This video will walk through how to set up and manage Sales Taxes
Video Transcript:
In this video, we'll walk through how to set up and manage sales tax in the system, from enabling the feature to adding sales tax records to applying them directly to matters.
Sales taxes are optional charges that can be automatically added to pre bills and invoices when required by your local tax regulations.
If your firm collects sales tax, start by enabling it in Firm Settings.
Click on your name in the top right corner of the screen and select Firm Settings.
Navigate to the Configurations tab.
Select Accounting from the menu on the left and toggle on Enable Sales Tax.
Once enabled, you can set up sales tax records at the firm level.
To do this, go to Sales Tax in the left sidebar and click Add Sales Tax.
Enter the tax name and rate and optionally set a start and end date if the tax applies only for a specific time frame.
Next, select the vendor from the drop down.
Only vendors marked as sales tax agencies will appear here.
Then choose the appropriate liability account and decide whether the sales tax should be automatically applied to all clients and matters in the system by default.
Mark the tax as active if it should be available for use and click Save.
Your new sales tax record will now appear in the grid.
If you need to make changes later, click the pencil icon to edit the record.
If you already have a list of sales tax rates you'd like to bring into the system, you can use the Import option.
Click Import Sales tax from CSV.
Ensure your file follows the required template or download the template directly and then upload your file using Choose File.
Click Import to complete the process.
You can also export your current sales tax list if needed.
If you chose not to apply the sales tax by default to all clients and matters, you can apply it to an individual matter by opening that specific matter record.
Navigate to the Settings tab and select Sales Tax from the left menu.
Click Add Sales Tax.
Choose the applicable tax or taxes from your previously created list and then click Add Selected Sales tax will now be applied automatically to pre bills and invoices.
For that matter, Sales tax can also be applied to an individual client using the same steps.
When added at the client level, it will automatically apply to all matters under that client.
However, if sales tax is assigned at both the client and matter levels, the matter level tax takes precedence.
In those cases, only the matter sales tax will be applied.
And that concludes this video on adding and applying sales tax.
With your tax record set up and assigned to the appropriate clients and matters, the system will automatically calculate and include them on prebills and invoices.