QuickBooks is accounting software that is very useful in terms of accounting and bookkeeping but other features like managing the sales tax rate makes it so unique as accounting software that probably takes care of all the aspects of accounting and bookkeeping.
(However, you may have heard about the countless errors that the software has but that is with every software which is related to accounting or bookkeeping, in fact, it is just QuickBooks who takes good care of these kinds of complaints by rolling out the regular updates and tools like QuickBooks File Doctor and QuickBooks Tool Hub.)
In this article, you will get to know about the sales tax rate in QuickBooks Desktop, How to change the Tax rate, and if you want to add or edit a sales tax rate in the most detailed way possible.
The Sales Tax rate in QuickBooks Desktop
QuickBooks can consequently do the sales tax calculations for you on your invoices and receipts for simple and precise filings. Then, it lets you know when your tax payment is due, so you can file on time and stay away from additional charges.
You must create a tax rate for your business so that you can keep an account of your tax rate and also you can manage it with the help of the QuickBooks Desktop software. Here’s how you can set it all up and get started.
How to change the Tax rate in QuickBooks Desktop
To change the tax rate of the Item in the List section you just need to follow these given means:
- Click on the given Lists menu, and then click Item List.
- Now search and locate your Sales Tax item that you need to change or edit.
- Right-click on the Sales Tax item and now choose ‘Edit Item’.
- Change the Tax Rate into the rate that you want to change it with.
- Now simply click on ‘OK’ to end it with.
These are some simple steps that you need to follow in order to change the Tax rate in QuickBooks Desktop.
How to Add a Sales Tax rate in QuickBooks Desktop
To refer to taxes we refer to all these taxes as tax. You’ll see the taxes that apply for your state or country such as VAT, GST, state, provincial, etc.
To add a Sales Tax rate in QuickBooks Desktop you just need to follow these steps given below:
- From the menu, choose Settings, then choose Tax Rates. (If this is your first time, you’ll see an introductory screen: choose Add tax rate to get started.)
- Select +, then choose Single tax rate or Combined tax rate.
- Enter information about the tax rate:
- For a Single tax rate, add a Sales tax name, Agency, and Rate, and then choose Done.
- For a Combined rate, add a Sales tax name, Component, Agency, and Rate, and then choose Done. (Combined sales tax rates can include new as well as existing rates.)
- Select a Combined tax rate if your tax agency makes you break down this tax into multiple parts, such as city, county, and state taxes.
If you follow these steps then you are good to go and add a sales tax rate in your favorite accounting software that is QuickBooks desktop.
To conclude, QuickBooks is a software that literally covers all the aspects of accounting and bookkeeping. However, if you have any issues or errors that you are facing you can always use QuickBooks Tool Hub, a tool that comes straight out of Intuit the mother company of QuickBooks Desktop.
The idea of this post is to educate you more about the implementation of the Sales tax rate in QuickBooks Desktop. how it can prove to be one of the best features of QuickBooks Desktop and How to properly make use of it by taking the detailed steps that are mentioned above.
Not only that there are pointers like how you can edit, change, and add sales tax rates in QuickBooks desktop. Please give this article a careful read in order to understand the role of the sales tax rate and how Quickbooks can take good care of it. Hope that you find this article worth your time.