How the pre-file check works

The pre-file check helps you review your gross sales totals by pointing out where there may be discrepancies from income reported in your financials. Taking a few extra minutes to reconcile your numbers either by using the pre-file check or following some reconciliation best practices can help you avoid correcting your return later.

Availability

Pre-file check is available in the following plans:

• QuickBooks Online Plus
• QuickBooks Online Advanced
• Intuit Enterprise Suite

What the pre-file check does for you

The pre-file check helps you review your sales numbers before you file your return.

1. It compares income from your Profit and Loss report with gross sales for your specific sales tax return.
2. It shows where those figures don’t match.
3. It lists specific transactions that contribute to the difference.
4. For each flagged item, it provides suggestions on what to review and resolve. It also gives you the option to ignore valid differences.

The pre-file check can help you quickly identify and understand differences between the Profit and Loss report and gross sales amounts in your sales tax liability report. This can help you:

• Speed up the time you spend manually comparing reports and reconciling data.
• Focus on details that may help you fix issues before filing.

Note: your transactions aren’t changed automatically. You still choose what to update.

Think of the pre-file check as an automated assistant to help you focus on where you should look to make sure everything looks accurate before you file.

What the pre-file check doesn't do

Currently, the pre-file check focuses on helping you confirm your gross sales totals, but doesn’t flag specific tax errors just yet.

Best practices for reconciling your sales numbers

If you use other plans such as QuickBooks Online Simple Start or QuickBooks Online Essentials, here are some best practices for reconciling your sales numbers for reporting in your sales tax return.

1. Make sure you're comparing the same data

If the numbers in your Sales Tax Liability report don’t match the numbers in your Profit and Loss report:

• Confirm both reports use the same accounting basis (cash or accrual).
• Make sure the date range is identical on both reports.

Keep in mind:

• Your Profit and Loss report shows total income from all sales and other sources.
• The Sales Tax Liability report shows gross sales by tax agency.
• To compare totals, you may need to add each tax agency's state gross sales, any custom rate sales, and also any sales not tied to a tax agency. This will make sure that your Profit and Loss total matches your sales tax totals.

2. Review nontaxable transactions

If your sales are lower in the Sales Tax Liability report than in your Profit and Loss:

1. Go to All apps , then Sales Tax, then Sales tax returns (Take me there).
2. Select the Reports dropdown, then Nontaxable transaction review. This report shows sales that are in Profit and Loss but are, for whatever reason, missing from your sales tax liability.
3. For each transaction that’s been flagged by the pre-file check, make sure the following info is present:
   • Customer
   • Transaction date
   • Ship From
   • Ship To (Location)
4. Add any of the missing info to the transaction as needed. 
5. Make sure the tax calculation has been updated and save the transaction. The transaction should now be visible in your Sales Tax Liability report.

Some transactions imported from third-party sales platforms may be missing sales and tax details and you may need to manually add this.

3. Check third-party app transactions

If you use platforms like Shopify, Square, or other apps:

• Make sure sales tax is enabled in your third-party app and you’re collecting tax in every state where required.
• Make sure the app sends all required sales details into your Intuit product, including:
  • Customer
  • Transaction date
  • Ship From
  • Ship To (Location)
  • Product description (what is being sold)
  • Tax designation
  • Tax applied (if applicable)

Important: If service or processing fees appear on a sales transaction, they can reduce your gross sales for sales tax purposes. Instead, add those fees to an expense transaction so your gross sales stay accurate.