Quarterly reporting accrual basis, you will report the sales tax from If you are on a monthly reporting cashīasis, then you will report the sales tax when you report your April The sales tax for the March 1st invoice is due in April when you Using theĪbove example again, if you are on a monthly reporting accrual basis, Your state requires you to report and remit sales tax. You will answer this question based on how often Setting up sales tax in QuickBooks allows you to choose how often you How Often Do You Report Sales Tax to Your State? If you are on a cash basis, it is owed as of April 1st. If you are on anĪccrual basis with the state, then the tax is owed as of March 1st, Receive payment from your customer until April 1st. ForĮxample, let’s say you create an invoice on March 1st and you don’t More complicated if you invoice customers and they pay on terms. The tax to the state as of the date of the sale whether you are on aĬash or accrual basis because you receive the funds at the time the If you are on a cash basis, you owe the sales tax as of the day you actually receive the funds.īusiness and your customers pay at the point of sale, you will owe If you are on an accrual basis with them, then the sales tax you collect is owed as of the date you create an invoice or sales receipt. Moving down to the next section you will need to know whether your reporting basis is cash or accrual with your state revenue department.
Prefer to leave these as is, but you can add a new code you create byĬhoosing the arrow for the drop down menu and choosing ‘Add New’. These codes are pre-populated with ‘Tax’įor taxable item code and ‘Non’ for non-taxable item code. Will skip Set Up Sales Tax Item and move down to the ‘Assign Sales Yes for the question ‘Do you charge sales tax?’ For right now, we The Company Preferences tab open for Sales Tax preferences, Choose It up from the preferences menu, here is what you do. For instructions on doing it with the EasyStep Interview, visit this page. If your company file is already set up, you can go to Company Preferences for Sales Tax in the preferences menu which is found under the edit menu. This can be done from the EasyStep Interview when you first setup your company. Setting Up Sales Tax in QuickBooksīefore you can track sales tax in QuickBooks you need to set it up. Therefore, paying sales tax is doneįrom the vendor menu. Your vendor list isĪ list of who your company pays whether it is for costs, expenses, or State which is considered a vendor in QuickBooks. When you consider that you are collecting sales tax on behalf of your Menu, since sales tax is collected from Customers, but it makes sense That remitting sales tax to the state is done from within the vendor In QuickBooks is done from the vendor menu.