QuickBooks can track sales tax as an expense by creating an expense account following to select that particular account to track your payment as taxes. The expense account can be created easily within the Chart of Accounts. As the process to track the tax expenses is not automated, you need to select manually the account created to track the expenses for each particular transaction. When the account is created successfully you can easily view the expense summary of the account and view all the payments made towards taxes. Our QuickBooks ProAdvisor tech support will get you in touch with certified QB experts who can easily guide you through sales tax.
How to create an Expense account
- Go to list and select Chart of Accounts.
- Click the Account button and select New.
- Click the option for an Expense account and click continue.
- Enter a name for the expense account to help track the account, such as Tax Expense.
- Click the Tax Line drop-down menu and select an appropriate tax line for your company.
- Click OK to save and close the account window.
How to track Sales Expense
- Create a normal transaction and click the Expenses tab.
- Select the Tax Expense account you created to track tax payments.
- Enter the sales tax amount in the Amount column.
- Click on recalculate and check that the correct total appears.
- Open your Tax Expense account to view and track your taxes paid.
If you are maintaining the sales tax of your company you are ensured of never missing any remittance period. QuickBooks features to create sales tax reports and avail the benefit of this. The Sales Tax Liability screen authorizes to customize the period for which you want to create the report. It makes it easy for your business to comply with local tax remittance schedules. When you successfully create a sales tax report, you can either verify the report on your screen or use the print function to print it for your records.
- Click Manage Sales Tax of the QuickBooks -> click Sales Tax Liability in the Pay Sales Tax section. If it is required you can load the Sales Tax Liability screen by clicking Vendors & Payables on the Reports menu -> Select Sales Tax Liability.
- Click and select the period you want your sales tax report to cover. Manually enter dates if the reporting period you want to cover is not listed.
- Click Refresh after selecting your dates to have QuickBooks populate the fields of your sales tax report. The headers of the row populated by tax agencies to which you must remit your taxes. The headers of the column comprise of Tax Rate, Taxable Sales, Non-Taxable Sales, Tax Collected, and Sales Tax Payable.
Record, Delete & Edit a Sales Tax Payment
You collect sales tax from customers if you may need to verify the sales tax amounts periodically that you owe to tax agencies. In the Sales Tax Center, you can easily view a report about your sales tax liability and you can record your sales tax payments.
Sales Tax Center is the ultimate destination that will record sales tax payments because you can see all your recent payments on a single page. You can view your monthly sales tax owed, even quarterly, or yearly, and adjust which period you need. You can also adjust your accounting on a cash or accrual basis.
How to View sales tax liability report
- Choose Sales Tax from the menu.
- Under Related Tasks, click View sales tax liability report.
- The report displays agency, the taxable amount of sales, and the tax owed.
How to Set up Sales Tax in QuickBooks 2020
QuickBooks 2020 makes it easy to collect and record sales tax when necessary. You probably want to check with your local sales tax revenue agency to determine whether sales tax should be calculated before or after the discount. If you need to collect sales tax, and you didn’t set up this function in the QuickBooks Setup, follow these steps:
- Go to Edit -> Preferences.
- The Preferences dialog box appears.
- Click the Sales Tax icon -> Click the Company Preferences tab -> Select the Yes option button (the option is in the Do You Charge Sales Tax area.)
- Add the Sales Tax items to your Item list.
- Click the Add Sales Tax Item button.
Once the QuickBooks program displays the New Item dialog box enter a name for the sales tax into the Sales Tax Name box, the sales tax rate into the Tax Rate box, and the state agency you remit the sales tax to in the Tax Agency box. Once finished click ok to close the New Item dialog box and the Preferences dialog box.
If you have any queries related to the QuickBooks Desktop version contact businessaccountings.com. It has been at a pinnacle of QuickBooks Sales Tax Support. Our in-house QB professionals, with the help of their experience, will suggest the right guidance that can be your route to business success. QuickBooks can be visited to get in touch with certified experts.