How do you create a credit in the taxes payable account

Evbsol

I have allocated my corporation tax payment to the taxes payable account which avoids it appearing as an expense but I now have this appearing as an unresolved balance. How do I credit the taxes payable account so that my tax payment has a balance to clear to zero?

Alexia

Hi, @Evbsol.

We have an article on the Help Center about how to handle tax payments. You can find it here.

Let me know if that helps and if you have any other questions!

Evbsol

Hi. Thanks. I am not sure that helps. Sales tax seems already to have two balancing accounts for income and outgoings. Corporation tax only goes one way so I do not have the balancing account and the Tax Payable account does not seem to let me add a credit to it to balance against the actual payment from my current account.
When I read "Tackling year end like a boss" it said "You’ll record an accrual as a credit in a liability account for accrued expenses, and a debit to income statement expense account. " which seems to be what I want to do (though I know the corporation tax is not an expense) but I can't work out how to record something as a credit in a liability account.

Alexia

Hi, @Evbsol.

You can do that from the Journal Transactions page, under accounting. Go there, choose your two accounts and set the amounts for the credit and the debit. That should allow you to do exactly what you're trying to do.

Evbsol

Hi Thanks. I will try that.

Evbsol

Thanks. That seems to have worked.

Alexia

You are very welcome! ^AT