Hello! I recently learned we must collect sales tax in multiple states. My question is, can Quickbooks Desktop 2017 handle this long-term or can you run out of spaces for enough sales tax rates. I see that Quickbooks Desktop has a limit of 10,000 sales tax codes and 50 Sales Tax Groups. If that's the case and I understand properly what that means, you could potentially fill those up and still need more rates entered? OR can you calculate your sales tax on your sales platforms/keep records by that and by your filings for audit purposes and then have only one sales tax item within QB and just enter it as a flat rate (whatever your sales platform calculates) on each sale?
Actually you can have a total of 10,000 items on your items list, which includes all of the other items you use on purchases and vendors.
So, very likely this means you have little room for many sales tax items. What is the case where you'd need so many items?
We sell through Amazon FBA, which we've learned means we have sales tax liability in all the states Amazon warehouses our products, and with all the potential groupings of state/county/city taxes, there are a ton. Do you know if I can just enter one sales tax item as an expense (instead of a rate where it's trying to calculate) if I have other methods of record to back up the amounts collected/paid?
Hello there, @blueridgecabincleaning.
Thank you for posting in the Community. Allow me to help share some insight about recording the sales tax collected or paid on QuickBooks Desktop.
Yes, you can use one sales tax item and enter the lump sum amount you've collected. However, you'll not be able to see the specific details on the reports, like the total amount paid for each rate.
You have the option to enter a description or notes in the transaction to track the total amount paid for each rate or location manually. For more options on how to track your sales tax, I recommend reaching out to your accountant. Your accountant can give more expert advice about this to make sure your books are recorded correctly.
I've attached the following article about managing sales tax for additional reference: Collect sales tax.
That should get you back on track. Keep me posted if you have any other questions about sales tax. I'll be happy to help you out. Wishing you and your business continued success.
RE: We sell through Amazon FBA, which we've learned means we have sales tax liability in all the states Amazon warehouses our products, and with all the potential groupings of state/county/city taxes, there are a ton.
I wouldn't try to duplicate this detail in QB. Does Amazon help with the sales tax reporting you'll need to fill out tax forms? If so, then that may be your out, as you can use them to track their sales by location.
How do you record the Amazon sales? Individually? Manually?
I am just now starting to do the bookkeeping for my husband's business with this, so I haven't entered too many of the sales yet. (Was trying to figure out all of these intricacies first.) My plan was to enter them in lump in conjunction with each payment statement from Amazon, i.e. if we sold 38 thing-a-ma-jigs and 42 doo-dads during the sales period related with that payment date range, I'd just put it all on one sales receipt with Amazon as customer. If I'm entering all the individual sales tax rates, obviously, I can't do this because I'd need a different sales receipt for each tax rate. However, if I enter sales tax as just a one-line and have the records for sales tax elsewhere, I could still do it this way. Amazon and Shopify do calculate the sales tax. Ebay is a bit wigglier, but I think I learned how to do it there as well.
Thanks! And yes, I know I couldn't have any kind of record breakdown within QB if I do it that way, but if I have the info within my records from sales platforms, it seems it'd be sufficient in the case of an audit.
Hi there, @blueridgecabincleaning.
I appreciate you getting back to us and providing extra details. I can help you record your transactions in QuickBooks.
Since Amazon and Shopify already take care of recording your sales tax, you can just import those transactions in QuickBooks. That way, you will save your time by manually entering them.
Here's how to import transactions by batch:
On the other hand, if you wish to manually enter them in QuickBooks, you'll have to enter the items and set up sales tax. You will also have the option to create sales tax codes for different states and agencies.
Check out this link to know the maximum number of list entries in QuickBooks Desktop.
That should get you going today. Drop by the comment section again if you have more questions. I'll be happy to help you further. Have a good one.
I don't think I can import transactions into Quickbooks Desktop Pro 2017, and I don't see an Accountant Menu. I'm also concerned about importing. I'm also using QB for my inventory and when I tried importing from my bank account on a different company, it didn't transfer into to the proper categories, etc, which messed up my costing. (The other company didn't have inventory; but since I saw it didn't mesh well, I'm afraid the same thing would happen.)
Thanks for keeping us up to date about this, blueridgecabincleaning.
The Accountant menu is only available in QuickBooks Desktop Accountant versions. For QuickBooks Desktop Pro, you might need to create the transactions one at a time.
Meanwhile, downloaded bank transactions stay in the Bank Feed's Transactions List. From there, you can add or match these transactions to your QuickBooks register manually. You can browse this article to know more on how to categorize the transactions: Add and Match Bank Feed Transactions.
We'll be around if you have follow-up questions about this.
Thanks! Question regarding bank imports: it seems like I have to already have all the transactions added into Quickbooks then match them to the imported transactions. I guess I have trouble seeing how this is helpful as the helpful thing would be if I didn't have to enter them into Quickbooks. Also, how would it handle things like the following scenario: Amazon sends us a payment, but that single transaction in the bank statement may correspond to 50 different inventory items being sold plus returns, fees, sales tax, etc. Thanks!
Thanks! Question regarding bank imports: it seems as though I would already have to have everything entered into QB, then just match the bank import to those transactions. If that's the case, I have trouble seeing how a bank import is helpful as the difficult part would be entering each transaction into QB to begin with. Also, how would it handle the following scenario: Amazon sends us a payment, but that single transaction in the bank statement may reflect the sale of 50 inventory products plus returns, fees, sales tax, etc. Thanks!
It's nice to see you here again, blueridgecabincleaning.
I can provide you additional information about importing bank transactions and handling payments via QuickBooks Desktop.
To answer your questions, the banking page is where you connect your accounts and download transactions. This is sometimes known as “Bank Feeds.” Why connect your accounts? Because it saves you from lots of manual data entry. Instead of manually typing it all in, let QuickBooks get the information for you.
You choose whether to add transactions as new items or match them up with items you already entered in QuickBooks. After you are connected, QuickBooks downloads your bank data automatically, usually at least once daily.
You can get more insights in these articles:
Amazon payments, return fees, and sales tax can also be recorded using a bank deposit feature in QuickBooks Desktop and manually enter the amount as negative.
You may find these articles:
Keep me posted if you require more information about importing bank transactions and payments. I'm always here to help you out.