Enter Taxes Paid on Business Expenses (Canada)

Entering tax amounts on business expenses allows you to track taxes paid for:

• Accounts payable bills
• Operating bank withdrawals
• Credit card charges

Enter Taxes Paid on Business Expenses

Accounts Payable Bill

To enter taxes paid on a business expense:

1. From the left navigation panel, click Accounting.
2. From the Accounting menu, click Accounts Payable.
3. From the toolbar atop the Accounts Payable screen, click Add > Bill.
4. On the Add New Bill screen, in the Bill Date field, use the drop-down to override today’s date, if desired.
5. In the Due Date field, use the drop-down to click the due date.
6. In the Amount field, enter the bill amount without taxes.
7. For the Calc checkbox, take your preferred action:
   • Check Calc Box
     • In the Total field, enter the total amount.
       The system calculates the GST, HST, QST and PST, as applicable, and auto-populates their fields.
   • Uncheck Calc Box
     • In the GST, HST, QST and PST fields, as applicable, enter the taxes paid.
       The Total field auto-populates with the bill’s total.
       Note: To check the Calc checkbox as a default when adding an AP bill, general bank withdrawal, or credit card charge, update your financial settings under Setup > Firm Settings > Financial Settings.
8. In the Pay To field, enter the name of the entity to be paid.
9. Click More Info to add the entity’s mailing address, if desired.
10. If you want the system to remember the payee, check Remember Payee.
11. In the Ref # field, add a reference number, if desired. It can be an internal tracking number, or one from the bill.
12. In the Memo field, use the drop-down to click a memo, or enter a new memo.
13. In the Memo2 field, enter another memo if you desire further detail. This will not display when you print checks.
14. In the Accounts section, click the + Add to choose between Add Account or Use Existing Matter Expense and to split the bill between two or more accounts.
    Note: When you select Use Existing Matter Expense, it displays a section within which you create an expense card or link to an existing one.
15. Complete the fields, as applicable:
    1. Matter: Enter any letter for the drop-down to display the list of existing matters if you wish to add this bill as a matter expense.
    2. Account: Select the chart of accounts to which the bill applies. This account will auto-populate when you post a bill payment.
    3. Amount: This will auto-populate with the total amount. If you wish to split the bill, enter the desired amount.
    4. Description: Add a description
    5. Timekeeper: This column will be visible if you select Use Existing Matter Expense
    6. Status
    7. Expense Name
    8. Expense Code
    9. Taxable
    10. Has Class
16. Under the Options section, check the Discount for early payments box as applicable. When you apply payment, you will have the option to enter the applicable discount.
17. Check the Finance charge for late payments to apply finance charges to overdue bills. To set up finance charges, see Set Up Automatic Finance Charges.
18. Check the Hold bill payment box to prevent firm users from paying the bill until you remove the hold, if desired. The system will generate a warning message if a user attempts to pay a held bill.
    Note: You can also use the Edit function to place a hold on an existing bill.
    If the bill is a recurring item, check the Recurring box and from the drop-down, click the recurrence frequency.
    The system will automatically generate recurring entries based on the duration you select.
    Click Notes to add any internal notes regarding the bill, if desired.
    Take the appropriate action:
    Click Save and New to save the bill and enter another.
    Click Save to save the bill and return to the Accounts Payable screen.
    Important: If you are entering a bill with the same payee and Ref# as an already existing bill, a warning will populate: “Payee has an existing bill with this Ref#. Do you still want to proceed?”. Select “No” if you would like to go back to the Edit Bill screen, or “Yes” to save the bill.

