I've been categorizing tax payed on sales as an expense. I just set-up the tax centre on Quickbooks. Do I have to switch each tax payment from an expense to PST Suspense?

Hi pizzabistromain,

Congrats on setting up the tax centre! I hope you've had a chance to take advantage of the powerful sales tax tracking to save time on your returns. QuickBooks Online uses some fairly advanced techniques to provide accurate information on each line of your return, so adjustments like this should be recorded a certain way to keep things balanced. I'm here to help you out, and I'm confident we'll have no problem getting this sorted.

Before we dive into it, it's worth understanding how QuickBooks Online uses the Suspense account. This account is where payments (including instalments) and filed returns are tracked. Any time you mark a return as filed, we automatically transfer the amount from the Payable account to the Suspense account. When you make a payment, it decreases the Suspense account accordingly and communicates to the tax centre which return it's for. In order to maintain consistent records, it's best to work with this behaviour. If you already have the liability recorded, t's just a few easy steps to get your tax liability into the Suspense account:

1. Head to your Taxes tab and select Sales Tax.
2. Click Prepare return and ensure you have the correct Dates entered. 
3. Click Adjust to make changes as needed.

Typically, the adjustment account selected should be the one you've been using to track the sales tax liability. Once you're ready, click Mark as filed then you'll have the option to Record payment in the tax centre. If you aren't sure which account to select, or would like additional help addressing the expenses, reach out to your accountant. They're well-suited to help you make sure everything lines up and avoid problems going forward. You can easily invite your accountant as a user to approach this together. To search for a pro in your area, simply head to the My Accountant tab in QuickBooks Online then click on Find a pro to help. 

Feel free to reach out if there's anything else I can help you with!