See all your taxable and non-taxable sales in one place for easy tax liability calculations!
As we continue to roll out reporting improvements, we’re excited to tell you about the latest update: Sales by Tax Group. This new report takes all of your sales and separates them into net taxable and net non-taxable sales at the top, along with your estimated sales tax due based on how your tax rates are configured. Below that, you can see the percentage, taxable amount, and tax amount for each of your tax groups.
Many of you have asked for a report like this and we think that it will be a major time-saver any time you need to calculate your tax liability (usually quarterly or yearly) or if you just want to see a quick glance of which taxes are contributing most to your liability at any time.
Now before you dig into this exciting new tax reporting, there are two key things we want to make sure you are aware of:
- While ShopKeep lists your estimated sales tax due on this report, we want to stress that number is an estimate based on how your tax rates are configured. For any official filings, we always recommend that you calculate your own taxes based on your taxable and non-taxable revenues. Taxes change frequently across different cities and states, so we think it’s best for you to check current rates before submitting anything.
- ShopKeep calculates taxes at the item level. This means that the relevant tax rate is applied to the subtotal of each item in the transaction individually and then rounded to the nearest penny. This is opposed to calculating tax at the transaction level (which we did before version 2.10.0 of the Register app), where the subtotal of each item in each tax group is added together before the tax rate is applied and then rounded to the nearest penny. In extensive research on the subject, we’ve found that calculating taxes at the item level produces the most accurate tax results for the highest number of customers. Learn more here.