Add Tax Categories

Adding tax categories allows businesses to create and manage customized tax categories tailored to their operational needs. This feature provides flexibility in how taxes are calculated and displayed, ensuring compliance with regional and industry-specific tax regulations. You are able to define unique tax categories with options for rounding methods, calculation styles, and visual identification, making it easier to manage complex tax structures seamlessly.

Prerequisites: Account owners and those with administrator access.

Instructions

1. From the main Dashboard, click the Administration tab.
   
   
   
   
   
   
2. You will enter the Administration Dashboard.
   
   
   
   
   
   
3. Click on Financial Settings.
   
   
   
   
   
   
4. Click Tax Categories from the expanded Financial Settings tab to enter the Manage Tax Categories page.
   
   
   
   
   
   
5. Click the blue Add Tax Category button to enter the New Tax Category page.
   
   
   
   
   
   
6. Fill in all fields (All fields are required):
   
   

   Tax Category Name: This is where you enter the name of the tax category (e.g., "Sales Tax" or "VAT"). This helps differentiate between multiple tax categories for specific uses.
   
   

   Tax Category Color: Choose a color to visually represent the tax category. This is useful for quick identification in the system, especially when managing multiple categories.
   
   

   Rounding Method: This dropdown allows users to select how tax amounts are rounded. Options include:

   ·    Round Up: Rounds the tax amount up to the nearest unit.

   ·    Round Nearest: Rounds the tax amount to the nearest unit (up or down based on standard rounding rules).

   ·    Round Down: Rounds the tax amount down to the nearest unit.
   This ensures consistency in calculations and aligns with business or legal rounding policies.
   
   

   Tax Calculation Method: Choose how taxes are applied to transactions. The options are:

   ·    Per Invoice: The tax is calculated based on the total amount of the invoice.

   ·    Per Item: The tax is calculated individually for each item listed on the invoice.
   This flexibility allows businesses to adapt to regional or industry-specific tax regulations.

    

   
   
   
7. Once complete, click Save.
   
   
   
   
8. You should then be taken back to the Manage Tax Categories page where you will now see your added tax category.