Paying Sales Tax
When it's time for you to pay your sales tax,
Taking a Discount for Early Payment
If you pay your sales tax early or on time, you might have an opportunity to take a discount for the
Accounting for Sales Tax
When you create an invoice for a taxable sale, several accounts are affected. Not only do you increase your sales revenue account and your accounts receivable account (or cash, if it is a cash sale), but your sales tax liability account is affected as well. Then, at the end of the month, when you pay your sales tax, the liability account is reduced. Here's how a sample transaction is recorded in QuickBooks.
An invoice is issued for the sale of $100 of taxable items and $5 sales tax, for a total of $105. Here are the accounts that are affected:
Note that if the item you sold is an inventory item that cost you $60, these accounts are affected as well:
When you ultimately pay your sales tax, these accounts are affected for the total amount of your current liability:
Chapter 7. Using Time-Saving Features
What You'll Do
Memorize a Transaction
Use a Memorized Transaction
Schedule a Recurring Transaction
Change Memorized and Scheduled Transactions
Remove a Memorized Transaction
Set Reminders Preferences
A memorized transaction is a transaction to which you assign a
If several transactions go together and are used repeatedly, you can memorize all the transactions as a group, and then execute them all together.
Do you want to take this simplification technique one step further? Set up your memorized transactions as recurring transactions and QuickBooks will do the work for you. With recurring transactions you can have a reminder sent to yourself letting you know it's time to execute a transaction, or you can have QuickBooks perform the whole transaction for you. How easy is that? QuickBooks can send invoices automatically, issue purchase orders, and even pay bills.