QuickBooks Pro 2022 Advanced: Sales Taxes and Reporting

Name: QuickBooks Pro 2022 Advanced: Sales Taxes and Reporting
Author: Takeisha Strong

Learn how to work with sales tax, as well as create reports and budgets in QuickBooks Pro 2022

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Course: On-Demand

Hello. My name is Takeshisha Strong. In these lessons you will learn how to activate and set up sales tax in QuickBooks, understand how sales tax is used on forms, and how to generate sales tax reports. We'll learn the three types of standard reports most companies use, we'll learn the customer and vendor reports available in QuickBooks, and we'll learn how to create and manage a budget within the software. We will be using our sample product based company Rockcastle Construction. For the lesson. Let's get started. Sales tax is specific by location based on the requirements for the municipalities in which your company operates. You may have to pay sales tax on the products and in some cases even the services you sell to your customers. Common practice is to pass along that tax to the customers. In this lesson, we'll walk through how to activate and set up the sales tax in QuickBooks. Let's select Edit from the main menu, then Preferences. On the left panel, select Sales Tax and press the Company Preferences tab. You'll want to make sure do you charge sales tax is toggled to? Yes. In the next section we'll set up a sales tax item. You'll see from the description that it says add a sales tax item for each county, district, parish, state, et cetera, where you collect sales tax from your customers. Press add sales tax item. You'll see the dialog window for New item opens, which is creating the new item in your Items and Services list. Let's create a sales tax item. We'll call this one our state sales tax. For the description, we'll call it State Sales Tax and we'll set the tax rate to 10%. If you already have the vendor in your vendor list, or you'd like to add a new vendor for who you would be paying the sales tax to, you could do so using this drop down. Let's select our state press OK to save. In the next panel, you can select the most common sales tax item from the drop down to be used on your forms by default. Let's select our State sales tax. When you're completing a form, you can select these options to nontaxable, and you can select the description you'll see in the drop down. It just notes whether the item is taxable, but you can add new or change the descriptions for each. When do you owe sales tax? In this section you can select when you owe sales tax based on the accrual basis or cash basis. If by chance you're not familiar with accrual and cash basis, the accrual basis of accounting records income on the date that it is incurred, meaning the invoice date, whereas the cash basis of accounting records income once you receive payment for the invoice. Lastly, you can note when you pay sales tax to the corresponding sales tax agencies. It may be monthly, quarterly or annually. Please keep in mind that through QuickBooks you cannot submit any sales tax returns. QuickBooks uses your company information to provide you with reports and a means to collect the sales tax from your customers and you use that information to file the corresponding sales tax returns with the appropriate agencies. Let's select OK to continue. We want to create a couple new sales tax items. Let's press Items and Services from the company portion of the homepage. If we scroll down to the bottom, we'll see the sales tax item types in this section. I'd also like you to note that you can create out of state sales tax items to note that a product or service may be taxable, but in this instance, out of state sales tax is not charged for this particular company. This is an example of how you can set that up. Let's create sales tax items for our county and city. We'll press New and you'll see the same dialog comes up. We'll select sales tax item and we'll call this county sales tax. We'll set the county rate to 1% and select our county for the vendor. Press, OK to save. You'll see it's been added to the bottom and let's create another one for the City select Sales Tax item. We'll call this one city sales tax. We'll use the same for the description and we'll make this at 1% as well. For the vendor, we'll select our town. Press, OK to save. Now, you may have noticed we also have an option to create a sales tax group. Let's take a look at that one. Next in the drop down, we'll select sales tax group. You can see by the description that a sales tax group is used to calculate and individually track two or more sales tax items or rates that may apply to the same sale or product, meaning the product or service. The customer will only see the total sales tax calculation. This may be helpful for ecommerce businesses where they have nexus in multiple states and need to create those group of sales tax items. Let's call this group our town group. And with this grouping we'll create a sales tax group for the new State, Town and county items that we just created. We'll select it from the drop down menu and now we have a total tax rate of 12%. Instead of having to add these items individually to a form, press OK. Now on this Items and Services table, you can see that we have all of our sales tax items and our sales tax groupings listed on the page. You'll be able to see the description, the actual GL account that the items will post to, and the corresponding rates for each. In the next lesson we'll see how to use these sales tax items and groups and forms. Thanks for watching.

Advanced Provider : Takeisha Strong 6 Lessons · 42m in Arabic, German, English, Spanish, French, Portuguese, Chinese

Course Description

Sales tax is specific by location, based on the requirements for the municipalities in which companies operate. Companies may have to pay sales tax on the products, and in some cases, even the services that are sold to customers. It is common practice for companies to pass that tax along to the customers. Once collected, companies are responsible for submitting the taxes to the respective municipalities in the areas where they do business. Knowing how to generate and use sales tax reports, as well as other necessary financial reports, is essential to the proper utilization of QuickBooks Pro 2022.

In this course, we will discuss how to activate and set up sales tax in QuickBooks, as well as how to properly generate the right reports for corresponding government agencies. You will also learn how to generate a Balance Sheet, Profit and Loss, and Statement of Cash Flow. By the end of this course, you will have a solid understanding of sales tax and reporting in QuickBooks.

What You'll Learn

Activate and set up sales tax in QuickBooks Pro 2022 (QBDT)
Apply sales tax on forms and generate sales tax reports for government agencies
Generate the three most-used financial statements: Balance Sheet, Profit and Loss, and Statement of Cash Flow
Produce standard financial reports as well as customer and vendor reports
Develop and maintain organizational budgets
Manage sales taxes and reporting within QuickBooks

Key Takeaways

Sales tax is specific by location, based on the requirements of the municipalities in which companies operate.
Companies may have to pay sales tax on products sold and, in some cases, on services sold to customers, and it is common practice to pass that tax along to customers.
Once sales tax is collected, companies are responsible for submitting it to the respective municipalities where they do business.
Knowing how to generate and use sales tax reports and other necessary financial reports is essential to properly using QuickBooks Pro 2022.
The course covers generating a Balance Sheet, Profit and Loss, and Statement of Cash Flow.

Frequently Asked Questions

What will this course teach me about sales tax in QuickBooks?

It covers how to activate and set up sales tax in QuickBooks, how to apply sales tax on forms, and how to generate the right sales tax reports for the corresponding government agencies.

Which financial statements does this course cover?

It teaches how to generate the three most-used financial statements: a Balance Sheet, a Profit and Loss statement, and a Statement of Cash Flow, along with standard financial reports and customer and vendor reports.

What topics are included in the lessons?

The lessons cover Setting Up Sales Tax in QBDT, Sales Tax on Forms, Sales Tax Reports, Standard Financial Reports, Customer and Vendor Reports, and Budgets.

Will I learn about budgeting in this course?

Yes. The course includes a lesson on Budgets and teaches how to develop and maintain organizational budgets.

What skills will I gain from this course?

You will gain skills in QuickBooks (Accounting Software), Business Reporting, Sales Reporting, Sales Tax, Sales Tax Management Services, and Sales Tax Auditing.