Sales Tax in Quickbooks

Hello,

First thing to check is whether or not any sales tax liabilities have been paid via the Write Checks window rather than via Pay Sales Tax window. Also, check that the dates on both reports match - date through which sales tax is to be paid.

This is my problem, the client has been using QB for years and doing this part incorrectly. They have not been going thru pay sales tax until recently. They are on an accrual basis for the tax return but pays salees tax on the cash basis. They are keeping up with the money received on an excell spreadsheet and paying from it by just writing a check in lieu of using the pay sales tax feature. They now want to do it correctly in quickbooks but I cannot figure out how to fix. They are invoicing out of QB and Receiving payments correctly.

You may have to do a Spread Sheet analysis from a beginning point - say 01.01.06 on the Accrual Basis and show Sales Tax Payable vs Tax Payments {excluding the one in January made for the last quarter of 2005}, then make an adjustment in the QB S/Tax Liability account and adjust your sales figure on the next Quarterly Tax Return. You'll have to make any adjustments necessary to bring the Liability to actual so the reporting will be correct. If you are not a CPA, I suggest working with the Client's CPA to do any J/E's in the manner the CPA requires.