Accounting Talk Accounting Talk    FAQ   Search   Memberlist   Usergroups   Register   Profile   Log in to check your private messages   Log in  Accting for sales tax receipts in Q05          Accounting Talk Forum Index -> Quicken View previous topic :: View next topic   Author Message scott s. Guest Posted: Wed Mar 28, 2007 3:48 pm    Post subject: Accting for sales tax receipts in Q05 I do my accounting for my sked c business in Quicken. For a new activity last year I now get a state sales tax receipt monthly based on the gross sales, and I have to remit to the state quarterly. the problem is the amounts are showing up on my income statement, which I don't think is correct. I don't have a tax item assigned to the categories, so my tax import is correct, but it doesn't seem like this should show up in my financials. ISTR that there was a way you were supposed to deal with this, using a fictive asset account or something like that, but maybe that was only on an accrual basis, and I am cash basis. I assigned a different class to the sales tax items, so I can filter them out, but that doesn't seem like the proper approach. I was thinking maybe when I pay the state, instead of posting an expense transaction, I should maybe use the same income category I use for the receipt, but with a negative number so that my income and expenses are correct. scott s. .. Back to top   Ads Advertising Sponsor Laura Guest Posted: Wed Mar 28, 2007 4:42 pm    Post subject: Re: Accting for sales tax receipts in Q05 "scott s." <75270_3703a@csi.xcom> wrote in message news:Xns990184DA781D752703703acsicom@207.217.125.201... Quote: I do my accounting for my sked c business in Quicken. For a new activity last year I now get a state sales tax receipt monthly based on the gross sales, and I have to remit to the state quarterly. the problem is the amounts are showing up on my income statement, which I don't think is correct. I don't have a tax item assigned to the categories, so my tax import is correct, but it doesn't seem like this should show up in my financials. ISTR that there was a way you were supposed to deal with this, using a fictive asset account or something like that, but maybe that was only on an accrual basis, and I am cash basis. I assigned a different class to the sales tax items, so I can filter them out, but that doesn't seem like the proper approach. I was thinking maybe when I pay the state, instead of posting an expense transaction, I should maybe use the same income category I use for the receipt, but with a negative number so that my income and expenses are correct. Perhaps Quicken is not appropriate for your use since it primarily reports income and expenses. It is lacking the balance sheet accounts you need to show a complete picture of your business. A sales tax payable account should be a Liability account but I am not sure how you set this up using Quicken. You can set up liability & asset accounts in Quicken but you can not post deposits for sales and post the sales tax collected to that account. You might look into upgrading to the Home & Business version of quicken or switching to quickbooks. Back to top   Ads Advertising Sponsor Display posts from previous: All Posts1 Day7 Days2 Weeks1 Month3 Months6 Months1 Year Oldest FirstNewest First         Accounting Talk Forum Index -> Quicken All times are GMT Page 1 of 1   Jump to: Select a forum Accounting Talk----------------Accounting TalkPeachtreeQuickbooksQuicken  You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum 68 Attacks blocked Powered by phpBB © 2001, 2005 phpBB Group