Ask the Accountant…
Question: How can I see my sales in each state using QuickBooks Online?
Answer: QuickBooks Online includes a built-in Economic Nexus report that breaks down your state-by-state sales:
1. Go to “Taxes” in the left-hand menu.
2. Select “Sales Tax.”
3. In the top right corner, click “Economic Nexus.”
What is “nexus,” you ask? Nexus is the connection or presence your business has in a state—whether economic (sales volume) or physical (inventory, employees, etc.)—that creates an obligation to register, collect and remit sales tax there.
The Economic Nexus report shows how much you’ve sold into each state and compares it against that state’s economic-nexus threshold. Once your sales exceed a state’s threshold, you must begin filing, collecting and remitting sales tax in that jurisdiction.
Please email accounting questions you would like considered for the column to [email protected] with the subject line of “Ask the Accountant”.
