Adding Tax (when I don't use Wave for invoicing)
raenold
Member Posts: 3
Hi all,
I invoice and receive payment through my CRM tool, but do bookkeeping in Wave. All of my PayPal transactions show in Wave, but it doesn't show how much I collected in taxes. How can I show what I need to pay in sales tax without adding it to each individual transaction? Any way to record a lump sum?
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Comments
@raenold,
The way I handle this with clients that use an outside system to track sales tax is to expense the sales tax payments. Since the receipts you are recording have sales tax in the gross it would be fine to expense your payment or categorize against sales. Depending on when sales tax payments are made, sometimes you can have a timing issue. For example, sales tax may not be paid until January for receipts collected (included sales tax) in December. In this case, if you are able to determine how much sales tax was collected in December, you could post a journal entry to expense sales tax and credit sales tax payable. Then, when you make the payment you split the payment between sales tax payable and current expense. Hope that helps.
Thank you! I will try this.