Hi Henock K,

I appreciate your response however my issue is not with payroll or sales tax. Quickbooks did a great job setting that up. However, they lack direction for non accountants as to how to best categorize and handle income tax. It seems many from the quickbooks community have asked this same question and always get the same feedback to inquire with their accountant. I just want to be better educated as to the difference of deferred tax vs income tax expense vs income tax payable so as to understand how to best treat my income tax payments.

Example, I payed my quarterly income tax instalment for March 2024. It is not technically due until April 2025. It seems I can class as a deferred payment but also as a current asset but is technically overall a liability. Once the total Incone tax return at year end is filed & payed the payments obviously move accounts to an income tax expense but because I can't claim as an actual "expense" on my profit loss because it's tax being payed on my income, it can't be classed an actual "expense" but would rather be a long term asset? and no longer a liability (tax payable liability)? 

.... I just need direction as to the stages of income tax and where to categorize in the chart of accounts. A income tax glossary of terms if you will in better detail than the basic "taxes payable with in 12 months" or "taxes due to be payed in the future". 

I feel like Quickbooks should have this set up so when transactions are pulled from the register they can more easily be classified without having to consult an accountant. Although I do have an accountant, but they work for a large firm, change annually and there is no correspondence  in between the early tax call and the year end tax return. I have highered a bookkeeper to consult but she is retiring & only comes to help quarterly. Many are also not familiar with quickbooks and are more familiar with Sage. 

* Also did the find a pro and non for my area 

* Also chatted with Quickbooks & advised of same to consult an accountant as they are not allowed to provide direction ... they ya just a matter of helping confirm the definition of the accounting terminology so to best understand how to use it ..