I understand that CA requires Sales Tax to be reported on an accrual basis. I have been recording my transactions on a cash basis (like 95% of businesses) but now I am confronted with the error I am making in regards to the Board of Equalization in CA.
If submitted on an accrual basis, how do you handle your invoicing and sales tax with Quickbooks and ShootQ?
Do you move all taxes to be collected at the end of the invoice, instead of divided between the invoices?
I am really in a bind because if I switch over from cash to accrual now (Jan 2012), I have paid a portion of the sales tax on weddings in 2012 already, when their deposits were made. Can anyone offer any insight?