Sales tax is vital for every merchant using dealership management software. It is a process that is unique and continually changing. For EverLogic, sometimes it is down to our customer level. There is no room for error. Every transaction must be accurate.
Here's a basic breakdown of how sales tax works with your EverLogic and QuickBooks integration.
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Q: How will sales tax be calculated and reported with my EverLogic and QuickBooks integration?
You will primarily rely on EverLogic to calculate and provide instant reporting on all sales tax items: State, local, city, county, RTD, etc.
EverLogic delivers various items to QuickBooks. Items can include unit inventory types, payment types, and sales tax types. For repair orders and invoices, it totals each type of sales tax. It delivers each with a dollar amount to QuickBooks via an invoice.
You can access your EverLogic-based sales tax account via your QuickBooks Chart of Accounts. It will be named similarly to Payable Accrued Sales Tax or Accrued Sales Tax Payable.
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Q: Why can't I pay my sales tax like I did in QuickBooks?
Due to QuickBooks restrictions, EverLogic cannot merge or combine with the QuickBooks Sales Tax Account. There are a few reasons for this.
Since EverLogic completes the calculation in its system, it produces a dollar amount rather than a rate. One reason is that EverLogic has various customers, some of whom do not use QuickBooks. To provide usable sales tax data quickly and easily to both types of customers, EverLogic provides the dollar amount format.
If you relied on QuickBooks to manage the sales tax process, it would require a repetitive back-and-forth data delivery between EverLogic and QuickBooks. Not only would the system be considerably slower.
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Conclusion
When you use dealership management software, it is imperative that you consider how it handles sales tax. And once you move forward with a DMS, you should be intimately familiar with how taxes are reported to your accounting software. Otherwise, you could face an audit.
With EverLogic, we help put in all your necessary taxes on the sales, parts, and service sides to ensure accuracy. Once that is done, we will help map your QuickBooks to protect you from a possible audit. And if there is an issue you see, our customer support is here to help figure out the problem and rectify it quickly.
If you would like to learn more about EverLogic's features, click the button below to watch our free demo.
