Prior period sales tax

Question:

I just installed 2013 but our business has been going for several years. I don’t want to go back and re-enter all the data, but want to start using Quickbooks fresh as of the beginning of this year.

We collected sales tax last year which is now due.   How do I show sales tax collected last year as a payable year that is due this year?  I don’t want it to show up as a negative liability.

Answer:

Normally, you just open your existing company file saved to QuickBooks Pro 2013. Is there any reason why you do not want to do that and rather prefer start all over again?

If you chose to bring your existing company file to QB 2013 >

GO to File > Open or Restore Company and locate the company file and follow the instructions. It is recommended to make a backup copy saved in USB Flash Drive.

If whatever reason, you rather prefer to start fresh >

1)      Create new “Sales Tax Payable” account under “Other Current Liability” account type

2)      Go to Vendor Center > Create New Vendor > Provide Name > Provide Opening Balance (that’s the exact amount due for payment) > Fill out the rest of vendor address information >

3)      Next Select Account Settings > Select Sales Tax Payable from the Chart of Accounts List

4)      Save

Again, you may have good reason for a fresh start but why?