Configure your QuickBooks account

Introduction

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.

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 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

Adding a VAT IDVAT ID
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 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 CleanShot 2023-07-19 at 15.00.11@2x.png, 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. Here is the documentation on the QuickBooks side that discusses this restriction. 

 

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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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