What is the proper way to pay Sales Tax in quickbooks? It appears ours has been paid several different ways. Some with Bill's and Bill Payments. via entries in the register, and some via pay sales tax menu.
Also it appears that some have been paid with two different vendors. Its a train wreck IMO. I'm trying to just enter things correctly going forward. Our data file has plenty of errors from our old accountant.
Under Items> create your own sale tax item and use the salme sales tax on your invoices..and when you want to pay sales tax go to Vendor>Pay sales tax all the sales tax which you would have colloected from your costomer...
We have a single item setup for sales tax. This item records to the "Sales Tax Payable" account. I am almost certain our sales are being recorded correctly, however, most of the tax payments were not entered the way you mentioned. Approx 1.5 years ago they were entered correctly, then it appears they started to get entered as Bill's and Bill Payments. Which after reading through the quickbooks help file it clearly says
Important: Do not pay your sales tax using the Write Checks or Pay Bills windows, as this will cause errors in your bookkeeping and in your sales tax reports.
I beleive there is about a 20k descrepancy in our sales tax due. I'm not sure how to correct the entries in quickbooks.
Also, There are 3 vendors that have been used for recording and paying sale tax, I beleive there should only be 1.
