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: 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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If you had to increase your prices 20 percent tomorrow, how would your customers react? After you absorbed unflattering comments and disappointment, your customers would buy fewer products, if they bought any at all. Beyond our industry, consider what we buy every day: clothing, footwear, housewares, electronics and so on. How would you feel the…
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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: 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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Question: I am starting out as an ad specialty distributor. Is it better to set up my books on a cash or accrual basis for tax purposes?
Yes, QuickBooks allows you to set up each portion of sales taxes separately as a sales tax item and then as a group sales tax. For instance, in North Carolina we must collect sales tax for state, county and transit taxes.
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