Setting up Quickbooks Sales Tax Reports: Easy Steps and Metrics

on Accounting Software, financial reports, QuickBooks, Reporting Tools, Sales • November 15th, 2021 • Write for Hevo

Sales Reports provide an insight into your Billing, Invoicing, and Sales processes. These can give Sales Managers a lot of information on their Customer Base, Sales Reps, Product Performance, Revenue, and the overall Financial Health of their company. For new business owners, Sales Tax can be intimidating. The rules vary from one state to the next and are rife with exceptions. However, the majority of the difficulty originates from determining whether or not your company is needed to pay Sales Tax and how much you must collect. This is where QuickBooks Sales Tax Reports save the day for you.

In this article, you will read about the basic information of QuickBooks and what are the different features of QuickBooks. Later, you will learn what is meant by a Sales Tax Report and what is its importance. You’re also provided with a step-by-step guide for building a QuickBooks Sales Tax Report. Lastly, you will have a clear idea about the benefits of building a QuickBooks Sales Tax Report.

Table of Contents

Introduction to QuickBooks

QuickBooks Sales Tax Report: QuickBooks Logo
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To grow your small business in the right direction, it is needed to track your payables, inventory, and receivables; and much more. This is made easy by using QuickBooks Software. In the new version of QuickBooks Display 2021, they added new features and functionalities which will help you to play faster while recording employee data. You can also enter all your expenses receipts because mobile apps are accessible directly from your system. You can create a group of customers according to their status or location or type.

Key Features of QuickBooks

QuickBooks gives you access to some of the smartest features in the Financial Software Market. Let’s take a look at the smart features given below.

  • Data Transfer:  If you want your financial data on a Spreadsheet, it can be done very quickly with QuickBooks Accounting Software. 
  • Easy-to-Use: QuickBooks is developed to meet the requirements of small and medium-sized businesses as well, and this makes them user-friendly. This software is pretty simple to use for everyone.
  • Straightforward Process: To run a successful business, it is needed to know how the software is working for your company. Being familiar with every aspect of the software is very necessary and QuickBooks provides you with easy learning options. 
  • Transaction Security: QuickBooks also keeps the record of the bank transactions and makes them transparent. All types of records like Commission, Profit, Wedges, Salary, and others are maintained.
  • Tax Management: The tax calculation capabilities of QuickBooks allow you to calculate tax for your company in a timely, accurate, and efficient manner.
  • Multiple Users: QuickBooks grants permissions to multiple users from various departments to increase collaboration among teams.
  • Free Support: QuickBooks provides effective and unlimited free support services. Quickbooks Support Team is always there to answer your queries and solve any problems you face while working with QuickBooks.

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Introduction to Sales Tax Reports

QuickBooks Sales Tax Report: Sales Summary
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As discussed, Sales Tax can be intimidating for new business owners.  However, the majority of the difficulty originates in determining whether or not your company is needed to pay Sales Tax and how much you must collect.

The Sales Tax Summary, as well as the Sales Tax Audit Report, are important parts of the Sales Tax Report. The Sales Tax Summary defines a list of taxes organized by the tax rate and tax component with the account type. The return period of your Sales Tax transactions is displayed in the Sales Tax Audit Report.

Importance of Sales Tax Reports

As discussed, Sales Reports can give you an insight into your Billing, Invoicing, and Sales processes. These are helpful in maintaining and understanding a Customer Base, monitoring the Sales Performance of a product or company, and keeping a check on the Revenue Details.

There are four primary types of Sales Reports, each of which has subcategories, such as Detail Reports and Summary Reports. A thorough report, on the other hand, will show the transaction information related to an item or customer. A Sales Report is one of the most important tools for understanding your company’s Revenue, Sales Team Performance, and Customer Base. With help of this information, your company’s cash flow will go smoothly and without any disturbance.

Now that you have a basic understanding of what Sales Tax Reports are, let’s directly jump into the setup of QuickBooks Sales Tax Reports.

Steps to Set Up QuickBooks Sales Tax Reports

Before you start with QuickBooks Sales Tax Reports, firstly review your Business Address. This is necessary because QuickBooks will use this information to set up the appropriate Tax Agency and Rates for you.

On the left menu, select “Taxes“, then “Sales Tax“.

Setting up Sales Tax is the option to choose.

  • After you’ve reviewed everything, click on “Next“.
  • If you pay other Tax Agents, let QuickBooks know.

Note: Consult your Accountant or Tax Consultant if you’re unsure whether you need to file with other Tax Agencies or if you already do.

  • Select either “Yes” or “No“.
  • If you have selected “Yes“, then add the Tax Agencies where you pay your taxes.
QuickBooks Sales Tax Report
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Now move on to the next stage.

  • Select a frequency for QuickBooks to notify you when it’s time to file.
  • From the drop-down sequence, select the time as per your file filling.
  • Finally, enter the “Start Date” and click on “Save“.

You’re all set up in no time. Now you can see different parameters such as Sales Receipts, Estimates, and Credit Notes, in your invoice. In the “Sales Tax” field, apply Sales Tax in any of these windows by following these steps:

  • Fill in your products and services in the form. 
  • For each taxable item, tick the box under “Tax” in the “Tax” Column.
  • Click anywhere in the white space, if you want to make amends to the Sales Form. Select the relevant Sales Tax at the bottom right.
  • You can choose not to collect Sales Tax from Tax-Exempt Consumers (Organizations, Non-Profits, and Charities, to mention a few). All customers are “Taxable” by default.

Benefits of Building QuickBooks Sales Tax Reports

Manually accounting for the ever-increasing data can be difficult, and a sophisticated automation technique is required.

Continuous tracking of Key Business Metrics including Expenses, Profit and Loss, Total Sales, and so on is critical for a company’s performance. A Sales Report is one of the most important of these, as it aids in the understanding of your Company’s Revenue, Sales Team Performance, and Customer Base. This information can assist you in better understanding your company’s cash flow so that you can focus on areas that need to be improved to achieve greater success. Customers’ Data, such as Contact Information, Orders, and so on, grow as your business scales.

Conclusion

QuickBooks Sales Tax Report is easy to manage and quick to build, but you may face certain limitations while setting up QuickBooks Sales Tax Report. As a business scales, it attracts more customers, and the data generated related to Transactions, Customer Details, and Products increases at an exponential rate. Manually accounting all that data from different Data Sources with Quickbooks is a monotonous task. Hence, you can use Hevo’s 14-Days Free Trial which provides you with functionalities for Analysis, Report Preparations, Real-Time Data Transfer, Invoices, and so more.

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Do you use QuickBooks? Share your experience of setting up QuickBooks Sales Tax Reports in the comments section below.

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