You are just restating the premise, not answering the question. The Quickbooks question of interest is how can you force the Sale Tax Payment function in Quickbooks to act on an accrual basis when the business is on a cash basis? On our system, Quickbooks performs the Sales Tax Payment function on a cash basis, and I assume that is because the company books are set to cash. This is a case where Quickbooks should give you a choice, because sales tax reporting rules have no relationship to what your own reporting basis is.
I would like to keep the focus on the Quickbooks question as stated above, but as a matter of fairness, what the State does by collecting on an accrual basis doesn't strike me as fair, and it certainly is NOT pro-business. The State wants to collect tax before the business collects the tax. As a matter of cash flow alone, that can only hurt businesses. You sell a $100K computer and incur a $8.5K sales tax on that sale. State collects its $8.5K right up front. Now the business to whom you sold this stalls payment for 60 days and then short-changes part of the payment. The State wants you to prepay what you haven't even been paid, then it wants you to go through hoops later to explain why you get some of that money back on a later sales tax return. If you are on a quarterly cycle, you can easily end up stretching out your partial recovery of the overpayment to six months. Common sense tells you that a certain number of businesses will fail simply because of the burdens that unbalanced cash flow places on them. The State loses revenue from those businesses failing as well, but my general impression is that most State governments are filled with extremely stupid people who are not even conscious about what a business is or what it requires to thrive, and seem to act like businesses are money trees that exist only to help them cover up their inability to balance their own government budgets. :) The example you use is with a car loan is bad, because in a loan situation the seller is paid in full by the lender up front. In fact most long term leases or loans *accelerate* cash flow to the seller, not stretch it out. It is a lender - NOT the seller - who must deal with cash flow issues for that example. The lender is not responsible for paying the tax, and the lender makes a percent on the loan itself, which already includes the sales tax (i.e., they are in the business of making money when people do delay paying a capital purchase amount).
As one example of this government-bred stupidity: Consider that a small business with about $100K in cash assets cannot make a $3M sale with a long payables cycle at the end of the sales tax reporting period without wiping out all of its available cash and throwing the company into disarray. Is the State better served by bankrupting the company and accelerating one miserable payment by 30 days, or is the State better off by creating the conditions in which the company can continue to make $3M sales repeatedly, each of those generating more revenue for the State? The fact that a State government would prefer to throw businesses into cash flow disarray rather than creating conditions for their continued success shows just how short-sighted most State governments are, and how they fundamentally don't understand the environment they regulate at all. The behavior is defensible only if your definition of the long term is 30 days.