Managing business account reports, tax reports, and invoices is crucial in this era. So, to manage sales tax liability reports business owners must have the best tools for that. There is a tool provided by QuickBooks to handle financial reports named “Sales Tax Liability Report”. This tool summarizes the taxable and non-taxable sales tax reports that you have contained from the customers. In this blog, we will delve into some essential solutions that will help you fix the sales tax liability report and pay sales tax not match issue in QuickBooks.
Table of Contents
What is a Sales tax Liability report?
You can see your sales tax details at any time in the report, it allows you to ensure the accuracy of your sales tax data before filing your return. The sales tax liability report also enables you to make tax adjustments for tax credits, discounts, and corrections. Here are some steps for accessing the sales tax liability report:
- First, open QuickBooks software.
- Navigate the menu bar and select the reports option.
- After that go to the drop-down menu and click on the Sales Tax option.
- Now, select the Sales Tax Liability tab.
- Now, you can create the Report.
Fix Sales Tax Liability Report and Pay Sales Tax Not Match Issue
Follow the steps that are given below to fix the sales tax liability report and pay sales tax not match issue. In the next section, you will find the various solutions to resolve this problem.
Solution 1: Make sure that dates are match or not
You have to check the sales tax liability report to find whether the dates match or not in the sales tax due section.
- Firstly, select the Vendors & Payables report from the QuickBooks Reports menu.
- Choose the Sales Tax Liability option.
- Search From date and Remove it.
- Make sure that the “To” date on the report aligns with the date displayed in the “Show sales tax due through” box on the Pay Sales Tax window.
Solution 2: Make sure your preferences are placed correctly
You have to make sure that your preferences are the same. You can modify the basis of your STLR (Sales Tax Liability Report) if your sales tax preferences control the basis of the Pay Sales Tax Window.
- You can set your sales tax preferences in QuickBooks by going to the Edit menu and selecting Preferences.
- After that, go to the Preferences window, and navigate to the Sales Tax tab.
- Under Company Preferences, you will find the “When do you owe sales tax?” option.
- Here, you can select either the Accrual basis or Cash Basis.
- Accrual Basis is meant As of invoice date.
- Cash Basis is meant Upon receipt of payment.
- You must ensure that the basis for your Sales Tax Liability Report (STLR) aligns with your preference. If they do not match, you must adjust the report basis.
Solution 3: Audit the Sales Tax Payable Account
Follow the above solutions before going to this solution. If the last two solutions do not solve the problem then you can follow this solution and audit the sales tax payable account.
- In the STLR, you can quickly zoom in on the sales tax payable amount as a column by double-clicking.
- Search for sales tax payments, journal entries, adjustments, or checks and examine their transaction dates.
- You can adjust the dates on the transactions to affect the numbers on the sales tax liability report (STLR). Also, you can change the ending date of the STLR to include or exclude applicable sales tax payments, journal entries, adjustments, or checks.
Solution 4: Check for future-dated transactions
A future transaction may cause an issue in the Pay sales tax window by showing a lower number. Check the STLR by setting it to all dates to see if it matches the Pay sales tax window.
Solution 5: Some Other tips
- QuickBooks sets up the sales tax Payable account and records all sales tax transactions to it. You cannot delete this account, but you can rename it.
- You should begin by checking your sales tax preferences, sales tax items, and sales tax groups to ensure they are set up correctly.
- Don’t make sub-accounts in the sales tax liability account.
Conclusion
We hope that you got the solution to fix the sales tax liability report and pay sales tax not match issue. If you still face problems then you can contact QuickBooks Support.