Operating Bank Withdrawal

To enter taxes paid on a business expense:

1. From the left navigation panel, click Banking.
2. On the Bank screen, double-click your operating bank to get to the Transactions area.
3. From the toolbar atop the Transaction screen, click Add > Withdrawal.
4. On the Add Transaction screen, in the Bill Date field, use the drop-down to override today’s date, if desired.
5. In the Amount field, enter the bill amount without taxes.
6. For the Calc checkbox, take your preferred action:
   • Check Calc Box
     • In the Total field, enter the total amount.
       The system calculates the GST, HST, QST and PST, as applicable, and auto-populates their fields.
   • Uncheck Calc Box
     • In the GST, HST, QST and PST fields, as applicable, enter the taxes paid.
       The Total field auto-populates with the bill’s total.
       Note: To check the Calc checkbox as a default when adding an AP bill, general bank withdrawal, or credit card charge, update your financial settings under Setup > Firm Settings > Financial Settings.
7. In the Pay To field, enter the name of the entity to be paid.
8. Click More Info to add the entity’s mailing address, if desired.
9. If you want the system to remember the payee, check Remember Payee.
10. Select the Type and Method of the transaction using the drop-down.
11. In the Ref # field, add a reference number, if desired. It can be an internal tracking number, or one from the bill.
12. In the Memo field, use the drop-down to click a memo, or enter a new memo.
13. In the Memo2 field, enter another memo if you desire further detail. This will not display when you print checks.
14. In the Accounts section, click the + Add to choose between Add Account or Use Existing Matter Expense and to split the bill between two or more accounts.
    Note: When you select Use Existing Matter Expense, it displays a section within which you create an expense card or link to an existing one.
15. Complete the fields, as applicable:
    1. Matter: Enter any letter for the drop-down to display the list of existing matters if you wish to add this transaction as a matter expense.
    2. Account: Select the chart of accounts to which the bill applies. This account will auto-populate when you post a bill payment.
    3. Amount: This will auto-populate with the total amount. If you wish to split the bill, enter the desired amount.
    4. Timekeeper: This column will be visible if you enter the matter name.
    5. Description: Add a description
16. Take the appropriate action:
    Click Save and New to save the transaction and enter another.
    Click Save to save and return to the Transactions screen.

Credit Card Charge

To enter taxes paid on a business expense:

1. From the left navigation panel, click Banking.
2. On the Bank screen, double-click your credit card bank.
3. From the toolbar atop the Transaction screen, click Add > Add Charge.
4. On the Charge screen, in the Bill Date field, use the drop-down to override today’s date, if desired.
5. In the Amount field, enter the bill amount without taxes.
6. Take the appropriate action:
   • Check Calc Box
     1. In the Total field, enter the total amount.
        The system calculates the GST, HST, QST and PST, as applicable, and auto-populates their fields.
   • Uncheck Calc Box
     • In the GST, HST, QST and PST fields, as applicable, enter the taxes paid.
       The Total field auto-populates with the bill’s total.
       Note: To check the Calc check box as a default when adding an AP bill, general bank withdrawal, or credit card charge, update your financial settings under Setup > Firm Settings > Financial Settings.
7. In the Pay To field, enter the name of the entity to be paid.
8. Click More Info to add the entity’s mailing address, if desired.
9. If you want the system to remember the payee, check Remember Payee.
10. The Type will default to Charge, use the drop-down to select the transaction Method.
11. In the Ref # field, add a reference number, if desired.
12. In the Memo field, use the drop-down to click a memo, or enter a new memo.
13. In the Memo2 field, enter another memo if you desire further detail.
14. In the Accounts section, click the + Add to choose between Add Account or Use Existing Matter Expense and to split the transaction between two or more accounts.
    Note: When you select Use Existing Matter Expense, it displays a section within which you create an expense card or link to an existing one.
15. Complete the fields, as applicable:
    1. Matter: Enter any letter for the drop-down to display the list of existing matters if you wish to add this transaction as a matter expense.
    2. Account: Select the chart of accounts to which the transaction applies. This account will auto-populate when you post a bill payment.
    3. Amount: This will auto-populate with the total amount. If you wish to split the bill, enter the desired amount.
    4. Timekeeper: This column will be visible if you enter the matter name.
    5. Description: Add a description
16. Take the appropriate action:
    Click Save and New to save the transaction and enter another.
    Click Save to save and return to the Transactions screen.