Since some invoices are entered in one year and paid in another, there is a constant balance right? I haven’t closed 2011 so the sales tax payable balance is carried over on 2012. My accountant wants to do a GL entry for that balance to Cost of Goods sold. If I closed out 2011 would it do anything to that?
Sales Tax Payable is set-up as Balance Sheet Liability Account.
So, even if you close the year, it makes no difference. You should still be able to use that account to pay to Sales Tax Authority on due date. To put this in another perspective, you have Bank Account and it is set-up as Asset account on QuickBooks. Just because you closed the year, that does not mean you will not be able to use that account for usual deposits and withdrawals