Sales Tax Report
TCG
Member Posts: 4
I only report Sales Tax collected to my state AFTER my customer has paid the invoice. The only sales tax report that I see in Wave shows all sales tax on invoices for the selected date range, regardless if the customer has paid that invoice, or not.
Is there a way to find out how much sales tax has actually been paid by customers for a certain date range?
0
Comments
Hi @TCG.
This is because Wave uses accrual accounting as a baseline. This means that income is recorded at the creation of the invoice, as opposed to cash-based accounting, which waits until payment.
Luckily, you can pull up a Sales Tax report for your cash-based accounting needs simply by changing the report type to "Cash and cash equivalent" on the Sales Tax report itself.
Hi Alexia,
I tried changing the report to "Cash and cash equivalent" before I created this post, but then it shows $0.00 in sales tax even though I have a couple of completed and paid transactions with sales tax.
I finally figured out why. When I accepted payments from customers, it was only giving me 2 accounts to add those payments to by default, Cash on Hand and Owner Investment / Drawings. I didn't want it to be under Cash on Hand, so I was using Owner Investment / Drawings, which for whatever reason doesn't show on the Sales Tax report when selecting "Cash and cash equivalent".
I have since made a new account called "Payments from Customers" under the "Cash and Bank" section of the charts and accounts, and now it works as intended.