Sushi Coma Inc. is required to track sales of items at both locations for sales tax purposes. A sales tax is a consumption tax imposed by the government on the sale of goods and services; it is collected at the point of sale by the retailer $($Sushi Coma Inc. in our example and passed on to the government.

In California, where the restaurants are located, there is a statewide tax rate plus city and county sales tax rates. The total is collected per each sale. Daniel and Meredith are

required to file a sales tax report and pay the balance to the state of California.

Here is the good news, QuickBooks Online has sales tax rates built into the software for each area of the country and tracks the information for you. It also enters the information

on forms such as sales Receipts. When this feature Is setup and utilized correctly, it easy

to keep track of what is owed; in addition, it will help Daniel and Meredith remain in compliance with reporting requirements and prevent late fees.

Let's learn more about the efficiencies of the Sales Tax Center and how to utilize this important feature in QuickBooks Online.

$1.$ Setup the Sales Tax Center. Click through the first screen in the wizard and$$complete the setup manually.

$$Start Date $01/01/$Current Year

$$Frequency $-$ Quarterly

$$Use this address: $7535$ Torrey Santa Fe Rd$.$

$2.$ Setup custom sales tax rates:

$$The Tax Agency should already be; California Department of Tax and Fee Administration

$$San Diego $=7\mathrm{.}25\%$

$$Explore the Sales Tax Center.

$$Explore the Sales Tax Center Shortcuts.

$$Locate and review the following Sales Tax reports:$$Hint$!$ Some are in the Sales Tax Center, and some are in the Reports Center.

$$Tax Liability Report

$$Taxable Customer Report

$$Taxable Sales Detail

$$Taxable Sales Summary

$6.$ Locate the Chart of Accounts and add the account number $22100$ to the $($California Department of Tax and Fee Administration$)$ current liability account for sales tax.