(Last Updated On: May 22, 2019)

QuickBooks support is always delighted to help users when they face issues with the bookkeeping software. But, the individual may always come across numerous questions regarding sales tax in the community forums. So, if you are planning to include sales tax in invoices, then here’s what you need to consider. Do contact the QuickBooks support team in case you are unable to generate invoices from the accounting software.

Some concepts

There are many things you need to set up when sales tax comes into the picture. The first step should be to enable the sales tax preference option once you log in to QuickBooks. Later, you have to add some sales tax items and sales tax groups under the item list. As you create an invoice, you should also make sure that the right tax code has been selected from your end. While the details are presented on the screen, the taxable charges have to be set accordingly. Feel free to call the QuickBooks payroll support team just in case you can’t keep a track of the deductions.

Enabling Sales tax

In order to enable the sales tax preference option, you need to go to preferences, and then move on with the ‘Sales Tax’ option. As you view the property sheet, you should select ‘Yes’ for the question ‘Do you charge sales tax?’. Before clicking the ‘Ok’ button, you should select the option, ‘As of invoice date (Accrual Basis) which is nothing but an answer to the question, ‘When do you owe sales tax?’.

Adding sales tax items

As it might be known, every single charge added to the invoice should have an entry under the item list. So, once you have clicked the ‘add sales item’ button you would be able to create one or more tax items. You should never forget to specify the sales tax percentage and the agency you would be dealing for paying the sales tax. To customize the invoice, you need to get in touch with the QuickBooks support team.

In order to manage multiple taxes, you need to create tax items for every jurisdiction. However, you should group them up into an item known as the ‘sales tax group’.

If the invoice shows 8.1 percent as the sales tax rate, then the bookkeeping software would display each tax separately. You can think about third party apps for tracking the sales tax in a better way. But, if you have any issues with payroll management, then you can contact the QuickBooks payroll support team right away.

Finally, it’s essential to set up customers and items to have just one value for taxation. Once you edit the customer details, you can associate the sales tax item and set the tax code to ‘tax’. While you are creating an invoice, the default values are fetched from the customer records and the relevant item records. Once you select taxable for customer tax code, the appropriate tax item, and the suitable tax setting, you would no longer have to worry about the sales tax calculation. Don’t forget to override these in case you need to make changes. If you don’t wish to charge the tax for a certain entry, then set the line to non-taxable.