It has been a long while since I have posted, I apologize for anyone that has been trying to keep up with this blog, I’ve made it difficult…all goes well, well get some good meat into this blog this month and from here on out…if you have questions, please e-mail them…I want to answer all of them, occasionally it takes me a bit to get to them, bear with me as I get to them.
Today, as the title says, we’ll tackle Sales Tax…
QuickBooks provides you with a number of tools to charge sales tax on your products and services, track those charges and generate reports that will help you pay the taxes back out. This section will walk you through the basics of setting up the sales tax module. These directions only cover general setup. Sales tax law varies greatly by city, county and state. Consult your tax advisor for direction on the specific sales tax rates you should be charging.
Setting up sales tax
To set up sales tax:
1. From QuickBooks Home, click Customize QuickBooks.
2. Select Sales Tax in the left-hand preference menu.
3. Select Yes to answer the question, Do you charge sales tax?
4. Click Add sales tax item to define your individual tax items.
5. Create new tax items for the localities (state, counties, cities, school districts, etc.) in which you do business. If you have additional tax rates to set up later (when you begin operating in a new region for example,) you can set them up using the Add Item dialog.
You may have to create a new vendor profile for the Tax Agency to which you pay and report sales taxes if it does not already exist.
6. After you have created all the necessary individual sales tax items, you can combine tax items into groups to create one or more total rates to use on your invoice. You should create a Sales Tax Group for each city/county/state combination in which you do business.
7. After creating all of the appropriate tax groups, select the tax group for the city in which you do the most business as Your most common sales tax item.
8. You should be able to accept the default values for the rest of the sales tax preferences. As always consult with your tax advisor for the settings most appropriate to your needs.
Most tax reporting agencies will require you to owe sales tax on an Accrual Basis and to pay your taxes Monthly.
9. Click OK in the Updating Sales Tax dialog to make all existing customers, non-inventory parts and inventory parts taxable.
10. Click OK to complete the sales tax setup process.
If you need to edit or delete any sales tax items in the future, use the steps outlined in Item Maintenance (on page 40).