Ronika Khanna walks through recording GST/HST instalments in QuickBooks Online. A $3,000 payable becomes four $750 instalments. The video shows where to enter them, which bank account to pick, and how they appear on your CRA return and balance sheet.
$3,000 (GST/HST payable for 2022 in the example).
$750.
April 30, 2023.
Ronika Khanna, CPA, CFA; founder of Montreal Financial.
montrealfinancial.ca
Hello. Today we are going to look at how to enter GST and HST installments in QuickBooks Online and I will show you how they show up on the reports. My name is Ronica Canna, I'm a cpa, CFA and the founder of Montreal Financial. And you can go to my website at montrealfinancial CA and find lots of resources for solopreneurs, small business owners to help you with your business. Okay, so let's get started.
First of all go to the sales tax tab on the left hand side and let's talk about how you enter the installments that you paid into QuickBooks Online. So we are simply, and the process is actually very simple, we are going to go to payments and here you will click on new and you will enter installment. And let's say your installment, your GST and HST payable for 2022 was $3,000. Then your installment would be 750. So choose the bank account that you are going to pay from from the drop down. And this is really important, otherwise you won't see it in the banking download and it won't match. You put the payment date of the installment. So in our case for 2023, the first installment would have been due on April 30th. So let's assume we paid it right on time. You could pay it before. If you were to pay it after this date, some interest would apply. So it's better to pay it before rather than later. But the consequences aren't necessarily significant. Depending on how much the amount of the installment is. Keep in mind that interest is owed on the amount payable. So the higher the amount, the higher the interest payable. So in terms of the filing date, you can leave this as 112023 or you could change it to December 31st. It won't make a difference to the report as long as it's within the period. And here I'm simply going to enter $750 and record installment.
And then when you go to your filing, first of all you'll see this number changed. It went down by $750.
And when you go to prepare return.
You will see that there is box line 110 which is $750. And this will correspond to the GST HST return from CRA. And you can enter this and all of these boxes as explained in another video correspond to the boxes of the actual return from Revenue Canada or if you're in Quebec, from Revenue Quebec. So that is pretty much it. On entering installments.
And finally, let's go take a look at our financial reports to see where that $750 payment which you can also see here.
Posted and if this would be on the balance sheet, we can go to reports.
And then click on balance sheet and here I am going to choose the last fiscal year run reports. Scroll down and here we will see the $750 in GST HST.
Which will be applied. This is where your payable goes to once you file the return and filing of the return as explained in a previous video. But just to refresh is if you go on prepare return and make sure everything's okay and then you would click on mark as filed. Once you do that it also gets posted to the suspense account.
I hope this was helpful. Don't hesitate to let me know if you have any comments or questions in the comments and please like and subscribe. Have a great day.
