Tax

HST working paper (regular method)

Steps

1. Confirm the filing period and due date from CRA / Canopy.
2. In QBO, run the Sales Tax Liability report and the GST/HST Payable ledger for the period.
3. Prepare the working paper: sales, HST collected, ITCs, net tax, and a reconciliation of the GST/HST Payable opening balance.
4. Investigate and document any opening-balance difference (late-posted prior-period entries are the usual cause).
5. Draft the closing journal entry - do not post it; the reviewer posts after sign-off.
6. Send the working paper and return summary to the reviewer.

Do not

• File anything with CRA yourself.
• Post journal entries before review.