Setup Sales Tax In Quickbooks – Getting Accurate Tax Data

sales tax in quickbooks

Although we try to make data conversion as broad as possible, there are some tasks that you need to do before you start using QuickBooks Online. It is the best of data or registers new transactions. You can also discuss this to a QuickBooks ProAdvisor at QuickBooks support number to save your time and effort to manage sales tax in QuickBooks.

To do these tasks, you must be the Master Administrator of QuickBooks Online Company.

  • If you have created the Quarterbine online company you are already a Master Administrator
  • If you are not a master administrator, you will need to invite when you receive an email invitation from the master administrator, then select Accept links in email and sign in using your QuickBooks online credentials.

1. Check your data by comparing reports

We recommend that you compare the reports in the QuickBooks online and QuickBooks desks to ensure that your data has been moved correctly. To verify your reports, run the report “All Dates” and set your accounting method to Accrual in both QuickBooks Online and QuickBooks Desktop, even if you are currently working on a cash basis.

  • Balance Sheet Report
  • Trial Balance – All Dates
  • Customer Balance Summary – All Dates
  • Supplier Balance Summary – All Dates
  • Sales Tax Summary Report for the most recent period
  • Any other reports you’d like to check

2. Confirm company settings

Although we are able to transfer your accounting data to QuickBook Online, but we do not keep information such as company name, address and email details. You must enter this information in your QuickBooks online company.

  1. Select the gear icon, then choose Company settings.
  2. Click On the Company button, enter your company detail and contact information.
  3. You may need to update the email address to handle billing communications and customer communications properly.
    • Enter the email address in the company’s email address box where you want to receive monthly invoices from the intuit for your QuickBook Online subscription.
    • Enter the email address that you want to add to your business in the customer email address box.
  4. Select Save all.

3. Confirm Sales Tax settings

It is important that QuickBook Online is set with the correct CRA Business Number and before you enter the frequency and / or your customers start using it. If your business is not registered for sales tax, you can skip these steps

  1. Select Sales Tax in QuickBooks Online.
  2. From the Edit button GST/HST drop-down, click Edit button GST/HST Settings.
  3. Enter your CRA Business number into the Business number form box.
  4. Check that the Reporting method is correct or not and change the filing frequency if required.
  5. Select Save And Click Save.

4. Clean up Sales Tax

Sage 50 account

In order to consolidate sales tax, use 2 accounts (4 in Quake) to track QuickBooks sales and post migration stages in single GST / HST payable in sales tax. Please follow the steps given in the video given below of your tax accounts:

Other Software

Using QuickBooks Online, QuickBooks Online, QuickBooks Online, it is believed that all GST / HST Records accounts are still outstanding, resulting in remaining GST / HST balance to show incorrectly.

To ensure that GST / HST balance is the correct amount, to correct GST / HST return in the future, you will need to tell QuickBook Online how long your GST / HST is registered.

To clean up GST/HST Form:

  1. Select Sales Tax in the left column of QuickBook Online, then select Ready Returns.
  2. Prepare the GST / HST return screen, enter these details:
    • Set the start date to the start date of the conversion period.
    • Set the end date as the last date for the period covered by the most recent GST / HST Returns.
  3. Click on Mark as Enter, then continue confirming that GST / HST has returned in the date.
  4. You will be taken to the GST / HST screen.

Enter a reverse journal entry to ensure your current balance is correct or not for checking:

  1. From the left column of QuickBooks Online, choose Transaction and then Account History.
  2. From the charts of accounts, select the GST / HST Suspense Account and then Account History.
  3. Find the your GST / HST transaction, you just created, then select Edit button.
  4. You will see the journal entry screen. At the bottom side, you can select Reverse.
  5. A new or similar post system migration task column has been added to show that this was an explanation if you wish, you can type in a note in the GST / HST Suspense line.
  6. Save and choose a new one.

The balance shown in QuickBooks Online should now be correct, it ensures that the GST / HST Returns are correct in the future.

5. Tidy bank reconciliations

Since you have not yet reconciled with the bank in QuickBooks Online, QuickBooks Online, it is believed that the transactions of any bank have not been restructured. You need to tell QuickBooks Online to mark all transactions till the conversion date, so it only considers future transactions for reconciliation.

  1. Select the gear icon, then select Reconcile.
  2. Select the bank account related to the drop-down, then select Reconfiguration Now.
  3. A start reconciling box will open. Enter your final reconciliation date on the expiry date of the statement and enter a clear balance because it is your last reconciliation in the last remaining area.
  4. Leave the rest of the form blank and select the OK button.
  5. If you will see a list of transactions. You will select all the transactions in the list. If the data is in two columns, make sure that you have selected all the transactions in both columns. Then find and uncheck the transactions that are still unclear. When the difference is zero
  6. Select end now
  7. It is important to repeat or again & again this process for all bank accounts in QuickBooks Online.

6. Link payments/credits to open invoices

Since the transactions downloaded in QuickBooks Online did not link the invoice with their respective payments, you may notice that there is zero balance in your A / R and A / P aging report. You can easily link credit/payment to your open invoices by applying a credit preference.

  1. Choose gear icon
  2. On the Advanced tab, select Apply Credit Automatically, then click Save.
  3. If you do not want to pay all payments automatically, then it will be named by a name on the basis of name.

I hope this will help you to understand. For more information contact us at our QuickBooks Online support number and talk to an expert now.