How to Change Sales Tax Rate in Quickbooks
Looking to change the sales tax rate in Quickbooks? If you are reading this, I’m assuming the answer is yes. Quickbooks has become the world’s most popular accounting software account, offering a simple and convenient way for small business owners to keep track of their expenses and income. But if you move into a new state, or if you existing state updates its tax code, you may be required to adjust your sales tax. To learn more about changing the sales tax in Quickbooks, keep reading.
Thankfully, there’s a quick and easy way to change the sales tax in Quickbooks. After logging into your Quickbooks account, add the new sales tax item to the item list. This is done by accessing Lists > Item Lists. Keep in mind that the item name must be different from the name that you are currently using. If you happen to use more than one sales tax item, you include all of them here. ALso, you cannot delete the rate of your existing sales tax item sinc you’ll need the item to calculate your sales tax return — and that’s okay. Just add the new sales tax as an item list and proceed to the next step.
The next step is to change the sales tax preferences so it uses the new item. To perform this operation, access Edit > Preferences > Sales Tax > Company Preferences. Whenever you create an invoice, sales receipt or credit memo, this sales tax item will be used instead of the old sales tax. You can even set your sales tax item before the tax is actually changed. So if you are expecting your state to change its sales tax rate, it’s a good idea to go ahead and create the sales tax item in your Quickbooks account.
The last step is to make your old sales tax item inactive. This is done by accessing the item list and double-clicking on the old sales tax item, at which point you can choose to make it inactive. You should perform this step on the date on which the new sales tax takes effect.
Did this tutorial work for you? Let us know in the comments section below!