Phreesoft Support Forum

I am getting the error 'You have an entry in a cash account that should not be there' in my Bank Account register. I read thru the posts on the 'Error in my bank account register' subject, and I know that I am getting this error because I have some invoices that have sales tax included on them. However, I do not know how or where to go to fix this problem with the Sales Tax. Can someone instruct me as to where my sales tax is set up incorrectly?

thanks,

nwalk
nwalk@idotmind.com

All of your Sales tax account should be of the type "Other Current Liabilities". This is because you (usually) pay your sales tax on a weekly, quarterly, or annual basis. You probably have your sales tax accounts as type 'Cash' account. Sales tax collected is not really cash since you are collecting the tax for the government, it's not yours to spend. When you send the money to the government, you relieve the sales tax account and offset it with a cash account as you are now making a payment (with real money) to the government to pay your collected taxes on their behalf.

Dave