Sales tax reporting and payments are an important aspect of every business, whether it's online or offline. As sales increase, it becomes more difficult to keep track of sales tax and make a report of it.Business owners should track their tax data carefully to avoid situations where they are late with tax reporting or overpay or underpay sales tax.In this case, WooCommerce store owners can use the WooCommerce reports area to retrieve a summary of their sales tax. Although it may be suitable for small businesses, as your company increases in size, you'll need more comprehensive tax management software, such as a WooCommerce tax plugin or an integrated accounting system.In this article we will review both WooCommerce tax reporting and tax management features of Finpose, accounting plugin for WooCommerce.
Tax reporting options are available in the reports area for WooCommerce stores.You must go to the WooCommerce > Reports page on your WordPress admin dashboard to see WooCommerce Sales Tax Reports. You can open the 'Taxes by Code' page by clicking the 'Taxes' option on the reports page. Your sales tax will be displayed on this page as grouped data based on the tax code for the sale. If your store has multiple tax rates for different types of products or different regions, each tax amount will be added together under its own tax rate.The default timeframe in this view is 'Last month.' As pre-defined timeframes, you can select 'This Month' or 'Year.'
You can also use date pickers to choose a custom timeframe.If you go to the 'Taxes by Date' sub-page, you may see your sales tax data organized by the date of the sale. The same timeframe choices are also available in the 'Taxes by Date' sub-page.
You must export sales tax data from WooCommerce in order to provide it to your accountant. WooCommerce tax report, on the other hand, is a summary of sales tax data. To be explicit, it just shows the number of orders and tax totals for the specified time period.If the tax data you've provided isn't enough for your accountant, you might want to pursue a more advanced tax reporting option. In the last half of this post, we'll go over Finpose's tax management features.
Finpose adds elements like tax receivables, taxes paid, and tax balance to WooCommerce tax reporting, in addition to regular sales tax reporting for WooCommerce orders.
: In the taxes due column, all tax payables from your sales are automatically sorted by month.
: This is the amount of tax receivable from your spendings. It's a tax that, according on your country's tax legislation, you can receive directly or have deducted from your tax liability.
: You can also use the '
Add tax paid
' button in the top right corner to add all of your tax payments. This will then be deducted from the tax balance for the month in which it was paid.
: The formula below is used to compute your monthly tax balance.
Tax Balance = Taxes Payable - (Taxes receivable + Taxes paid)Your tax balance is crucial to keep track of since it indicates whether you owe any taxes that need to be paid.
Positive numbers in green hue in the tax balance column signify the amount you'll have to pay.
Negative sums are shown in red, indicating that you have a positive tax receivable.All tax data is organized by month and shown for each year, allowing
users to quickly track and compare changes over time without having to
switch between timeframes.
You can also see each order adding up sales tax for the specified month by clicking the tax amount for each tax payable (sales tax).The reports can be exported in CSV formats. The CSV format is very useful when you want to use the data in spreadsheet software like Excel, you can easily convert into an XLS file or import in online sheet editors.
Tax management features of Finpose are explained in detail on the Tax Plugin for WooCommerce page. You can review features, try out the demo or download the free version over the plugin page.Featured Image: Photo by Nataliya Vaitkevich from Pexels