How do I calculate my taxes for a given time period?

Modified on Fri, 20 Mar 2020 at 05:05 PM

Navigate to Reports > Sales Report  to view taxes collected for any specified time period.

Set the start and the end date of the period you wish to view and then click 'Show Report'.

The number is shown next to 'Taxes' is the total taxes collected during this period. This is actual, summed from the tax calculated on each order at the time it was placed. If you are attempting to manually confirm this number, there are a few factors you must bear in mind.

First, you need to get the non-taxable delivery charges for this period, in order to subtract them from the total 'Delivery Charges' for the period. This will get you a more accurate total taxable amount. Click the checkbox next to 'Show Tax Exempt Only' and then click 'Show Report' again.

Now that we have this number. To calculate estimated taxes owed, start with Taxable Products. Add to this Unnapplied Credit, Wire Service Fees, Delivery Charges, and Late Fees. Subtract from this number Loyalty Amount, Gift Card, Discounts, and Non-Tax Delivery Charges, which we got from the second report we ran.

Important Note: The number that you calculate will not equal the number displayed next to 'Taxes'. This has to do with how rounding is done when the tax is calculated per order. Each order, there are fractions of pennies that are rounded up or down to get an amount to be collected for that order in tax. This is done every order, and over time can add up to dollars of difference between the number display and the number you have calculated. Given we are not doing the rounding per order but at the very end of manually checking the numbers, there will be a discrepancy in the numbers ever so slightly. This is to be expected as it happens for all businesses when accounting in their books.

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