QuickBooks Online: Sales Tax on Invoices

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Күн бұрын

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@jessicafigueroa6498 9 ай бұрын

Thank you for sharing your knowledge. Your videos are clear and concise. Can you provide insights on the sales taxes implications when selling to another country? Is it taxable?

@HectorGarciaCPA 9 ай бұрын

Dont have experience in this area

@TinaOliveira-i5o Ай бұрын

This is a great video. Can you explain how to account for sales tax paid to a vendor at the time of purchase on resold items? I often pay the sales tax to reduce my use tax liability.

@AlondraRodriguez-o5u 8 ай бұрын

Hello. In California for filing the sales tax we report to the California Dept. of Tax and Fee Administration. With a seller's permit when we buy parts we don't pay the taxes as it gets passed to the customers. But there are a few times where for some parts we do end up paying tax on. In this case how can we add a line/section on the tax liability report to enter the "cost of tax paid for purchases resold prior to use" to deduct the tax paid on the part purchased and to only be able to pay the pending cost on mark-up price? I am new to QBO. Thank you.

@HectorGarciaCPA 8 ай бұрын

I dont know the sales tax rules for CA

@SandiDize Ай бұрын

I live in California. I have the same question. Did you find an answer to your question. Thanks!

@MGMerriman 9 ай бұрын

I certainly appreciate all the information you’ve provided on KZbin! I am curious how to track a loss. If a customer job exceeds the value of the equipment, they may abandon the equipment and not pay the bill. How should I document / track these types of transactions? I figure it must be a loss. I will be talking with my CPA soon. Just thought I’d ask. I use Quickbooks desktop.

@HectorGarciaCPA 9 ай бұрын

Just make a journal entry against Accounts Receivables and Bad Debt for the invoice value the customer did not pay for. The concept of “abandoned the equipment” might not be an accounting event

@marioopeno8787 9 ай бұрын

The best QBO tutorial. Detailed and depth explanation. Hi Hector, just a newbie in QBO. Just want to ask question regarding the Net Income showing in the Balance Sheet. In some QBO article that i read, it says that at the end of the fiscal year, QBO will automatically transferred the net income to Retained Earnings. So, comes the following year, what would be the presentation in the Balance Sheet in QBO. Will it show Retained Earnings representing the net income of the previous year and will show a net income for the current year? Your input is highly appreciated.

@HectorGarciaCPA 9 ай бұрын

Net income on curremt year and retained earnings all previous years net incomes

@yayabera 8 ай бұрын

Great topic! Sales tax is very confusing to me. Should I include sales taxes when we already paid taxes at the time we purchased the parts? Also, if a service invoice includes parts, does that makes the labor also taxable? We are based in Florida.

@HectorGarciaCPA 8 ай бұрын

QB tracks Sales Taxes in your invoices to customers. Not related to the sales tax you paid. If you include parts and labor, generally the whole thing is taxable

@AnaHernandez-oc4rg Ай бұрын

If I pick only Florida will it calculate for every county also? Or do I have to create a combination sales tax for each county in FL, even though we do not see the county as an add agency on the combination sales tax menu. Please advise.

@HeatherMullikin-p4u 3 ай бұрын

Hi Hector, I have learned so much from your videos! However, my family owns a restaurant and sometimes it's hard to apply what I've learned from a demo that invoices customers. We have a POS system (Toast) that is integrated with QB. It calculates the sales tax for us and it takes all the sales tax we collect and puts in the sales tax payable account in QB. We have already paid sales tax to the state for 2 months. How do I record this?

@HectorGarciaCPA 3 ай бұрын

POS accounting is its own world. I dont do any videos on that, as is not my specialty. I recommend you find a subject matter expert and do a 1on1 session and record it

@delonaarcher 9 ай бұрын

Have you filled out a California Sales Tax return from the QuickBooks online Sales tax liability report? I work with a company that sells to over 70 different cities/districts. The liability report does not group by county.

