While QuickBooks is quite user-friendly and helps in keeping the finances and the taxes up to date for your business, there are few things that as a user you need to be updated about. One such ting is continuously updating taxes. But if you are a beginner then figuring out, how to change tax rates in QuickBooks may be challenging for you. But you need not to worry as we have you back.
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How to change tax rates in QuickBooks?
Every state changes and updates the tax rates every year, so you are required to update the tax rates every March 31st to match up with the government guidelines. Here is what you would need to do for changing sales tax rate in QuickBooks…
- Open your QuickBooks company page and go to the Reports on the main menu on the top.
- Click on Reports and from the drop-down menu select List.
- From the drop-down menu click on Item List.
- It will show all the items that are in QuickBooks. If you want you can customize it.
- To do that go to the menu bar on the top and locate Customize Report and click on it.
- A new window will open, there click on Filter.
- Next pick Account and from the drop-down menu select All liabilities.
- Next click OK.
- You will notice that this will give you only your sales tax.
- It is recommended that you can print the sales tax list out.
- To do that go to the Print icon on the menu bar, from the list select Report.
- A new window will open, in which you have to select your printer and click on the Print button.
Next go to the internet and search for the recent sales tax details of your state and locality. You might notice that depending on the countries and cities the sales tax rate might change from the old one. This is where the old sales tax print out comes in handy as you can see the changes rather than going back and forth.
- After checking the sales tax rates from the website on the QuickBooks page click on List on the menu bar.
- From the drop-down section click on Item List.
- Instead of going to the list of cities that has changed the rates and editing them, you can make the old rates inactive, by right clicking on the city or county and clicking on the Make item Inactive.
Note: This method is recommended, as there might be some invoices pending from the time before the taxes have been changed. So instead of getting confused or deleting the old tax items after all the invoices from the time frame before the rate changes have been done, make the item inactive.
- Next go down of the page and click on Item
- From the list click on New
- A new page will open, click on the Sales Tax Item for the Type.
- Write in the name of the county or district or whichever way you want to identify it for Sales tax Name
- Under the Description, enter Sales Tax City of (name).
- Under the Tax Rate check the tax rate of the city from the Tax rate website and enter it.
- Next under the Tax Agency Vendor, you have to enter the name that you collect it from. There is a drop-down list, select it from there. You can check the vendor from Internet.
- Next click on OK.
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These steps will help you in changing the tax rates as per the state and when you make your invoice next, they will automatically get updated as per the new rates.
Hope you are now able to get your QuickBooks issue sorted. But if you are still figuring out on how to change tax rates in QuickBooks then its time you get in touch with technical support. Reach out to us round the clock or chat with us at your convenience.