Hi,

 I'm just about to close my FYE. My balance sheet shows negative numbers for GST/QST paid on purchases however I'm not entitled to refunds on these taxes as my business generates exempt sales. I played around with my settings and realized that I had to change my sales tax options to "non refundable". So I did so, but the balance sheet still shows sales taxes as a negative receipt. Do I have to go back on every single transaction and adjust them or there is a much faster way to solve this?

If you are going to have accurate records you will need to post the tax paid back to the appropriate accounts.

On another posting you mentioned that you do not have many transactions. Probably the simplest way to handle your current problem would be to run a spreadsheet accumulating the tax paid by your various expense accounts and then do one general journal entry to cr tax paid on sales and dr the appropriate expense accounts

 that's so true! basically I would reverse in one journal entry all the amounts in QST/GST refundable account. My accountant just me that my GST is now parts of my COGS/general expenses.  Shall I assume that in the future this will not be a problem as I changed the settings so that simply accounting will no longer track GST/QST as an exempt supply? Or do I have to included in the price the GST/QST?

Thank you

If you are not a GST/HST registrant you do not need to track GST/HST at all. The amount of tax you pay on a purchase is just part of the cost of that purchase and will end up in the appropriate expense account.