Ask the Accountant…
Question: I have recently switched from QB Premier to QBO. I just pulled my first sales tax report that looks very different with some additional line items. Why is the report different?
Answer: When you migrated from Premier to QBO, some of the orders were written with sales tax calculations in Premier and some with the automated sales tax in QBO. This results in multiple lines of sales taxes data.
You will need to scrutinize your Sales Tax Liability Report to make sure that all invoices for that period are included. Then you might need to combine the categories, such as adding state sales from Premier to the state sales from QBO. You will notice that there might be two lines of sales from your state or from other taxable cities or counties. You may need to combine these to produce a complete report for the period so you can file with your state.
One way to avoid this is to migrate from Premier to QBO at the end of a sales tax period – month or quarter depending on how often you file). That way, all the invoices for that period will be calculated in the same program.
Once the initial differences are adjusted in the Sales Tax Liability Report, you should not experience this again since all will be calculated in QBO going forward.
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