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Why is there four Income Accounts related to Sales Tax?

Why is there four Income Accounts related to Sales Tax?

KIS BOOKS automates Sales Tax. To help enable this automation KIS BOOKS separates your sales within your “Home State” from your “Inter State” Sales at an account level. Reportable “Non-Taxable Sales” are also separated at an account level. All sales events required for sales tax reporting must be recorded in one of these four accounts. These four accounts are used exclusively for sales tax reporting in conjunction with Accounts Receivable transactions.

All users can use any of these first four accounts to record sales with or without sales tax. The first two accounts give a “No Tax” sales tax method option. The third and fourth sales accounts do not apply sales tax (but are included in sales tax reporting). These top four sales accounts allow users to have an over-sight tool in managing their taxable and non-taxable sales.

Important: –

– Users must make sure their books are up to date including Accounts Receivable for accurate sales tax reporting

– KIS BOOKS will report all cash transactions in the financial period they occur for cash sales tax reporting, even if the invoice was created in a prior year

– Users should be consistent in their cash or accrual method of sales tax reporting on a State by State basis guided by their legal requirements.

– Changing the reporting method may cause an under or overpayment in sales tax

– Users are advised to obtain professional advice to ensure they fully always comply with all applicable State and Federal laws when using this product.

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