How to record B&O tax, city fees, etc

1

I’m a brand new user, solo practitioner, cash basis accounting. Things seem to be working well after a couple of days of use. One question is how and where to record City/State fees and taxes that not sales/VAT style taxes, so the “Tax Codes” setting doesn’t seem relevant to me. For example, I pay annual B&O tax to the city and state, based on annual gross receipts. I owe a certain amount, according to a formula, which I pay annually. Do I set up the City and State as “Suppliers”, and create a new payment, and simply have a “B&O Tax” expense setup in Chart of Accounts?

Thanks in advance for the advice!

2

Yes to everything. But you don’t need to set up a supplier since you are not buying on credit and will not receive an invoice. Consider the tax authority as “Other.” Either way is correct.

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Thank you for your advice.