Switching to HST Quick Method
The HST Quick Method and QuickBooks
Great site with lots of very helpful information.
I am registered for BC HST and have elected to use the quick method as I am a service business with very limited expenses. I chose the quick method as I think that this will "make me money" as I will be remitting only 8.2% of my total sales vs 12% HST less minimal ITC's.
My question is how do I record this in my records?
I am currently tracking HST paid and billed but when I remit using the quick method I will not clear out/balance to my HST account. Can I record the difference to income?
I'm glad you are finding the site useful.
I've never used the Quick Method but it is my understanding you would take the difference into income to an account called "HST Quick Method Revenue" or something similar.
Check out Gary Timmons, CA's website where he explains how to process and record the Quick Method using QuickBooks. You'll need to adjust his rates though as he is in Ontario not B.C..
He also shows you how to complete your return here:
in QBO - http://www.gtimmons.com/resources/quickbooks/quickbooks-online/
in QBD - http://www.gtimmons.com/resources/quickbooks/quickbooks-desktop/paying-gsthst-quickbooks/
You might also want to check out the forum post GST HST QuickMethod
.P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.