How to Create Sales Tax Report in QuickBooks | Run | Benefits

QuickBooks is the Software which helps small business to expand in the proper manner. You must keep track of your receivables, inventories, and payables among other things. You may capture employee data more quickly with help of the new features and functionalities which are added to the QuickBooks.

Managing sales taxes is a non-profit endeavor for your company. So, sale tax is very important for every business. For the setting of the proper sales tax, you have to manage tracking as well as always ensure that cash is there for paying sales taxes. You need to make sure that your business pays its sales taxes on time as it helps you in avoiding missing a remittance period.

You can use QuickBooks sales tax liability report for the generation of sales tax reports. You may easily follow local tax payment schedules for your business by customizing the period for which you wish to create the report on the Sales Tax Liability page. When you’ve finished creating a sales tax report, you can either review it on your screen or print it out for your records by using the print feature.

The Sales Tax Report contains two crucial sections: the Sales Tax Summary and the Sales Tax Audit Report.

The list of taxes in the sales tax summary is categorized by the account type, tax component, and tax rate. The Sales Tax Audit Report shows the return period for your Sales Tax transactions.

Benefits of Sales Tax Report

You can have detail information into your billing, invoicing, and sales processes by using sales reports. These are useful for maintaining and understanding the customer base, tracking of a product’s or business’s sales performance, and keeping an eye on the revenue details.

Sales reports can be divided into four main categories, such as Detail Reports and Summary Reports etc. On the other hand, a comprehensive report will display the transactional data pertaining to a certain item or client. One of the most crucial tools for comprehending your company’s revenue, sales team performance, and customer base is a sales report. The cash flow of your business will run smoothly and without any issue or error with the use of sales tax report information.

How to Create Sales Tax Report in QuickBooks

First, you have to go through your Business Address, if it is correct then you have to start with the QuickBooks Sales Tax Reports. This is essential because QuickBooks will set up the appropriate Tax Agency and Rates for you by using this data. The steps which are to be followed for setting up the QuickBooks sales Report:

• Navigate to the left menu and the select the taxes tab from it.
• From the drop-down menu of taxes click on the sales tax.
• Choose one of the option out of two options for setting up the sales tax according to your need:
  • Once you reviewed everything then hit the next button.
  • In case you are paying to other tax agent then you must enter its information in the QuickBooks.

• As per your need select Yes and No.
• Once you are done with the process of selection then you can add the agency to which you are paying the tax.
• Hit the next button so you can move to the next page.
• Choose the frequency which will help you to notify when there is the time to file sales tax report.
• From the drop-down menu of frequency, select the time when you have to file your return.
• Enter the start date as per your file return.
• Select the save button, so that you are able to save all the changes which you have made.

Now you are in the way of quickly setting up everything. Your invoice now includes many factors including Sales Receipts, Estimates, and Credit Notes. In the sales tax window, apply sales tax in any of these fields by doing the following:

• First, You have to fill the detailed information of the products and the service in the form.
• In the tax column, you have to tick in front of the entire taxable item in the tax box under the tax.
• In case if you want to edit something in the form then you have to click anywhere in the white space.
• Navigate to the bottom right of the screen and select the sales tax which is relevant to your product.
• Navigate to the Tax-Exempt Consumer and from the drop-down menu, select not to collect sales tax.
• The customers like charities, organizations, Non-Profit etc who are taxable by default.

How to Run a Sales Tax Report in QuickBooks

There are differences between running a sales tax report in QuickBooks Desktop and QuickBooks Online. Starting with QuickBooks Desktop, let’s proceed. Remember that QuickBooks Desktop’s is a user interface which varies a little bit across versions.

Run a Sales Tax Report in QuickBooks Desktop

• You need to make sure that the sales tax is enabled or ticked for QuickBooks File.

• The pop-up window will flash in front of you, from the left menu select the sales tax.
• In the option of sales tax, click on the company preferences from the top of the menu.

To set up your sales tax tracking, click on the “Yes” radio button.

Now navigate to the other pop-up windows and follow all the instructions.

Following all the on-screen instruction involves several steps. Once the configuration is complete, hit the “OK” button to preserve your changes.

• At the end of sales tax period, you have to select the manage sales tax icon on the home screen.

Select the sales tax report in the pop-up box to get the data which you require to finish filing your taxes with the state tax authorities.

This will be the Sales Tax Liability report for the majority of firms.

• Paying of Your Sales Tax

You must pay your sales taxes once you’ve submitted your sales tax return, in any way which you will find relevant that is the paper or electronically through the state tax authority’s website.

Click the “Pay Sales Tax” button in order to accurately record the payment in QuickBooks and maintain the integrity of your liability account.

You should be aware that this does not really submit the payment to the sales tax authority. This stage enables you to prepare a check for mailing to the sales tax authority or to register an online payment on the website of the tax authority.

Run a Sales Tax Report in QuickBooks Online

Sales Tax Center must be Enabled

• Navigate to the left menu and then select the Taxes option from it.

• Now hit the button get started on the screen.

• Navigate to the pencil icon and click on it for editing the business address.
• Select the next button, once you are done with all the above steps.

• Now you have to match the sales tax rates with your agency.
• Once the process of matching is done click on the next button.

• Now rates are to be reviewed and once you verified all the rates, click on the save button to save all the changes.
• In case you want to change anything then you have to select the change button.

• If you need to file with numerous agencies, click “Next Agency” or “Save” after choosing your filing frequency (if you must only file with one, or once you have completed the setup for all sales tax authorities).

Check for the Due Sales Tax

• Navigate to the left menu and select taxes from it.
• The dashboard of the sales tax liability will pop up in front of you.

Sales Tax Liability Report

• Navigate to the top menu and select report and then from the drop down menu click on tax liability report.

If You are Ready to Pay Tax, Hit the view Return Button.

First you have to click on the record button, if all the payments are recorded accurately. It will help you in keeping your all the liabilities accurate.

In case you need to make any adjustment then you can click on the adjustment button.

Once done with all, hit the return button and you are done with it.

Benefits of Building Sales Tax Report

• It is very helpful in the case of handling the account where there is a ever-growing data of a firm, as we can’t handle it manually.
• For a firm to run well, it is very important to continuously track key business metrics like expenses, profit and loss, total sales etc.
• You can get the view of sales report which is crucial for analyzing your company’s revenue, the performance of your sales team, and your customer base.
• With the help of the report, you can focus on those areas which are need to be addressed to be more successful by using this information. It helps you to better understand the cash flow of your business.
• Customers’ data, including contact details, orders, and so forth, expands as your firm grows.

Although QuickBooks Sales Tax Report is quick and simple to set up, there are certain restrictions that you can encounter. As a firm grows and gains more clients, then it generates an exponential amount of data on transactions, client information, and products. It is difficult to maintain account manually for all of the data from many Data Sources with QuickBooks.

In such condition our Dancing Numbers team will help you; they give you access to functionality for analysis, report preparation, real-time data transfer, invoices, and much more. You just need to contact us; our team will help you in resolving your issue.

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