A Comprehensive Guide To Create Sales Tax Liability Report In QuickBooks
Sales Tax Liability Report in QuickBooks provides a comprehensive summary of taxable and non-taxable sales, along with the total sales tax collected, to help businesses manage and comply with their sales tax obligations effectively. In simpler terms, it shows the total amount of sales tax you owe to tax authorities. It summarizes sales tax collected from customers, any adjustments or credits, and helps you determine your payment amount and due date. For any business owner, it is very important to learn how to create Sales Tax Liability Report in QuickBooks. In this guide, we will discuss detailed steps to generate a Sales Tax Liability Report.
Accessing Sales Tax Liability Report in QuickBooks
Follow these steps to generate a Sales Tax Liability Report in QuickBooks.
- Open QuickBooks.
- Go to the “Reports” menu.
- Select “Sales Tax” from the drop-down menu.
- Click on “Sales Tax Liability.”
- Generate the report.
Create a Non-Taxable Sales Report in QB Online
Follow the steps to generate a report in QuickBooks Online that lists all customers with non-taxable sales.
- Go to Reports.
- Access the search field.
- Type and select Taxable Sales Detail.
- Click Customize.
- Access the General dropdown.
- Choose the desired date range.
- In the Filter dropdown, select these options/checkboxes:
- Customer Taxable, to include all customers with non-taxable sales.
- Distribution Account, then choose All Income/Expense Accounts from the dropdown to remove the A/R Source line from the report.
- Product/Service Taxable, then select Non-Taxable to adjust the report to show non-taxable sales.
- Click Run report.
Sometimes, you may encounter the issue of QuickBooks Sales Tax Liability Report Incorrect. Also, if your total sales on the Sales Tax Liability Report are different from the total income, then follow the below guide to resolve it.
Fixing Discrepancies Between Sales Tax Liability and Total Income Reports
To identify discrepancies, you should compare the details from both reports.
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1. Sales Tax Liability Report:
- Go to the Reports menu.
- Choose Vendors & Payables > Sales Tax Liability.
- Double-click the Total on the Total Sales column.
- Open the Sales Tax Revenue QuickZoom report.
- Click Customize Report.
- Select the report basis (Accrual or Cash).
- Set the same date range as the Profit and Loss report.
- Access the Filters tab.
- Choose Accounts.
- Select All ordinary income accounts.
- Choose Transaction Type and select Multiple Transaction Types, checking all except Invoice and Sale Receipt.
- Click OK twice.
2. Profit and Loss Standard Report:
- Go to the Reports.
- Choose Company & Financial > Profit & Loss Standard.
- Double-click on Total Income.
- Click Customize Report.
- Select the report basis (Accrual or Cash).
- Set the same date range as the Sales Tax Liability report.
- Access the Filters tab.
- Choose Accounts.
- Select All ordinary income accounts.
- Choose Transaction Type. Select Multiple Transaction Types, checking all except Invoice and Sale Receipt.
- Click OK twice.
Conclusion
By following this comprehensive guide, you can create Sales Tax Liability Report in QuickBooks.