QuickBooks has started to add a feature to their QuickBooks Online (US) accounts called Automated Sales Tax. This feature removes the need to manually add tax rates into QuickBooks and suggests correct tax rates based on your client’s location.
QuickBooks has not allowed the ability to edit these automated tax rates. In order for your Jobber account and QuickBooks Online account to sync properly, you will need to set up the tax rate names and tax rates in Jobber to match QuickBooks.
For Jobber to recognize the tax rate from QuickBooks, you must attempt to sync an invoice. We recommend that you sync early and often so that we can inform you of the tax rates and groups QuickBooks has created in order to prevent sync errors later on.
Note: When syncing an invoice, we don't sync the shipping address to QuickBooks (we just sync the client's billing address). This means that the automated sales tax won't recognize the client's shipping address and will use the billing address instead. If your client's shipping address is in an area with a different tax rate for the county or address, you will want to have that information entered into QuickBooks first.
In Jobber, we’ve got you covered and will walk you through how to resolve these tax sync issues if you do run into them.
When syncing you may run into this or a similar error:
We will then present you the following steps:
This shows what QuickBooks has set up as automated tax rates and is asking you change the Jobber rates in order to match and sync properly. In this case, we need to add a few tax rates and a tax group. Click Edit Tax Settings:
From your Company Settings page you will make your tax rate adjustments. You have the option of creating a New Tax Rate or just adjusting old rates. In our case, we didn’t have the tax rate in the first place so we will create 2 new rates. It’s very important that you copy and paste the EXACT names and rates that QuickBooks suggests so that you can have a successful sync.
QuickBooks also requires that these rates be grouped, you'll first need to Update Settings to save the tax rates, and then let’s click Create Tax Group.
After creating the group, make sure you add all of the tax rates that you just created or edited into that group.
Repeat this for all the rates and groups that are listed.
After a quick save you will notice that your error messages on this page are resolved!
We also suggest that you update your default tax rates to the appropriate rate to save you some time later
Let’s head back to the QuickBooks Sync page to complete our second step.
Here is a list of all impacted invoices, we will need to fix each invoice individually to match the QuickBooks tax rate. ClickEdit Invoice.
Once on the invoice, we will remind you the suggested tax rate again and you can now select the correct rate.
After selecting the right rate we are now matched!
Go ahead and save the invoice. All warning messages will now be removed.
At this point you may or may not want to let your client know of any adjustments that were made, especially in case of you re-sending your invoices.
Now you are done!
- These steps will need to be repeated for every new client that spans a new county or state that has differing tax laws.
- As some invoices will require an adjustment, we do recommend that you sync early and often in order to avoid under or overpayment by your clients.
- Based on how QuickBooks calculates sales tax, a few customers might run into rounding errors.