You've tracked the sales tax you've collected, and now you're ready to pay it. Here's how to enter it in Wave.
Recording a sales tax payment
There are two different ways to record the payment of a sales tax in Wave:
- Option 1: Categorize a new or existing expense transaction.
Head to Accounting > Transactions, and either select your bank-imported expense, or select “Add expense.” Enter a description, select the payment account you used to pay the sales tax, and in the Category box, choose "Sales Tax Payment to Government" and then, in the list that opens, select the correct Sales Tax Name; click Save.
If you want to pay multiple sales taxes with one payment, you can split the transaction. Learn how to do that here.
- Option 2: Add a journal transaction.
Head to Accounting > Transactions > More (top right corner), and then “Add journal transaction.” Add a description of the entry in the description field, and select the date you're paying the tax. For the Uncategorized Expense line item (or debit), select the "(Name of sales tax) Payments and refunds to the government" account, and enter the amount.For the Uncategorized Income line item (or credit), select the bank or other payment account that you're paying the sales tax from, and enter the amount. Click Save.
To find the right sales tax account quickly, use the Search function in the account selector dropdown.
And that's it! Now your payment is recorded, and included in your Sales Tax Report.