Quick Method GST/HST

Hassan requested help with figuring out how to use QuickBooks software to record the GST/HST using the QuickMethod.

CRA has a special simplified method for small business's that is supposed to cut red tape. Well, we spent the better part of an hour, and came up with an even better way to use the Sales Tax Module that I had thought of prior to going online with Hassan to discuss how the Quick Method works.

We looked at how it works first, going to the CRA website to look at the rules.  Then we opened a QuickBooks data file and made entries and set up the tax codes, Items and Chart of Accounts so we could enter invoices. I had started out using one method and during the conversation, found a better way to do it using the Sales Tax Adjustment form.

Then we moved on to purchases. You can claim an ITC on business use of vehicles, and if under 90% business use, it's possible to claim an ITC on CCA. So we delved into how you would record this transaction for a purchase of a vehicle using 60% business use as our figure. We opened Profile T1 and started a sample tax return to figure out how the transaction would work on the T1 Auto schedule too. And we used my ITC on CCA spreadsheet which is for sale for $3.95 on my website to help us with the proof of the calculations.

The video sells for $9.98 if you want to see what we did, and we think it's a pretty cool solution, don't we? Hassan? are you there?

He did pretty well at his first acting job, I must say. He's sure to be famous by tomorrow.

http://www.taxdetective.ca/master_quickbooks_/QuickMethod.html