I do my accounting for my sked c business in Quicken. For a new activity last year I now get a state sales tax receipt monthly based on the gross sales, and I have to remit to the state quarterly.
the problem is the amounts are showing up on my income statement, which I don't think is correct. I don't have a tax item assigned to the categories, so my tax import is correct, but it doesn't seem like this should show up in my financials.
ISTR that there was a way you were supposed to deal with this, using a fictive asset account or something like that, but maybe that was only on an accrual basis, and I am cash basis. I assigned a different class to the sales tax items, so I can filter them out, but that doesn't seem like the proper approach.
I was thinking maybe when I pay the state, instead of posting an expense transaction, I should maybe use the same income category I use for the receipt, but with a negative number so that my income and expenses are correct.
scott s. .