Sales Tax And Quickbooks Question

kanadaeh

I charge straight 15% HST for my area (New Brunswick, Canada) and I just started using Quickbooks this year. I don't have a problem charging for it, I just put it on the invoices and Quickbooks will record and keep track of how much I collected. My question is how do I record the HST I pay on purchases for the business expenses so quickbooks will keep track of my input tax credits and deduct the total amount from the HST I collected. This is my second year in business and last year I had to go through every receipt and figure out how much to send in. What a pain. Thanks

realpurty2

Under Reports ----> Accountant and Taxes---->Details

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MinConst

I believe this report will show you your sales tax liability. What you have charged. Seeing what you have paid is not as easy in QB. Unless you record each purchase as an invoice. If you just put in that I paid 123.40 in your checkbook and that includes the sales tax or what ever your calling it, you won't see that broken down in to a sub total and taxes paid.
I have the same problem here in NY. Any other type of business we are just except from paying at time of purchase but contractors are treated differently and have to pay the tax upfront and then are allowed to take the deduction on the sales tax form. Kinda sucks but that is the way it is. They get tax twice from most as it is such a PITA to deal with.

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Paul
Minichillo's Construction
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kanadaeh

Yes, I can get my report to show my sales tax liability but I guess I will have to go through my purchases to see what I paid. I just thought that maybe quickbooks would do that for me. I think from now I will keep track of the tax I pay when I make a purchase so when it comes time to calculate I won't have a shoe box full of receipts to go through.

Tileworks

In Quickbooks, simply create an expense account called "Sales Tax Paid Out" or something like it.

Whenever you enter a bill from a vendor, a check, or a credit card reciept, you can break down the costs into expense accounts.

For example, if I go to Lowe's and buy a sponge and a bag of grout, when I enter the reciept in QB I assign the cost of the sponge to "Supplies" and the cost of the grout to "Job Materials". Usually I roughly divide the sales tax between the accounts because I don't care about the sales tax I pay out, but in your situation, you could assign the costs to "supplies", "job materials" and "sales tax paid out".

Then you can do an 'Expense by Account Summary' for any time period you desire and get a list of when these expenses occurred, and whereso.

- Bob

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Classic Tileworks
http://www.classictileworks.com
Ohio Tile and Stone Installation Contractor in the Akron area serving Summit, Portage, Medina, Stark, & Cuyahoga counties in Northeast Ohio

kanadaeh

That sounds easy enough. I think that's what I will do, thanks

ContractorHelp

I am having trouble finding good employess, that want to work .Who else is having this issue, any suggestions?