Sales Tax Payments in Wave

SongahmSongahm Member Posts: 2

My Sales Tax Report shows what I owe on my monthly sales tax liability. How do i show i paid my sales tax now. There is no expense line item for sales tax. I just want to be able to see my tax liability less what i paid.

edited January 28, 2019 in Accounting

Comments

  • SamdSamd Administrator Posts: 560 admin

    Hey @Songahm, recording a tax remittance in Wave will depend on which version you are using. If you are on our original system, you can show the decrease of your tax liabilities account by using a journal transaction. In order to record a government tax payment in your Wave account, here's what you will want to do:

    -Head into your Wave account and select the Accounting tab on the left hand side
    -Head over to the top of the page and select Journal Transactions
    -We'll need to create a new transaction by clicking "Add a Transaction"
    -If you are paying your tax owed to the government you will want to Debit Sales Tax Payable and Credit the Payment Account these funds were payed from (if you are receiving tax from the government you will want to Debit Payment Account and Credit Sales Tax Receivable).
    -Last step will be to delete the payment transaction from your transactions page since we've accounted for this payment with the Journal Entry.

    Of course, if you're in our updated system, this process is a little bit smoother, and you should be able to categorize the expense on the transaction page as "Sales Tax Payment to Government" followed by the tax in question.

  • SongahmSongahm Member Posts: 2

    Thanks. I do have the latest version and yes I was able to record this as you described. Thanks

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