Taxes
Many people have mixed feelings about taxes, but they are a necessary part of running your business. To ensure the best functionality of the QuickBooks and Mydoma Studio integration, it's important to make sure that your tax settings in QuickBooks match those in Mydoma Studio.
If you don't need taxes added onto the products or services, you can easily remove them from your Mydoma Invoice by selecting the X in the tax rate line.
To begin, let's compare the taxes set up in QuickBooks with those in Mydoma Studio. If there are any differences, we will make adjustments in Mydoma Studio to align with QuickBooks.
1. Here are the steps to review your QuickBooks tax settings:
a. Log in to your QuickBooks online account and click on 'Taxes' on the left-hand side.
b. On the right-hand side, click "Sales Tax Settings."
c. On the right-hand side, click on 'Add/Edit Tax Rates and Agencies.'
2. From within your Mydoma Studio account click on your logomark/studio name at the top left > Studio settings > Accounting
Then Click on the tax rate you are needing to edit, on the right hand side.
3. Compare the taxes listed in QuickBooks with those in Mydoma Studio. If there are any differences, you can edit or create taxes in Mydoma Studio to match the ones in QuickBooks. To edit existing taxes in Mydoma Studio, simply click on the tax.
Please ensure that the taxes in both platforms are aligned for accurate financial records and a seamless integration between QuickBooks and Mydoma Studio."
***Note: It's important to note that you should not edit a tax rate's percentage(s) once you have added that tax to any items in your studio. Modifying the percentage will result in a change across your entire studio. If you need to apply a new tax rate, it's recommended that you archive the old tax and create a completely new tax rate instead.***
Create a New Tax
If you are missing any taxes from QuickBooks, don't worry! You can easily create a new tax in Mydoma Studio by following these steps:
To add a new tax rate, click + Add Tax in the upper right-hand corner.
***Note: Some jurisdictions require remittance of more than one individual tax. The reporting and remittance requirements for taxes can vary depending on the jurisdiction. Checking local tax laws and accounting with qualified advisors is advised to determine the best tax setup for compliance purposes.***
Next, enter the Name, Description, and your tax rate(s).
If you need to calculate and report your taxes as a combined rate you are finished and can scroll down to click Done.
If you need to calculate and report your taxes separately, you will want to toggle on the Calculate as Split Tax so that the rates will calculate individually before scrolling down and clicking Done.
Now when you export paid invoices from Mydoma Studio your taxes will be in sync!
If using the Automatic Sales Tax collection (US only) there are a few things you need to be aware of:
With Automatic Sales Tax Collection, the amount of sales tax on an invoice is determined by your company address in QuickBooks. Therefore if your client is subject to a different tax rate than your local area, QuickBooks will automatically override the tax amount collected when the invoice is exported from Mydoma Studio to QuickBooks.
For example: You have to typically charge 4.38% sales tax, but your client lives outside of Manhattan and you’re now subject to may the full state tax at 8%. In Mydoma Studio you set up the invoice for 8% and your client pays the full amount. When that invoice is exported to QuickBooks there is a possibility it will give you an error or alter the tax rate and total amount paid based on the billing address of your business.
We recommend in order to avoid the possibility of inaccurate tax collection you should turn off the automatic Sales Collection and use and the Standard Tax Method.
However, if you prefer to use the automatic sales tax collection please be aware you may see tax discrepancies and that is outside of Mydoma Studios control and you may need to adjust in QuickBooks.
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If you need any additional support, click the question mark in the upper right-hand corner to chat with a member of our team.
Happy Designing!