How to Effectively Set Up and Track Sales Tax on QuickBooks Desktop

In this tax season, ease down your sales tax burden by setting-up and tracking sales tax directly from QuickBooks Desktop accounting software. In case, if you are tracking and managing sales tax via QuickBooks add-on or app, such as Taxify then, you can easily import sales tax details on QuickBooks Desktop accounting software.

By setting up the sales tax on QuickBooks Desktop, you will also be able to edit sales tax items from QuickBooks, which all in all, enhances your business productivity. Sales tax details will be updated both in the accounting software and app that you may use for sales tax calculation or estimation by setting up sales tax in QuickBooks Desktop.

Well, the setting up process of sales tax on QuickBooks Desktop is bit complex and may require assistance from an experienced QuickBooks Desktop support services provider. In this blog post, however, to give you an understanding we will discuss steps that is advisable to be followed for an effective set up of sales tax on QuickBooks Desktop. Let’s start.

Set Up and Track Sales Tax on QuickBooks Desktop

While setting up the sales tax on QuickBooks Desktop, you need to set up your specific agency, sales tax rates, etc through the Sales Tax Center of QuickBooks Desktop. And, to do this, you need to select Taxes menu on the left side of the navigation toolbar.

Edit or Add Sales Tax Rates and Agencies

To edit or add sales tax rates and agencies for your business, you need to follow these steps: 

●     In the related task list, select and click on Add/Edit Sales Tax Agencies and Rates

●     Now, click on New menu, and select from two options of Combined Tax Rate or Single Tax Rate

●     Now, enter the details asked, such as a name of the specific agency whom you pay taxes, a percentage of the sales tax rate, etc.

●     Lastly, click on Save. By doing this, you will see the new name of agency and sales tax rate that you have entered. You will also see new sales tax rates and the agency name in the new invoice or receipt that you generate.

Add Combined Sales Tax Rate for Multiple Tax Agencies

If you are paying sales tax to multiple agencies of your city, state and country then, it is advisable to add a combined sales tax rates for different agencies. By entering a combined sales tax rate on Tax Center, you will see only one tax type mentioned on invoices and receipts, which eases down customer/client complications as well. To add a combined sales tax rate on QuickBooks Desktop, you need to follow these steps: 

●     Select and click on Add/Edit sales tax rates and agencies

●     Now, click New and then go to Combined Sales Tax rate

●     Enter a specific name for the combined rate

●     Now, you can enter different components of sales taxes, such as name of the agencies and respective tax rate

●     Finally, click on Save

Similarly, you can also edit or add agencies name and different sales tax rate.

Configure Sales Tax Setting

Last, but not the least, you now need to configure sales tax setting on QuickBooks Desktop. You can configure sales tax setting with Invoices, estimates, credit memos, sales receipt, billable expenses, time charges, etc.

What’s Next

After understanding different steps needed for setting up Sales Tax on QuickBooks Desktop, it is advisable to dial QuickBooks Desktop support phone number. QuickBooks support services provider consists of experienced and certified QuickBooks ProAdvisors who will help you effectively setup and configure sales tax on QuickBooks Desktop.