In this webinar Mark Chapman (Gold Certified QuickBooks Pro Advisor) does a deep dive into how tax is set up in QuickBooks. He also discusses taxation in the online store vs. within QB.
Click here to submit questions/issues related to taxation in QuickBooks to Mark Chapman.
Taxes in QuickBooks Best Practices
- Know what is taxable and who you are paying tax to
- Know your tax localities and rates
- Know what items are taxable or non-taxable
- Double check tax rates in online store vs. tax rates in QuickBooks
- Remember to zero out your liability account
- A non-taxable customer must have a resale # - proof that customer is non-taxable
- Multiple tax rates increases the complexity of setting up tax rates for items and customers
- Utilize the QuickBooks Help to assist you with setting up taxes in QuickBooks
These were the questions asked during the webinar
1) If you have online sales and on site sales (Brick & Mortar), how do you tell QB to calculate the tax on the on site (Brick & Mortar) sales but ignore tax calculation on the online sales?
2) If I have two provinces from which my orders come, how can I ensure that the taxes are synced fine? Do I need to define every tax, single and compound on QB?
3) What are the disadvantages of calculating taxes in the online store only?
1) I do drop shipping and all my orders are processed automatically but in QB it shows that the customer OW me money. Without having to go in and change all of the customers balances one by one, is there a similar way to do to like you did with the inventory? To change all the money owed from Customers to 0?
2) Is there a way to change all of your products at once (to taxable) or do you have to go one by one to change the tax status?
3a) Can you set all of your taxing authorities up in bulk also? I live in Florida, I only must collect FL taxes, each county has a different code.
3b) My tax happens at the website, then it goes to eCC, then to QB. I can see leaving it out of QB (the tax info) but then it brings it over as "State tax, so it messes up QB because I have the tax in both. And I now have a retailed store, but its manual input, so, is there a way to have it come over with the right data?