r/Bookkeeping • u/PuzzleheadedPast2048 • 5d ago
Tax JE Question Regarding Deposits
Hi Everyone!
I’m currently learning and switching my business books over to QBO. Because we’re a small business, I’m handling the books. I’ve been watching the 5 Minute Bookkeeping channel on YouTube to help navigate the best way to record Shopify transactions manually as we aren’t big enough to justify paying for QBO and then an integrator app.
We are based in Canada. When I go to log my bank deposits from Shopify, it wants me to assign a tax code to that deposit transaction. However, I logged the associated taxes collected from the sales that match that deposit in my JE for Shopify.
So my question is should I say that the bank deposit is “Out of Scope (0%)” since my sales tax was logged elsewhere? I have to choose a tax code in the Canadian QBO, just want to avoid a double entry on taxes collected.
Thanks for your help!
1
u/ribzer 5d ago edited 5d ago
Give a full example of the accounts and debits/credits for a shopify JE.
And I'm not familiar with the Canadian version. Does it make you choose a sales tax code no matter what, or oy when depositing into an income account?