Configure your QuickBooks account


Once you’ve finished the Anrok & QuickBooks integration process, there are still a few additional steps you’ll need to complete within QuickBooks before you can start creating and editing invoices. This will ensure that your QuickBooks account has been properly configured for tax calculation.



Activate sales tax calculation

To begin showing tax on your QuickBooks invoices, you will first need to activate sales tax calculation on your QuickBooks account (if you have not done so already) During this process, QuickBooks will require you to activate a tax agency, which you will immediately need to make inactive.

Try activating sales tax in the demo above ☝️

  1. In the QuickBooks app CleanShot 2023-07-19 at 15.00.11@2x.png, go to Sales tax. Take me there!
  2. Click Use Automatic Sales Tax, then enter your business address.
  3. Under Do you need to collect sales tax outside of state?, select No.
  4. Under Filing frequency, select Monthly.
  5. Click Save.



Make all existing tax rates and tax agencies inactive

External tax rates and tax agencies left active on your QuickBooks account will block Anrok’s tax calculation from appearing on your invoices. It will also cause QuickBooks to generate liability accounts automatically for each active tax rate and agency. It’s important to ensure no external tax rates or tax agencies are still active on your QuickBooks account. 

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Do not remove the Anrok tax rate that was created during the integration process.

Try making a tax agency inactive in the demo above ☝️

  1. In the QuickBooks app CleanShot 2023-07-19 at 15.00.11@2x.png, go to Sales Tax Settings. Take me there!
  2. Locate the existing tax agency or custom rate, then under the ACTION column, click Edit.
  3. Select Make inactive, then click Make inactive to confirm.



Make all products and services taxable

Since Anrok is a tax integration, QuickBooks only allows Anrok to digest invoices with products and services marked as taxable. All your products and services in QuickBooks must be taxable for Anrok to provide tax calculations on your invoices.

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This process is done by Anrok automatically during the integration process. You will only need to do this manually if an error occurs during the connection process.

Try making a product taxable in the demo above ☝️

  1. In the QuickBooks app CleanShot 2023-07-19 at 15.00.11@2x.png, go to Product and services. Take me there!
  2. Locate the item, then under the ACTION column, click Edit.
  3. Scroll down to Sales tax, then click Edit sales tax
  4. Under Other options, select Taxable.
  5. Click Done, then select Save and close.



Rename the “Out of Scope Agency Payable” liability account (Optional)

During the Anrok & QuickBooks integration process, QuickBooks will automatically create a liability account in your Balance Sheet called “Out of Scope Agency Payable”. All sales tax calculated and collected via Anrok will flow directly into this account. For added visibility, we recommend renaming this account to something easier to remember (e.g. Sales Tax Payable). 

Try renaming the "Out of Scope Agency Payable" liability account in the demo above ☝️

  1. In the QuickBooks app CleanShot 2023-07-19 at 15.00.11@2x.png, go to Chart of accounts. Take me there!
  2. In the search bar quickbooks_search_bar.png, enter Out of Scope Agency Payable.
  3. Click the Drop-down button  quickbooks_dropdown.png  next to the account, then click Edit.
  4. Under Account name, rename the account with your desired account name.
  5. When you are finished, click Save.



Create a custom field for customer VAT IDs

Also known as a VAT registration number (VRN), this is the unique number that identifies a taxable business that is registered for VAT.CleanShot 2023-08-17 at 11.41.50@2x.pngMost businesses (and other persons carrying out an economic activity) are required to have a VAT number.
to your customer's invoices will be essential for tracking international economic nexus exposure. 
To display VAT IDs on your invoices, you will need to create a "customer_tax_id" custom field. Once this custom field has been created, Anrok can use your customer's VAT ID to verify an invoice's taxability in a given country/region.

Try creating a custom field for customer VAT IDs in the demo above ☝️

  1. In the QuickBooks app CleanShot 2023-07-19 at 15.00.11@2x.png, go to Custom form styles. Take me there!
  2. Select the template, then click Edit.
  3. Go to the Content tab.
  4. On the right, click the Pencil button  quickbooks_pencil_icon.png  in the top section of the template.
  5. On the left, select + Custom field, click the checkbox quickbooks_filled_checkbox.png next to Custom name.
  6. In the Custom name field, enter customer_tax_id.
  7. Click Done


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Now that you’ve set up your QuickBooks account to work smoothly with Anrok, let's look at how to ensure Anrok's sales tax is added to your invoices. Check out our best practices for invoicing in QuickBooks.

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