2016-11-21 00:00:00 Accepting Payments English Learn how a cloud-based payment processing system can make the collection and tracking of sales tax easier. Review the basics of how these... https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/Small-Business-Owner-Uses-Cloud-Payment-Processing-System-For-Accurate-Sales-Tax-Collection-Accounting.jpg https://quickbooks.intuit.com/ca/resources/business/use-a-cloud-payment-processing-system-for-sales-tax-collection/ Use a Cloud Payment Processing System for Sales Tax Collection

Use a Cloud Payment Processing System for Sales Tax Collection

2 min read

Cloud payments? The term might sound lofty, but processing your customers’ payments in the cloud makes the collection of sales taxes, and all your other accounting entries, much easier – not to mention more accurate.

What is Cloud Computing Technology?

Cloud technology simply means that, rather than all of your transactions and computations being stored on a singular computer or server on your business’ physical premises, they are located online. Many companies today send at least some of their data, software, or other programs online to a remote server.

Cloud computing is rather common, but the use of cloud computing as a means of payment processing is somewhat new. Cloud merchant payment processing involves “gateways” – the point-of-sale (POS) system is located online but is linked to the merchant’s account. This gateway between the POS and the merchant’s account communicates between the multiple other networks and banks involved in each transaction.

With cloud processing, you can enjoy increased functionality and flexibility of accepting payments via mobile phone, online, or counter-top terminal, all through one integrated point-of-sale system. Do you offer your customers loyalty rewards or gift cards? Customer redemption of points is seamlessly integrated into your platform, so after that tenth car wash, your customer can redeem their points for a free soda from the same machine they used to swipe their credit or debit card. Most cloud payment processing systems have connected, dedicated apps that allow you to track sales data in real-time and run reports – no matter where you are. Also, there are no limits on the amount of data you can store.

Is Cloud Payment Technology Safe?

It is. And there are several benefits of switching to cloud payment processing. The most advanced data security and encryption technology is being used by cloud payment processors today, meaning your information is much more secure in the cloud than on a physical machine on your premises. Not to mention that your transactions are continuously backed up, meaning no more manual entry of transactions, and your system is always up-to-date.

With QuickBooks, you can enjoy cloud payment processing and feel secure knowing your information is safe. When you send invoices to your clients for payment, you can allow your clients, customers, and vendors to pay you online. From your dashboard, you can see which invoices have been paid and which ones haven’t – you can even see which invoices have been viewed by your customers.

On the invoice, you can customize sales tax rates and tax types depending on your client’s location. Payments are instantly recorded in your accounting software and taxes are noted separately. You can run reports at year-end to see the amounts of sales tax you’ve collected to prepare for filing your remittances with the Canada Revenue Agency or other tax-collecting agencies by province. QuickBooks Online can help you get paid faster. Start accepting payments today with QuickBooks.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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