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How To Set Up Sales Tax In QuickBooks?

How To Set Up Sales Tax In QuickBooks

When one runs a business, it becomes an important part of the job to maintain and collect taxes for the goods sold and the services rendered. QuickBooks tools thus help businesses maintain accurate records of all kinds of taxes collected and paid thereby allowing businesses to maintain transparency and accuracy in their taxation procedures. QuickBooks sales tax is very easy to set up. To answer the question how to set up sales tax in QuickBooks one can follow the simple steps provided below –

Before beginning to set up sales tax in QuickBooks, it is important to inquire about the various tax rates and the requisites for each of the relevant tax agencies.


How To Set Up Sales Tax In QuickBooks And How To Generate A QuickBooks Sales Tax Report?

To begin the recording QuickBooks Sales Tax, one first has to activate the feature in QuickBooks by clicking on the ‘Yes’ option.

  1. Step one is to go to the Edit menu in the QuickBooks software and then click on Preferences.
  2. Once the Preferences window opens up, click on Sales Tax and then navigate to the Company Preferences tab.
  3. There you would see a question asking ‘Do you charge sales tax?’; click on ‘Yes’.
  4. The next step would be to click on Add sales tax item to set up the sales tax items and the sales tax groups for each and every category of the district, county, city, etc.
  5. Once you’ve added the sales tax items, the next step is to assign sales tax codes that help in tracking all of the taxable and non-taxable sales and customers. Turning on sales tax in QuickBooks automatically creates two tax codes by the names ‘TAX’and ‘NON’. The names themselves suggest that the TAX code is used for taxable items and customers while NON-code is for the customers and items exempted from the tax. The examples of the non-taxable items would be the non-profit organizations, out of state sales or the items for resale.
  6. The next step in the setup process is to set the sales tax ‘basis’ which would be whether the sales tax would be accrual or cash. The company’s accounting preference has to be taken into account for the same.
  7. Similarly, preference has to be set up for paying sales tax in QuickBooks; whether monthly, quarterly, or yearly.

To sum it up, the steps would be as follows –

Edit > Preferences > Sales Tax > Company Preferences > Yes > Add Sales Tax Item > Tax Codes > Tax Basis

Not only this, you can also generate a QuickBooks Sales Tax ReportWhen one starts using the QuickBooks tool for the day to day operations of the business, ‘setting up sales tax in QuickBooks’ procedure is often a popularly asked question. But the fact remains that any task becomes relatively easier when I worked upon via QuickBooks as compared to other traditional methods.


Contact QuickBooks Online Customer Service +18772499444 For Understanding How To Set Up Sales Tax In QuickBooks

For the new users, understanding the functionalities and operations of QuickBooks sales tax software is not easy. Our QuickBooks online support +18772499444 is available 24/7 for the users with the aim is to provide feasible solutions to the QuickBooks customers and help them with our business concepts for the better understanding of different sales tax models. We acknowledge our customers with training materials, latest QuickBooks updates, error resolution and more. If you have any query regarding QuickBooks tax filling, you can reach us via our support number  +18772499444.

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