Updating sales tax rates in quickbooks
For example, to track revenue from your out of state customers, you’ll should create a tax code called OOS (for out of state).
If you sell to resellers, you will want to define a tax code of RSR (for Reseller).
Quick Books’ sales tax tracking features help you track the “who, what, why, where, and how much” of sales tax.
The ultimate goal of Quick Books sales tax tracking system is to properly calculate and collect sales tax and to properly report revenues tax collections, and tax payments in two two-dimensional reports called Sales Tax Revenue Summary and Sales Tax Liability.
When you set up customers (the “who”) in Quick Books, you assign a default are used for three purposes.
You should not have a Sales Tax Code called “NON” (Non-Taxable), because each non-taxable Sales Tax Code should specify WHY a customer, or an are about the rate of tax to be charged, and which tax agency collects that tax.
You should set up tax items for each individual tax you need to track, along with the rate, and agency to which you pay that tax.