Skip to main content

SUMMER SAVINGS 90% OFF QuickBooks for 3 months* Ends 8/27

Buy now
Switch to QuickBooks and 70% off for 3 Months
Talk to Sales: 877-683-3280
Hours
Mon - Fri, 5am - 6pm PST
Sat - Sun, 7am - 4pm PST
Product support & help
Need help signing in?
PattiB11
July 20, 2022
Question

Sales Tax Liability Report & P&L Gross Income

  • July 20, 2022
  • 3 replies
  • 79 views

Hello,

I am the bookkeeper for an online business, that sells all over the USA. We just started using QB Online a few months ago. QB syncs sales through One Saas for EBay and Shopify and my client's website.

 

We were just looking at a sales tax liability report which shows non-taxable sales as $26K.  However, the P&L shows a gross income of $156K, most of which is non taxable out of state sales.  Can anyone tell me why the non taxable out of state sales is not showing up correctly on my sales tax liability report, when compared to my P&L? The State of Colorado requires us to report all sales and then break out the non-taxable sales.

 

Thanks, PattiB11

 

3 replies

Charies_M
Level 9
July 20, 2022

Hi there, PattiB11.

 

Let's make sure both reports Sales Tax Liability Report and Profit and Loss. If all that doesn't help, please check out this this discussion about unmatched balances on P&L and Sales Tax Liability.

  1. Open the report.
  2. Filter the Report period of each report.
  3. Click anywhere to reflect changes.

 

Also, you can check out this article about the complete sales tax workflow: 

 

Here are some related links that will help you run reports in QBO:

 

Be sure to get back to me if you have additional questions running report. It would be my pleasure to help. Have a good one!

YMMC
July 14, 2023

Thank you for asking this question! I am also from Colorado and have the same problem. I assume we should file our out of state non-taxable sales with the Department of Revenue based on our P&L gross sales figure? Is that what you think also? I have been spending way too much time calculating sales tax this month. Your help is appreciated. Thanks!

Rea_M
Level 10
July 14, 2023

Hello, @YMMC.

 

Yes, you can file your out-of-state non-taxable sales with the Department of Revenue based on your P&L gross sales figure in QuickBooks Online (QBO). I'll gladly show you how to get this data below.

 

QuickBooks automatically calculates the total tax rate for each sale based on your customer's tax-exempt status, where you sell and ship items, and what you sell. To get the correct gross sales amount on your Profit and Loss report, you need to make sure to select the Tax box for both taxable and non-taxable items when making a sale. 

 

When you're ready to pull up the P&L report to see your out-of-state non-taxable sales, here's how:

 

  1. Go to Business overview, then select Reports or go to the Reports menu.
  2. Open the Profit and Loss Detail report.
  3. Select Customize (customize report if necessary to focus on specific details).
  4. Click Run report.

 

Moreover, if you also need a list of all customers with non-taxable sales, you can run the Taxable Sales Detail report. Refer to this article for the complete guide: Create a Non-Taxable sales report in QuickBooks Online.

 

Also, after viewing a summary of your taxable and non-taxable sales, record your sales tax payments. You may want to check out this article in completing this process in QBO: Manage sales tax payments in QuickBooks Online.

 

If there's anything else you need about sales taxes and financial reports in QBO, please don't hesitate to let me know in the comments below. I'm always ready to help. Take care, @YMMC.

Need QuickBooks guidance?
Log in to access expert advice and community support instantly.
Terms & ConditionsAccessibility statement