Ask the Accountant… Question: I have to file sales tax in multiple states. How does QB Premier handle that? Answer: In QB Premier (and Enterprise), you create sales tax items to reflect each location and rate for which you make sales and collect sales tax. Many states, such as Louisiana, have sales tax codes that…
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QuickBooks Online (QBO) is one of several options from QuickBooks. It is very different from QB Premier or Enterprise, which are more robust and better suit our industry. For instance, QBO does not have customer sales orders, which are pivotal in QB Premier and Enterprise. That being said…
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Ask the Accountant… Question: I need to charge my customers 7.5% in sales tax, but 6% is for the state and 1.5% is for my county. How do I handle that in QB Desktop so I can file with the state, but just show the 7.5% to my customer? Answer: Sales tax is complicated, and…
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Ask the Accountant… Question: Is there a way to know if my sales tax report is correct? Answer: I always suggest reviewing the information on your sales tax report before filing. The report is only as correct as the data you enter into QB. To begin, are you up to date with your bank and…
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Ask the Accountant… Question: I have sales in several states. Do I have to collect sales tax in states other than my own? Answer: Sales tax has always been a complicated issue, and it was made infinitely more complicated by the Supreme Court ruling in South Dakota v. Wayfair in 2018. The decision means that…
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Ask the Accountant… Question: If I do my taxes based on when I get paid for orders, does that mean I pay my sales taxes the same way? Answer: Not necessarily. The basis with which you calculate your income taxes does not have to be the same as your sales tax basis. There are two…
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Question: I have online stores. Do I need to collect sales tax on web sales? Answer: It used to be that you only had to collect sales tax in other states if you had some sort of presence or “nexus” in that state. Everything changed with the Supreme Court decision South Dakota v. Wayfair Inc.…
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Question: I need to change sales tax settings for a large number of my customers. Do I need to go into each customer to make the changes? Answer: No, fortunately! QuickBooks has a wonderful feature to save you time with that chore. Go to “Lists”>”Add/Edit Multiple List Entries”>”Select Customers” from the dropdown box at the…
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Question: How can I find out if I have to collect sales taxes on additional charges, such as screen charges and freight? Answer: Contact your CPA or the department of revenue for your state, because sales tax varies by state—and sometimes by county. It is most likely that these extra charges are subject to sales…
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Question: Do I have to collect sales tax for out-of-state sales? It depends, and it’s complicated. State governments would like to collect as much sales tax as possible and, with declining revenues over the last several years, are looking to every possible source.
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