Submitting sales tax might seem overwhelming for small business proprietors, however, FreshBooks can make it manageable. This article will walk you through how to efficiently file sales tax by utilizing FreshBooks.
Step 1: Set Up Sales Tax in FreshBooks
The first step is to set up sales tax in FreshBooks. To do this, go to the “Settings” tab and select “Taxes”. From there, you can add new tax rates or edit existing ones. Make sure to enter the correct tax rate for your location.
Step 2: Add Sales Tax to Invoices
Once you have set up sales tax in FreshBooks, you can start adding it to your invoices. When creating an invoice, select the “Taxes” tab and choose the appropriate tax rate from the drop-down menu. You can also add a description of the tax if necessary.
Step 3: File Sales Tax Returns
After you have collected sales tax on your invoices, it’s time to file your sales tax returns. FreshBooks makes this process easy by generating a report that shows all the sales tax you have collected. You can then use this report to fill out your sales tax return form.
Step 4: Remit Sales Tax Payments
Once you have filed your sales tax returns, it’s time to remit the payments. FreshBooks allows you to set up automatic payment reminders so that you never miss a deadline. You can also use the “Payments” tab to track your sales tax payments and ensure they are up-to-date.
Conclusion
Filing sales tax doesn’t have to be a stressful experience for small business owners. With FreshBooks, you can easily set up sales tax, add it to your invoices, file returns, and remit payments. By following these steps, you can ensure that you are compliant with all sales tax regulations and avoid any penalties or fines.