QuickBooks Team

Re: Set up Automated Sales Tax for Cash accounting method

Hi there, Vitan.


I’m happy you turned to the Community about the Sales Tax feature’s accounting method. Let me share some insights about this.


Since you’re using the Cash basis method, you’ll still be able to use the Automated Sales Tax feature to track the businesses’ sales taxes. To do this, make sure to set the company’s accounting method to Accrual first before activating the feature.


Here’s how:

 

  1. Go to the Gear icon at the top, then choose Account and Settings.
  2. Click on the Advanced tab on the left panel.
  3. Click on the Pencil icon for Accounting.
  4. Choose Accrual on the Accounting Method drop-down.
  5. Click Save and Done.


Next, you can start activating the Automated Sales Tax. Here’s an article with detailed instructions and a video tutorial about the process: Set up process.


Please go directly to the Set up automated sales tax section. Once done, change the accounting method to Cash.


In regard to outstanding payments, review them first and check the transactions associated with it. If in case you’ll have to create an adjustment, check out the steps below:

 

  1. On the Sales Tax page, choose the Start Return button next to the tax you’re working on.
  2. On the Return summary screen, click on the Add an adjustment link and choose the appropriate reason.
  3. Click on the drop-down for Account and select where you want to post the transaction.
  4. Enter the amount.
  5. Click on Add.

We strive to deliver products that are well-suited to our customers' needs. Hearing your suggestions and ideas can even help our Product Development Team achieve this goal.


I encourage you let them know adding the Cash basis to automatically track sales tax is important for your business. Customers suggestions help them identify the features and options that you’d like implemented in future product updates.

 

To send feedback, go to the Gear icon at the top and select Feedback.

 

The information I provided should point you in the right direction.

 

Be sure to let me know if you have additional questions about QBO. I'll be around to answer them. Have a good one.