One of the most renowned taxation & accounting software of today’s world, QuickBooks is largely recommended by financial advisors, CPAs & experts of accounts. Due to its major support lines in various fields including, Human Resources department, Payroll management & sales tax, it is gaining control over a big part of the market world. Almost millions of businesses are claiming their short-term business goals with the backend support of software powered by Intuit.
Recently, Intuit has announced one of the most waited for updates of QuickBooks online which will make online sales tax management even more flexible & reliable for businesses. Though, big-scaled businesses have their own CPAs which make tasks related to auditing & sales tax reports easier whereas small-sized businesses find it a bit harder to forecast accurate sales tax reports. So, the update in QuickBooks online sales tax management will significantly be going to help small-sized businesses.
Why Is Sales Tax Important?
As per the rules of government, any business who sells taxable goods in the USA or any other country has to pay the sales tax. For businesses who have just started, it is a bit difficult to understand but in order to do business with taxable items, the owner must have to deal with sales tax as well. Each country contains its own set of rules & regulations regarding sales tax. So if you’re selling items in multiple regions, you must also have to fill a different range of sales tax.
Many times, Small-scale businesses have to face issues due to the inaccurate filing of tax which obviously occurs only when the sales tax reports are full of glitches. Till now, the sales tax feature in QuickBooks Online is very simple i.e. easily understandable by new users as well.
Where Was QuickBooks Online Lacking?
If I talk about the initial procedure of tax update in QuickBooks Online, the user needs to enter sales tax rates manually and have to keep them up-to-date after then on their own. The very first phase where ambiguity can occur in- determining the sales tax rate to apply so that afterward process can begin. If any use put up wrong sales tax rates then obviously, reports will be inaccurate. On a vast survey, Intuit itself concluded that sorting out the sales tax according to situations was one of the biggest issues.
The crucial task of accounting software is to saves user time & offering them precise reports within the required time. And, unfortunately, QuickBooks Online wasn’t excelling in both cases when it comes to Sales tax!
QuickBooks Online Sales Tax Updated
As most of its users are known, Intuit never fails to make their clients happy and that’s the reason that the company keenly worked on the issue and solved it by releasing the new update. The new update of QuickBooks online will control & manage businesses sales tax calculations precisely and leaves no chances for ambiguity any further. The advancements that your business will have after switching to the new update of QuickBooks Online are:
1. The user only needs to select the appropriate tax agencies with whom they want to work else all information related to sales tax will be generated automatically.
2. Based on a few parameters such as your address, consumer’s address, item trade & date of invoice precise rates will be added to the invoice during creation which will make the process easier.
3. Frequent reminders will be generated on the software main screen in order to remind users of their due accrued sales tax payments to agencies.
For now, the update is only available for US versions of QuickBooks online & QuickBooks Online Accountant as well. In order to avail the update, users must need to set-up sales tax in their QuickBooks online.