How to enter an expense associated with a liability

Ilona Kovacs

Zappy

This completely wrong. GST is NOT a business expense. You need a qualified certified bookkeeper to get you up to speed.

Davo

Zappy

Dave I wouldnt assume its company or income tax. Reference was made to the Tax Payable account or GST. I already mentioned its a job for the bookkeeper or accountant

Ilona Kovacs

Thanks - I agree with your explanation. My question is how do I do that in Reckon? I have created an Account called Tax Payable - I credit that - how do I debit the expense? If I do it from the Tax Payable account then I am unable to make the payment. I can’t work out where I debit Tax Expense - from which account do I do that from? Sorry - I hope I am getting my point across?? Unfortunately my accountant doesn’t do Reckon. I appreciate your help Ilona

Ilona Kovacs

Sorry - not talking about GST - talking about Income Tax

Ilona Kovacs

Its not the fundamentals I am struggling with - its how to enter it into the software ??

David M

When you put the entry in the Tax payable account, the category you charge it to is Income tax expense.
When you pay the tax from the bank account, the transfer account will be Income Tax payable.
Unless your accountant has and is being very valuable to you, I would find a new one, who understands Quicken. You clearly need help with both accounting concepts and practical use of the software.

Zappy

David the software is called Reckon. Quicken hasnt been used for four years. Illona if you insist you could enter the tax payable as a bill. David your comment about the Accountant is correct. He sounds like a 24k dud.

Zappy

If you insist you can enter a bill with the top line as the expense and a second line for the liability as a minus. The net will be nil. Honestly it is not this complicated. And I would fire your accountant if you were I