Configure your QuickBooks account

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.

Try activating sales tax in the demo above ☝️

1. In the QuickBooks app , go to Sales tax. Take me there!
2. Click Use Automatic Sales Tax, then enter your business address. Automatic Sales Tax is only available for US QuickBooks accounts. 
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 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.

Try making a product taxable in the demo above ☝️

1. In the QuickBooks app , 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 , go to Chart of accounts. Take me there!
2. In the search bar , enter Out of Scope Agency Payable.
3. Click the Drop-down button    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

Adding a VAT IDVAT ID
Also known as a VAT or a VAT Registration Number (VRN), this is the unique number that identifies a taxable business that is registered for VAT.Most businesses (and other persons carrying out an economic activity) are required to have a VAT, VRN, or Customer Tax ID number. to your customer's invoices will be essential for tracking international economic nexus exposure. To display a VAT ID on your invoices, you will need to create a "customer_tax_id" custom field on the QuickBooks Customer. 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.

1. In the QuickBooks app , go to Settings ⚙ and select Custom fields. Take me there!
2. Click Add field.
3. In the Name field, enter customer_tax_id or customer_tax_id_2.
4. Check the box for All Sales forms.
5. Ensure Print on form is selected.
6. Click Save. 
7. Note: QuickBooks requires that this custom field be one of the first three created on your QuickBooks account including inactive custom fields. If you already have created three previous custom fields on your QuickBooks account, you will have to repurpose one of your existing custom fields for customer_tax_id or customer_tax_id_2. This QuickBooks documentation provides more information about this restriction.