Lesson 5-6: Create A Sales Tax Report – This free QuickBooks tutorial will show you how to create a sales tax report in QuickBooks Pro 2013. Before creating the report, it is important to determine the frequency of when sales tax should be remitted to the corresponding tax agency. If sales taxes are due every month, then you will create a report each month; if sales taxes are due annually, then you will only need to create a report once per year. For my fictional company, Joe’s Landscaping, the tax agency requires remittance of sales tax every month. Most tax agencies require that payment to be remitted within 2-3 weeks after the collection period. In this example, we are going to create a report with a collection period of January 1 – January 31. To create a sales tax report, perform the steps in the free QuickBooks tutorial video.
Here is a summary of the steps that were performed in the video below:
1. From the QuickBooks home window, select Manage Sales Tax towards the upper right corner.
2. In the Pay Sales Tax section, click Sales Tax Liability.
3. Choose the dates for which the taxes are due. You can do this by selecting a pre-determined period from the drop-down box, or you can select specific dates for your report. Be sure to select the dates that correspond with the period for which you must remit sales taxes. You may need to click refresh after you select the dates.
4. Once your report is created, you will see several rows and columns. The row headers will be the tax agency to which you must remit the taxes. The column headers will be categorized by Taxable and Non-Taxable Sales, the tax rate, tax collected and sales tax payable as of a certain date.
5. It is important that you are aware of the details of the tax report. You can view any invoice that is included in the report by using the “drill-down” feature. If you hover your mouse over any of the numbers in the columns, you will be able to drill down on the amounts to view the corresponding invoices.
6. Drill down on the any number in the Totals column and you will see each invoice included in the report categorized by taxable and non-taxable sales. If you drill down on the numbers in the non-taxable sales column, then you will only see an invoice if it has a taxable item on it; the same thing applies if you drill down in the taxable column. Drilling down on the Taxes collected column will list all of the invoices for which taxes are to be remitted. Any tax-exempt customer will not be listed when you drill down on the taxes collected column.