QB Never Do #5

Never use the Write Checks function to record a sales tax payment.

QuickBooks is composed of several modules, and sales tax payments/reporting is one of them. If it's used consistently and correctly, it records the correct amount of the sales tax payment. Sales taxes are a cumulative process, and if the sales tax payment function is not used consistently or correctly, QuickBooks won't be able to record the correct payment.

To record a sales tax payment:

First, compute the amount of tax owed on the sales tax return. Then, from the Vendors menu, select Sales Tax, then select Pay Sales Tax. Fill in the correct information, and make an adjustment for rounding differences, if needed.

Once the transaction is saved, go to the check register. You will see a check there with the abbreviation TAXPMT, instead of the usual CHK or BILLPMT.