Sales tax is referred to the tax that small-organization urge on their clients while selling services. It is also called as a pass-through tax revoked to the local government under a specific duration. This tax is mainly charged in terms of the percentage of the item selling price. The sales regulation and amount vary with a physical presence i.e. across the distinct country, state, and city. Business has individual sales tax liability accounts in each region. This blog will cover the method to pay sales tax in QuickBooks Desktop for Mac.
Significance of sales tax in business:
Customers give sales tax while buying a product which becomes a liability fund for the organization. The sales tax payable is known as a liability account present in the balance sheet used to monitor the entire details about gathered sales tax from clients in terms of a government tax authority. This amount holds by business owners and is liable for dispatching it to the government appropriately. The business owners are required to characterize the taxable products, discover exemptions, and gather the taxes and pay it to the state..
Role of QuickBooks in Sales tax:
QuickBooks software permits users to maintain an accurate record of the sale taxes that are gathered for certain products that a company offers. You can easily view the information related to sales tax and also remit them to the suitable government agency.
Following are the major functions regarding sales tax:
- View multiple sales tax elements on an invoice
- Manage cash-dependent sales tax
- Helps to process sales tax agreements
- Track the status of sales tax acquired from suppliers
- Refund process of sales tax possessed from tax-exempt clients
Sales tax setup in QuickBooks:
- Locate the QuickBooks option, and then choose preferences
- Click in Sales tax
- Hit on Customers are charged sales tax
- Choose how you pay sales tax i.e. Monthly, Quarterly or Annually
- Select sales tax accrues. Choose As of invoice date or hit on Upon receipt of payment if you select a cash basis
- Select the dropdown named Most common sales tax and choose Edit for an item set-up
- Select a group listed in Add a sales tax group
- Select T along with taxable amount while printing
Taxable sale transaction process:
QuickBooks permits the calculation of sales form and embeds the sales tax rate. In Sale forms, you can view sales tax in two places.
- The item tax:
It acts as a tracking element for a taxable item.
- Group/tax item:
It is called a sales tax item /group that needs to set up to display the tax rate associated with it.
Paying Sales tax in QuickBooks Desktop for Mac:
Whenever it’s time to pay sales tax there is a need to execute sales Tax liability reports in QuickBooks to review the guidance related to sales tax forms. The pay Sales Tax part wills represents the sales tax that owing to an individual tax item along with descriptions and adjustments done while applying for payments.
Mentioned-below is the set of instructions that are required when you want to pay sales tax through Mac:
- Navigate the Vendors option, choose Sales Tax and after that click on Pay Sales Tax
- Hit on drop-down named Pay from Account and then choose the preferred bank account that you need to use for payments
- Ensure that the entered date is accurate in Show sales tax due through
- Check the Starting Check No and make sure the number meet the proceeding check
- Be sure that the sales tax list view entire sales taxes the organization owes, taxes, and due amount
- For partial payment locate the Amount Paid column then fill the amount that you need to for each item
- Hit Select All if you wish to make a due tax payment.
- Choose Adjust if you require to make a credit adjustment
- Hit on checkbox named To be Printed to get a print
- Click on Ok
- You can monitor and edit the sales tax transactions in the sales tax account register
Seeking for advice?
I hope the above information is enough to pay the sales tax in QuickBooks Desktop for Mac. If you still have any doubts regarding the sales tax or face any QuickBooks issue simply give a ring at toll-free QuickBooks at 1800-816-6849. The professional team is there for you to solve all your queries. The team members are having years of experience in the same domain to figure out simple to complex issues regarding QuickBooks.
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