Recording tax payments in QuickBooks and then matching them with the bank transactions can be straightforward provided one follows the correct method. Tax is usually deducted in the form of Service Tax or VAT. It is seen as the liability of the taxpayer and must be paid. QuickBooks creates three tax agencies by default. They are known as ‘Value added tax’, ‘Service Tax’, ‘Central Sales Tax.’ To record the tax payments and understand its procedure, follow the steps shared in this blog and execute it as required. One can also connect with quickbooks customer service number experts for the same.
Steps for recording the tax payments in QuickBooks Online
Login to the QuickBooks Online software.
- After that, the users need to click on the ‘Taxes’ tab present at the left.
- Clicking on the same will navigate you to the ‘Tax Centre.’
- Click on ‘Tax Dropdown Menu’ and select any of the following. (GST, Service Tax, VAT, CST, or more)
- After the select ‘Returns’ section and then enter the period (time) for which you wish to enter the payment
- Click on ‘Action’ located just beside the ‘Period’ column
- Now you need to click on ‘Record payment’. You can do so by selecting it from the drop-down menu
- Depending on what type of tax record payment you wish to do, you will receive a payment window.
- For recording the GST, users can enter the ‘Payment account’, ‘Payment date’, ‘IGST’, ‘CGST’, ‘SGST’ amount and Memo
- For recording the Service Tax, VAT, CST, you need to enter the ‘Payment Account’, ‘Payment Date, ‘Payment Amount’ and Memo
Once you provided with the necessary information, click on Save so that it saves your transaction.
- After you have recorded the tax payments, you can now match it with the bank transactions. To do so follow the given steps
- Click on ‘Banking’ and then select your bank account.
- Select ‘For review’ and then search for the tax payment
- If both date and amount match, then you can download the transactions
- If you see the difference, then click on ‘Find Match’ and then on ‘Match Transactions’
- Select the date range and then the transactions
If you come across any error while executing the above steps, then you must contact
quickbooks technical support and have a word with the experts in this matter.
Read more: quickbooks support number
Source URL: How to record tax payments in QuickBooks