The taxes report shows a breakdown of goods & services tax (VAT, GST or Sales Tax depending on your region). This article will go through the best practices when using this feature.
AccountsPrep integrated companies.
The taxes report is based on entries made via Sales batches and Expense batches.
Selecting the Date Range
Select the From/To date range for the period you require.
By using the Preview or Save buttons, you can decide whether to see these settings as a once-off instance, or save it for the next time you open the report.
This is useful if you are focusing on one particular reporting period (bi-monthly/quarterly etc.) at the time.
Detailed or not?
In the display settings, you can choose to show detailed report or not.
This simply allows to show either the transaction lines, or just a high-level balance per tax rate.
Choosing to use the Taxes Feature
How or whether you use the taxes report all depends on the client and how you decide to write up their accounts.
If you currently compile their VAT returns in Excel, we would suggest uploading this info via a sales/expense batch at each period during the year (showing net/tax/gross per line).
If your client compiles it themselves, then consider uploading this data via a sales/expense batch at year-end to have consistent records in the annual accounts compilation.
Either way, you will have a better view and breakdown of accurate sales and expense records within the AccountsPrep general ledger compared to Excel, and you can review and edit on the go very easily!