Sales tax penalty

DidierADidierA Member Posts: 2
Hello,
How should I record a sales tax penalty (late payment) in my accounting so the sales tax report balances correctly?
Thank you

Comments

  • MikegMikeg Member Posts: 995 ✭✭✭

    @DidierA,
    If you do not have one, create an expense account Penalties under operating expense. Split the payment so that the tax payment goes against the liability and the penalty would be categorized under Penalties.

  • DidierADidierA Member Posts: 2

    Thank you!

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