How to properly record income tax paid electronically
My question is probably trivial for most of you, but I can't
quite figure it out on my own. After browsing internet I got even more confused...
I have a bank transaction for the income taxes I paid for previous tax
year. The number I got from my accountant. He made calculations without
using Zoho Books.
The only relevant option Zoho Books offers me to categorize it as
Tax Payable. As a result I have negative tax liability. My
understanding that after payment is made my tax liability account
should show 0.
In order to make it 0 I need to add another record with
corresponding positive Tax Payable liability showing that I owe taxes.
What would be the right way to do it?
Or am I getting it all wrong?