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 — that you will immediately need to make inactive.
Try activating sales tax in the demo above ☝️
- In the QuickBooks app , go to Sales tax. Take me there!
- Click Use Automatic Sales Tax, then enter your business address.
- Under Do you need to collect sales tax outside of state?, select No.
- Under Filing frequency, select Monthly.
- 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 automatically generate liability accounts for each active tax rate and tax agency. It’s important to make sure there are no external tax rates or tax agencies still active on your QuickBooks account.
Note: Do not remove the Anrok tax rate that was created during the integration process.
Try making a tax agency inactive in the demo above ☝️
- In the QuickBooks app , go to Sales Tax Settings. Take me there!
- Locate the existing tax agency or custom rate, then under the ACTION column, click Edit.
- 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 marked as taxable for Anrok to provide its tax calculations on your invoices.
Note: 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 ☝️
- In the QuickBooks app , go to Product and services. Take me there!
- Locate the item, then under the ACTION column, click Edit.
- Scroll down to Sales tax, then click Edit sales tax.
- Under Other options, select Taxable.
- 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 ☝️
- In the QuickBooks app , go to Chart of accounts. Take me there!
- In the search bar , enter
Out of Scope Agency Payable.
- Click the drop-down button next to the account, then click Edit.
- Under Account name, rename the account with your desired account name.
- When you are finished, click Save.
Create a custom field for customer VAT IDs
Adding a VAT ID 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 ☝️
- In the QuickBooks app , go to Custom form styles. Take me there!
- Select the template, then click Edit.
- Go to the Content tab.
- On the right, click the pencil button in the top section of the template.
- On the left, select + Custom field, click the checkbox next to Custom name.
- In the Custom name field, enter
- Click Done.
Now that you’ve set up your QuickBooks account to work smoothly with Anrok, let's take a look at how to make sure Anrok's sales tax is added to your invoices. Check out our best practices for invoicing in QuickBooks.