How do you account for an HST refund that was received from the previous year (file annually for my partnership) after just starting with Quickbooks Online?
My startup business (partnership) stared using QBO in June 2016. We file our HST return annually to coincide with mine and my partner's personal tax returns (50/50 partnership). Our accountant filed our 2015 HST prior to starting with QBO. We received a refund after starting QBO and the refund was deposited in the company's bank account.
After searching the QBO forum and google extensively I can't find an answer how to accurately post these funds. Every answer says use 'file sales tax' feature when filing your HST return.
1. How do I account for the refund that was deposited into the bank? To my limited knowledge of accounting, refunds are not considered income by the CRA.
2. Secondly, when I run my HST summary report, 'partner contributions - equity' amounts show as 'Revenue and Other Income' (line 101) for some reason. But my P&L is correct with my sales and revenue numbers. I've checked my accounts and everything is set up correctly. Is this just a QBO quirk? Our accountant did not include 'partner contributions' on line 101 when she filed our 2015 HST return.
Any insight to either of these issues would be greatly appreciated. Thanks kindly :)