Fix Sales Tax Liability Report and Pay Sales Tax Not Match Issue

Regarded to be one of the most paths breaking software for managing financial requisites of a business, QuickBooks is a familiar name for countless firms, accountants and business owners beyond boundaries.

From taking care of the basics to sorting the complex actions, QuickBooks gets the majority of the tasks done for you. However, at times, while working during the course of activities on QuickBooks you might face a few typical issues.

These issues can crop out for reasons that you can, fortunately, identify and resolve. One such issue faced with respect to sales tax is the data discrepancy between the Sales Tax Liability Report and Pay Sales Tax.

Solution Steps to Fix Sales Tax Liability Report and Pay Sales Tax Not Match Issue

There might be a few potential reasons why this issue takes place in the first place. But you have nothing to worry about since you are already on the correct site to find not just one solution but multiple solutions to fix this issue.

Scroll to the next sections for understanding various possible solutions to resolve data not matching between sales tax liability reports and pay sales tax.

SOLUTION 1: Checking if the Dates are Matching or Not

The first solution to start with would be checking if the dates are matching or not. To do this, you need to verify the ending date on the Sales Tax Liability Report and match it with the date reflected on the Show sales tax due field.

Below-mentioned steps are how you would proceed:

Step 1: Visit the QuickBooks Reports menu.

Step 2: Select on Vendors & Payables and click on Sales Tax Liability.

Step 3: You would find the from date; delete it.

Step 4: Via the Pay Sales Tax window, make sure to verify the to date which is present on the report and matches with the date present in the Show sales tax due through box.

SOLUTION 2: Checking Your Preference to Insert Correctly

If the first solution did not work for you, or you have already tried that earlier, then try to implement this solution which specifies checking your Preference to insert correctly.

The preferences you have set for the Sales Tax Preference directly influence the basis of the Pay Sales Tax window. However, you have the flexibility to change the Sales Tax Liability Report.

Follow the steps to execute this action of changing the Sales Tax Liability Report:

Step 1: Visit QuickBooks Edit Menu.

Step 2: Choose Preferences and click on Sales Tax.

Step 3: Find the selected basis on the When do you owe sales tax? Box. You would find this on the Company Preferences tab. It might be based on:

• Accrual basis which is As of invoice date.
• Cash basis which is Upon receipt of payment.

Step 4: Make sure that the basis you have chosen for your Sales Tax Liability Report is matching with your preference. In case, they are not matching, you need to change the report basis.

SOLUTION 3: Auditing the Sales Tax Payable Account

If both the above-mentioned solutions of matching the dates and verifying preferences do not resolve the data discrepancy issue between the Sales Tax Liability Report and Pay Sales Tax, then you need to try auditing the Sales Tax Payable Account.

Step 1: Go to the Sales Tax Payable column, and double-click on the amount in the Sales Tax Liability Report.

Step 2: Locate journal entries, sales tax payments, transactions dates, adjustments or regular checks.

The dates you would find on these respective transactions make an impact on the numbers which are present on the Sales Tax Liability Report.

Step 3: You need to include or exclude applicable journal entries, sales tax payments, transactions dates, adjustments or regular checks.

To do so, either modify the date of these transactions or choose to balance the ending date which is of the Sales Tax liability report.

Better than what it has been like while scouting solutions for data not matching between sales tax liability report and pay sales tax issue? Hopefully, the journey from the first solution to the third one was a fruitful ride for you.

Apart from the above-mentioned solutions, you can try some of the troubleshooting tips as well. Few of them are located in the FAQ section of this article so don’t forget to take a quick glance over them too.

Beyond this, if you still feel the need for more information or queries addressed, jump on a call with the experts who can assist you effectively.

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Frequently Asked Questions