Hi Jennifer, another question for you… how do you record and handle prepaid sales tax. This is tax we occasionally pay to vendors for job materials that we turn around and tax our customers for the same materials.
I’m currently tracking on an Excel spreadsheet, and then take the adjustment at the Pay Sales Tax Window. Is there an easier way to track this in Quickbooks?
I’ve read two totally different ways to track these taxes, one by a Current Liability Account and another by way of other Current Asset Account.
Hoping to hear your recommendation, along with your excellent explanation!!