@HectorGarciaCPA 9 ай бұрын

I dont do California Sales Tax Returns, but I heard of that specific complaint! I dont know if there is a solution

@sarahtaylor7198 Ай бұрын

Is there a way to shut off Sales tax altogether? So it doesn't show up on the invoice? In Oregon we have every tax known to man except sales tax. I don't have the "turn off sales tax" button showing up on my screen like you do in the video.

@HectorGarciaCPA Ай бұрын

Some times it lets you and sometimes it does not

@hamidurv 9 күн бұрын

Nice Presentation thanks :)

@HectorGarciaCPA 6 күн бұрын

You are welcome

@AjazMuhammad-f4t 2 ай бұрын

Hi, Hope all is good there, Can you guide how to assign a location to Sales Tax Payment & Sales Tax Adjustment? As I am working on location wise bookkeeping & when I pay the tax it fall under "Not Specified" column. Your guidance will be highly appreciated in this regard. Thank

@HectorGarciaCPA 2 ай бұрын

Not my area of expertise

@TammyPrater-t4h 3 ай бұрын

We sell to multiple counties and cities within a state. I migrated from desktop to QBO and the tax rates imported correctly. However, when I go to pay each county and city QBO is not letting me insert the discounts according to the location that gave them. It all dumps into the master revenue department. How do I pay each locality? Thank you

@HectorGarciaCPA 3 ай бұрын

I dont think QBO has capability for this yet

@garenpletzer1532 9 ай бұрын

Trying to set up a account for the discount and it wont show up under account under the add an adjustment.

@HectorGarciaCPA 9 ай бұрын

You might need to leave the screen, add the account (as an other income or other expense), then come back to the screen

@maryhinkle1756 4 ай бұрын

I just recently converted to QBO from desktop and my state of Indiana has a 7% sales tax. It is necessary that I print my invoices for my customers and I noticed when printing QBO calculates the 7% tax dollar amount correctly but on the invoice it shows a random percentage amount on the tax line of the percentage of what the tax dollar amount is of the total of the invoice. My invoices have labor and parts, so these strange percentage amounts showing are very confusing on the invoices to the customers. Why would it calculate this amount? I do not understand for what reason it would be needed.

@HectorGarciaCPA 4 ай бұрын

No clue… sales tax is always a random rabbit hole

@tlatolon 6 ай бұрын

We are based in OK and sell all over the country. Mainly use tax for both state, county and city. how can I set it up for use tax?

@HectorGarciaCPA 6 ай бұрын

Never been able to

@seanfaerber4918 6 ай бұрын

Hello, I wish this would address more issues that I see with Cash basis and accrual basis accounting. My clients invoice and the sales tax is calculated automatically in quickbooks at the time of invoicing. However, they are cash basis and technically that quantity of sales tax should be calculated as if the time of cash receipt. What is best practice in this case where you still want to invoice the customer beforehand, yet maintain accurate sales taxes which should be calculated at receipt of cash. Please help if possible. I am worried about sales tax rate accuracy to protect clients from potential audits.

@HectorGarciaCPA 6 ай бұрын

Most states are accrual basis for sales tax purposes. Regardless of how the taxpayer does the income tax return.

@NancyGreco-h7v 8 ай бұрын

If client is using a 3rd party app that integrates with QBO and pushes the invoices over TO QBO, do we still need to use the QBO Sales Tax Feature?

@HectorGarciaCPA 8 ай бұрын

No… imported invoices will bring the sales tax as an item

@NancyGreco-h7v 8 ай бұрын

@@HectorGarciaCPA Thank you!

@MalindaWaller-wc5ni 5 ай бұрын

do I need to track Sales tax paid to vendors for products I sale in my store

@HectorGarciaCPA 5 ай бұрын

In US, No… BUT, you shouldn’t pay sales tax for resell-able items, otherwise you are paying tax twice

@AnitaRuybalid 7 ай бұрын

I have found out that QuickBooks isn't always accurate when I use the automated sales tax so I haven't been able to use this feature. Have you or your clients ran into this same problem? I am based in Nebraska.

@HectorGarciaCPA 7 ай бұрын

Yeah. Sales tax is a hot mess