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Accounting for Payment Of Sales Taxes


Let us say that we have a sales tax liability of 100.00.

To pay that from a checking account, I am probably just supposed to enter a GL transaction, crediting a bank account, and debiting the sales tax liability accounts in question.

However, how can I go about showing the payment of sales tax as an expense? My only other alternative, is to enter amounts paid as sales tax, as write-in items on the reports sent to the accountant for tax purposes, since sales taxes are deductible. That is, as I recall, exactly what I used to do, when operating a business in a sales tax jurisdiction, as I now am again.

What must I do to have some record of this--I.E. apply it to a "sales taxes paid" expense account?