Finance Pro - How to set up and manage sales tax.
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.
To set up sales tax records at the firm level, go to 'Sales Tax' in the left sidebar and click Add Sales Tax.
Enter the tax name and rate
Optionally set a start and end date if the tax applies only for a specific time frame.
Select the vendor from the drop down. Only vendors marked as sales tax agencies will appear here.
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.
Click Save.
The new sales tax record will 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.
Export your current sales tax list if needed.
You can also choose to apply Sales Tax to an individual matter by opening that specific matter record.
Select 'Matters' from the left hand side of the screen
Navigate to the Settings tab.
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'. The 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.