Discover how to use QuickBooks to prepare your IRD tax return in Sri Lanka. Step-by-step guide for businesses and freelancers using QuickBooks Online or Desktop.
If you use QuickBooks to manage your business finances in Sri Lanka, you’re already one step closer to simplifying your income tax filing process. But how do you convert your QuickBooks data into something that satisfies the Sri Lanka Inland Revenue Department (IRD) requirements?
This guide walks you through the steps—from setting up your books correctly to generating reports you’ll need when filing your tax return in 2025.
📌 Step 1: Make Sure Your QuickBooks is Properly Set Up
- Choose the right fiscal year (April to March) under settings
- Create chart of accounts suitable for Sri Lanka’s categories (e.g., Capital, Revenue, Tax Payable)
- Tag all income and expenses properly—important for calculating taxable income
📌 Step 2: Record All Income and Expenses
- Use the Sales module to record invoices, payments, and sales
- Use Expenses to track purchases, bills, salaries, utilities, and rent
- Reconcile bank accounts monthly so that you have clean books by year-end
📌 Step 3: Generate Tax Reports
You can generate these QuickBooks reports for tax purposes:
| Report | Use |
|---|---|
| Profit and Loss | Shows taxable income |
| Balance Sheet | Needed for capital and assets |
| General Ledger | For itemized audit support |
| Transaction Detail by Account | For tax officer review if needed |
Export these to Excel or PDF.
📌 Step 4: Adjust for Local Tax Rules
QuickBooks is not IRD-native, so make manual adjustments for:
- Disallowed expenses (entertainment, penalties, etc.)
- Depreciation rates as per IRD (not QuickBooks defaults)
- Tax deductions like EPF, donations, or investments
Use your adjusted Profit before Tax as the base.
📌 Step 5: File the Tax Return via IRD Portal
Once your final taxable income is calculated:
- Log in to IRD’s eServices Portal
- Go to “Income Tax Return” section
- Input manually or upload IRD XML file if prepared externally
- Pay online or generate payment slip
🟢 Bonus Tip: Integrate QuickBooks with TaxCalculator.lk
Soon, we plan to offer:
- CSV import from QuickBooks to auto-calculate PAYE/income tax
- IRD-ready summary templates
Contact us if you’d like a custom tool built!
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