Cloud Cart allows you to map tax codes based on the city, county, or state to QuickBooks. This allows for easy management and reporting of sales tax payable in QuickBooks.
Do I need to map QuickBooks tax codes?
If you live in a state like Massachusetts with a single rate, then we recommend using the codes. This makes both the accounting and reporting of sales tax easy within QuickBooks. However, if you live in a state where the tax changes depending on your rooftop location, then we recommend a third-party service to manage your tax.
Alternatively, for states where the tax changes depending on your city, we recommend adding tax as a line item because QuickBooks isn't made to handle taxes by the city, you may insert sales tax as a line item.
How do I map U.S. tax codes?
Tax codes must first exist in QuickBooks. Next, tax codes can be mapped to the appropriate state. However, if you need to match tax codes by city and/or county as well, please read these instructions.
How do I create a tax code in QuickBooks Online?
If not already set up, we must first set up tax codes in QuickBooks, which map a percentage and a U.S. state. Here are the steps:
- Login to QuickBooks Online.
- On the left, click sales tax.
- Next, on the right-hand side, click add/edit tax rates and agencies.
- Then, click new:
Finally, complete the on-screen instructions.
How do I map tax codes in Cloud Cart Connector?
Now that we have some tax codes, for U.S. customers, let's map existing QuickBooks Online sales tax codes:
- Login Cloud Cart Connector.
- At the My Connections page, select your connection under Manage Connections, then click Manage on the right.
- On the the configure page, scroll down and click Sales Tax to expand the settings.
- Next, click +Add New Code:
Select the appropriate code from the drop-down and fill the remaining fields:
When finished, click Update - congratulations, the code is now mapped. This is what it will look like:
Next, map any additional required codes via the instructions above.
When complete, click Save Settings and Sync Now on the bottom right.
Third-party Sales Tax Management Services
If you're using a third-party service like Avalara or you have QuickBooks Online Automated Sales Tax enabled, you do not need to map sales tax codes. For third-party sales tax management solutions, enable tax mapping as a line item.
If QuickBooks Online Automated Sales Tax is enabled, no action is required - Cloud Cart Connector will detect this automatically.