Sales Tax Beginning Balance

Sales Tax Beginning Balance

Sales Tax Beginning Balance

If you are coming onto Lizzy and you have to pay sales tax for the previous month, you will need to do the following:

  1. Go into your chart of accounts. Around account 221.00.000 (sales tax) – you have a bunch of other sales tax accounts. Select one you are NOT using and edit it. Rename it to Sales Tax Beginning Balance. If you would rather, you can create a whole new account in this area.
  2. When you pay your previous month – go to Checking and write a check hitting this Sales Tax Beginning Balance account in the offsetting account area.

If you are paying for the month you start using Lizzy, and you need to add a beginning balance for any taxes that you collected prior to the move, please do the following:

  1.  Go to the General Ledger and create an adjustment hitting your Sales Tax Adjustment account (477/478 area) increasing the amount of money in that account and offsetting it with your equity account for the beginning balance.
  2.  When you go to pay your sales tax and you hit the button from the report, enter the adjusting account you used in the GL adjustment and the amount, so when Lizzy totals up what she has for your use on her and what you entered as a beginning balance for the month, your total should be correct.