With Hurdlr's invoicing feature, you can easily collect sales tax directly through your invoices and have records of the sales tax you’ve collected. To add sales tax to an invoice:
1. Add the line item you are looking to collect sales tax for (see step 2 here)
2. Click the “Add Tax” button
3. Enter your desired tax rate
4. Click “Save” to save your changes
Your sales tax will be calculated automatically for that item based on the percentage you entered, which you can see listed in the invoice details:
NOTE: Since some line items may not be subject to sales tax or may be subject to different sales tax rates, Hurdlr lets you customize the sales tax per line item.
Once you send the invoice, the credit to Sales Tax Payable will automatically be recorded in the General Ledger and reflected in the Chart of Accounts. This allows you to easily track your Sales Tax Payable balance at any time.
When you make sales tax payments, you can tag the expense transactions to the “Sales Tax Payable” category, which will update the balance in your Chart of Accounts.