Hello My QuickBooks Online Sales Tax friends!! Cash VS Accrual is a question that comes up many times when working with QuickBooks online. The sales tax section is no different. This training tutorial will explain what happens in the reports and the amount owed when you switch from cash to accrual or accrual to cash. I hope you will “like” after watching each one and please support the channel and subscribe. -Mark
Thank you but whne you record a REFUND or a CREDIT, the proportianl amount of sales tax will be reversed and recorede opposite form the sale. That will correct the sales tax owed. -Mark
Can you clarify how a company should record sales tax if they are set-up on a "Cash" accounting basis, but are reporting sales tax on an "accrual" basis?? I attempted to get an answer from QBO but they stated that if I changed the sales tax setting from "accrual" to "Cash" that it would change all of the historical invoices/transactions and would mess things up. I did check the State Tax Reporting guidelines and most indicate they should be reported on an accrual basis. Since that is how my client's account was initially set-up, should I continue to report it on the accrual basis even though they are a Cash Basis company??
There is no such thing as "set up as a cash company" You simply record transactions as they happen and the difference between cash and acrual is simply how those same transactions are classified and reported. There is nothing that you need to do. If you set up your sales tax options correctly then the sales tax center will always tell you how much you owe and how much you have to pay and when and who and so forth. That will have no effect on any of the reports you run whether you run them in the cash basis or accruel basis all the other reports will not be affected by whatever option you choose in the sales tax center. Just trust quickbooks and when you need to report on one basis or the other just adjust the settings as needed and don't worry because the transactions are the same it's just the reporting that is different Mark
@@worldwidequickbooksWhat about schedule c tax reporting? It makes you state which accounting method you are using and have to file a request with the IRS to change it right?
Hey Mark, Why do my report dates headings display dates all in one column? In other words, my dates heading on the top of the report are like this: jan feb march april ect Insted of like this: jan feb march april I need one date name per column. Thanks Mark
I assume if you contact QuickBooks Online support so they will tell you that you should try to clean the cookies in your browser or use a different browser or upgrade to a different version of QuickBooks Online I do want to help you but unfortunately those on the only reasons that I can suspect why the video would show something different
Hello My QuickBooks Online Sales Tax friends!!
Cash VS Accrual is a question that comes up many times when working with QuickBooks online. The sales tax section is no different. This training tutorial will explain what happens in the reports and the amount owed when you switch from cash to accrual or accrual to cash.
I hope you will “like” after watching each one and please support the channel and subscribe.
-Mark
Thanks
Welcome
If you give a customer a refund, would you still have to pay taxes on the sale?
Thank you but whne you record a REFUND or a CREDIT, the proportianl amount of sales tax will be reversed and recorede opposite form the sale. That will correct the sales tax owed.
-Mark
Can you clarify how a company should record sales tax if they are set-up on a "Cash" accounting basis, but are reporting sales tax on an "accrual" basis?? I attempted to get an answer from QBO but they stated that if I changed the sales tax setting from "accrual" to "Cash" that it would change all of the historical invoices/transactions and would mess things up. I did check the State Tax Reporting guidelines and most indicate they should be reported on an accrual basis. Since that is how my client's account was initially set-up, should I continue to report it on the accrual basis even though they are a Cash Basis company??
There is no such thing as "set up as a cash company"
You simply record transactions as they happen and the difference between cash and acrual is simply how those same transactions are classified and reported.
There is nothing that you need to do.
If you set up your sales tax options correctly then the sales tax center will always tell you how much you owe and how much you have to pay and when and who and so forth.
That will have no effect on any of the reports you run whether you run them in the cash basis or accruel basis all the other reports will not be affected by whatever option you choose in the sales tax center.
Just trust quickbooks and when you need to report on one basis or the other just adjust the settings as needed and don't worry because the transactions are the same it's just the reporting that is different
Mark
@@worldwidequickbooksWhat about schedule c tax reporting? It makes you state which accounting method you are using and have to file a request with the IRS to change it right?
Hey Mark, Why do my report dates headings display dates all in one column? In other words, my dates heading on the top of the report are like this:
jan
feb
march
april
ect
Insted of like this:
jan feb march april
I need one date name per column.
Thanks Mark
I assume if you contact QuickBooks Online support so they will tell you that you should try to clean the cookies in your browser or use a different browser or upgrade to a different version of QuickBooks Online
I do want to help you but unfortunately those on the only reasons that I can suspect why the video would show something different