Many small businesses have to charge sales taxes for goods and services sold. When the tax settings are properly set up, Kashoo will track the sales taxes for you when you sell goods and services as well as tracking sales taxes you have paid on expenses.
To set up a tax go to Settings
Select the Taxes page.
The first time you go to Sales Tax you will be on the Create New Tax screen. Enter some basic details such as the tax Name, Abbreviation and Rate under the Basic Settings.
Update the Description and make sure the Registered box is ticked if you charge this tax on Income. Then click on Add to create the new tax. You do not need to select the accounts that are connected Kashoo will set these up automatically for you once you have used the tax on a sale or a purchase.
The Sales Tax will now be available for you to use when entering your income and expenses.
What does the “-Sales Tax” function do?
This function is mostly used when entering expenses. For example, if you go out for a meal with a prospect that cost you $100 including tax, you would put the price as $100 and the tax as -5% Sales Tax. This just means that the subtotal of your meal actually came out to $95.24, but after adding 5% Sales Tax ($4.76), your meal had a total of $100.
This process simply allows Kashoo to track the amount of sales taxes you are paying on expenses without you having to go through the process of doing that calculation yourself.
If you were to have a meal that had a subtotal of $100 and you chose the 5% sales tax option, the meal would have a total of $105.00 after tax.
Reports on taxes payable and receivable can be found in the Sales Taxes page.
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