QuickBooks is one of the best accounting applications for small businesses, which is why it’s constantly improved and updated. Since it has been introduced, several upgrades have been made to this application to make boost its performance. Intuit has an active feedback system where it regularly asks users what they want and makes that feature available as fast as possible.
One of the very useful features that QuickBooks introduced on the demand of their users is the sales tax calculation service. With this feature, companies can determine the amount of sales tax applicable on customer transactions. You can also set a company default rate and decide which customer you want to tax regularly so that you can create an automated procedure.
What makes this extremely easy is that you can enter the default tax rate of your company and apply it to all the transactions automatically. So, whenever you create a sales receipt or invoice for a new customer, this tax rate would be written there so that your customers know exactly what they are charged for.
However, if you need a different tax rate for a particular customer, you can change the rate through their account settings. Once you change the tax rate for a particular person, the rate will be remembered by QuickBooks and will be used for all future transactions with that client. If you want to bring that customer back to the default rate, you will have to change the rate for them through their account settings again.
To set the default tax rate, go to the “Company” tab on your QuickBooks. From there, click on the “Sales Tax Center” option and select “Edit Tax Settings”. On that page, you will get the option of setting your default rate. You also get the option to enable taxation automatically for all new customers whom you add to your QuickBooks after that.
There is also the option of selecting which customers are taxable and which aren’t. You can find a setting tab with each customer record from where you can decide whether you want to exempt that customer from taxes or not. You can also see a list of all your taxable customers by running through the Customer Contact List report. A link to this report (which now includes new features like Taxable Rate and Taxable Field Status) can be found in the Sales Tax Center.
With the new improvements made to the Sales Tax section, QuickBooks makes it much easier for you to keep track of the taxation that you apply to customer transactions.