I`m very new to bookkeeping. This is probably a very basic question.
Is there a typical tax option I can select? When the tax is clearly displayed I choose H for HST. But besides that there's multiple options that I'm confused about. There's out-of-scope, exempt, zero. What's the difference and does it really matter which of those I choose? What's the impact of making the wrong selection? If tax isn't mentioned on an invoice do I just assume there isn't any? I have an invoice for $10K for flight tickets with no tax mention, which is very odd.
It's great you're using QuickBooks to familiarize yourself with bookkeeping. I'd be happy to steer you in the right direction.
Based on your description, it sounds like you've already set up your taxes. In case you haven't yet, check out this helpful article from our Community: How to set up a new sales tax code.
Making sure you're using the right tax code is a good exercise for preventing errors in your books.
For more info on this, check out these posts on our community as they go over the difference between the two tax codes:
As for the invoices, they may be inclusive of tax and if they are, you can just select the inclusive of tax option is QuickBooks.I also recommend contacting an accounting professional to learn more about the effects of each of the tax rates. If you're not in contact with one, I encourage you to search for one on our website using this link here. Doing this will help prevent any future discrepancies.
In case you have other questions, feel free to contact our support team using this link here.