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nikki26
January 20, 2021
Solved

Chart of Accounts

  • January 20, 2021
  • 1 reply
  • 9 views

When setting up a chart of accounts how do you treat a suspense account is it a liability or an asset. 

Best answer by payment after leaving

Hi nikki26 Our default VAT suspense account is set up as a liability account.

1 reply

M
Mark_RModerator
Moderator
January 20, 2021

Hi there, @nikki26.

 

Allow me to ease your confusion on setting up the suspense account in QuickBooks Online (QBO).

 

The suspense account is automatically created once the VAT feature is turned on in your QBO account. And it is a liability account that records the VAT returns and payments.

 

You might want to check out these articles to learn more about VAT:

 

 

Please know that I'm just a reply away if you need any further assistance setting up accounts in QuickBooks Online. I'm always around if you need any help.

    N
    nikki26Author
    January 21, 2021

    Thank you for your reply, we are VAT exempt due to being a public entity. The question being is it an asset or a liability in the balance sheet.

    Thank you

    P
    payment after leavingAnswer
    Level 10
    January 21, 2021

    Hi nikki26 Our default VAT suspense account is set up as a liability account.

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