a bank deposit, the sales tax will not be calculated and the sales tax reports will not be useful to you. When you are ready to pay your sales tax, whether you file on a monthly, quarterly, or annual basis, there is a report that you can generate to see what is due. From the main menu bar, click Reports - Vendor & Payables - Sales Tax Liability. Be careful which dates you choose because that effects how much sales tax is due. After choosing the right dates, the amount due will show up on the last column of the report.

Next, make sure this amount equals the following screen: click on Vendors - Sales Tax - Pay Sales Tax. Again, be careful with the dates. The amount due in this screen must match the Sales Tax Payable report previously generated. When the amounts match, put a check mark next to the tax agency you want to pay and press the OK button. You can pay tax anytime and from any place round the globe via your laptop with an Internet connection, if you opt for QuickBooks hosting through a cloud computing and application hosting company. Click this link for more information- http://www.articlesnatch.com/Article/Quickbooks-Hosting---A-Wonderful-Financial-Provision/2368922