Sales Tax Report: Comprehensive Overview
Navigation:
To access your sales tax report, go to Reports > Accounting > Sales Tax.
Our Sales Tax Report is designed to provide flexibility and insight into your sales tax data by supporting both accrual basis and cash basis accounting methods. This feature allows you to manage and report your sales tax accurately, depending on your accounting method.
Key Features of the Sales Tax Report:
1. Delivered Sales (Accrual) vs. Written Sales (Cash):
You can easily switch between accrual and cash basis views using the renamed tabs at the top of the report:
Delivered Sales (Accrual): This view shows sales tax based on when the performance obligation is fulfilled for each individual line item in the order. The report tracks sales tax according to the delivery date of each line item. This means if some items in an order are delivered at different times, the tax for those specific items is reported based on their delivery dates, not the overall order.
Written Sales (Cash): This view shows sales tax based on the date payment was made. Only sales tax from payments that were received within the selected reporting period is displayed, regardless of the delivery date.
2. Important Note on Internal Credit Lines (Cash Basis):
When using the cash basis report, keep in mind that if a customer uses an internal credit line to pay for an order, sales tax will only be recognized once the real cash is repaid to the credit line. Until the actual payment is received from the customer, no revenue is recognized for those sales under the cash basis.
3. Detailed Breakdown of Sales Tax Data:
By using the drop-down arrow next to each transaction, you can access a detailed breakdown of your sales tax data. This includes:
Order Information: View specific order numbers and the associated items.
Tax Rates: Breakdown of tax rates applied to each item.
Payment Details: Information on the payment method used and whether it was a full or partial payment.
Location-Specific Data: For businesses with multiple store locations, the report can filter sales tax information based on each location.
4. Filtering and Exporting:
Filters: You can filter the report by date range, store location, and accounting method (accrual or cash basis).
Export Options: Easily export your sales tax report into CSV or Excel format for detailed review and external reporting. You can export data by store location or in aggregate form.
5. Handling Multiple Tax Jurisdictions:
The report supports businesses that operate in multiple tax jurisdictions. It breaks down sales tax by state, county, or city, depending on where the sales were made. This ensures that you can easily track and remit the correct amounts to each jurisdiction.
6. Reconciliation of Sales Tax Payments:
If there are refunds or adjustments related to orders, the sales tax report will also reflect these changes. For example, if a customer returns an item, the corresponding sales tax adjustment will be reflected under both accrual and cash basis views.
7. Integration with Accounting Systems:
The sales tax report is designed to integrate with third-party accounting software, making it easier to automate your tax filing and reconciliation processes.
Steps to Use the Sales Tax Report:
Select Accounting Basis: Start by selecting either Delivered Sales (Accrual) or Written Sales (Cash) from the tabs at the top of the report, depending on your accounting method.
Set Date Range: Adjust the date range filter to view the specific period you are interested in.
Apply Filters (Optional): Use additional filters to refine the report by store location or jurisdiction.
Export Data: If needed, export the report in CSV or Excel format for further analysis or tax filing purposes.