All Entries Tagged With: "Tax"

Changing QuickBooks Sales Tax Rates Mid-Year

You have your sales tax items and rates all set up, you have the sales tax rate selected for each customer, you can generate your reports, you are all set! HOWEVER – what do you do if a sales tax rate changes in the middle of the year? Today I’ll talk about some ways to handle this situation. I am going to assume you understand how to set up sales tax in QuickBooks (see my article on how to set up sales tax in QuickBooks).

Setting Up Sales Tax in QuickBooks

I see a lot of questions about sales tax in the Intuit Community forums, so I’ll give a quick overview of how to set it up in QuickBooks.

Some Concepts

If you are going to charge sales tax on an invoice, several things must be set up:

• The sales tax preference must be enabled.
• You need one or more sales tax items and possibly some sales tax groups in your Item List.
• When you create an invoice, you must have a taxable customer tax code selected, a sales tax item or sales tax group selected for the tax, and any taxable charges must be set as being taxable on the detail line.

QuickBooks Tax Accounting for a Small Business

I use QuickBooks to manage my small business, and it is tax time. There are a few reports that can help preparing information for my tax return that I’d like to point out. I was surprised to find in a survey of my clients that many didn’t know about these features.