11.19.24 - Sales Tax in QuickBooks Online

Join our webinar on mastering sales tax with QuickBooks Online! Tailored for accountants and small business owners, our guest Alicia Katz-Pollock will guide you through setup, management, and reporting. Discover efficient tracking, identify limitations, and learn workarounds to streamline your finances. Gain confidence with practical insights and expert tips.

Access Alicia's Full course on QBO Sales Tax: http://royl.ws/SalesTax?affiliate=2831794

QB Power Hour is a free, biweekly webinar series for accountants, ProAdvisors, CPAs, bookkeepers and QuickBooks consultants presented by Michelle Long, CPA and Dan DeLong who are very passionate about the industry, QuickBooks and apps that integrate with QuickBooks.

Watch or listen to all of the QB Power Hours at https://www.qbpowerhour.com/blog

Register for upcoming webinars at https://www.qbpowerhour.com/

00:00 Introduction to QB Power Hour Webinar
00:56 Welcome and Panel Introduction
01:28 Sales Tax in QuickBooks Online
02:20 Alicia Katz Pollock's Introduction
03:58 Housekeeping and CPE Credits
06:13 Understanding Sales Tax Setup
10:21 Sales Tax Center Overview
23:28 Product and Service Taxability
26:53 Customer Tax Exemptions
29:27 Collecting Sales Tax on Sales Forms
30:44 Understanding Taxability and Location of Sale
31:04 Shipping Information and Overrides
32:27 Automatic Tax Calculation and Overrides
33:15 Sales Tax Before or After Discounts
33:57 Transparency in Tax Calculations
36:03 Sales Tax Center Overview
39:09 Making Sales Tax Payments
43:31 Adjusting Sales Tax Amounts
51:03 Third-Party Sales Tax Solutions
59:49 Upcoming Events and Community Announcements

Episode Transcript

Dan DeLong (00:30):
Good morning everyone.
Welcome to another QB PowerHour.
Michelle is not joining ustoday, unfortunately.
She has a memorial to attend totoday.
So she's not gonna be joining ustoday, but we do have a great
expert panel with us.
We have Alicia Katz, Pollock,and, spot or You're back.

(00:53):
Okay.
didn't know where you went therefor, Matthew joining us on our.
Riveting discussion of sales taxin QuickBooks online.
I know edge of your seat only isnecessary for today.
But go ahead.
I'm going to toss the ball overto Alicia to, introduce herself.

(01:17):
Everybody knows me and Michelleand oh, Hi

Matthew Fulton (01:24):
guys, most everybody here probably knows me
as well.
Matthew, my friends call mespot, founder of parkway
business solutions and QBcommunity live Facebook group
and a non lover of sales tax.
So this is going to be anexciting conversation.
I'm sure.
Put a one in the comments if youlove handling sales tax.
Yeah,

Dan DeLong (01:46):
So Alicia, I forgot to put your bio slide in here.
I know you're going to talk alittle bit about yourself and
I'm going to stop sharing for asecond so people can see you,
but Introduce yourself for thosethat don't know who in the world
you are.

Alicia Katz Pollock (02:00):
All right.
My name is Alicia Katz Pollackand my company is Royal Wise
Solutions at royalwise.
com.
And what I do all day, every dayis QuickBooks setups, cleanups,
troubleshooting, and especiallytraining.
And I have a huge trainingprogram at learn.
royalwise.
com.
I'm the co host of theunofficial QuickBooks.

(02:22):
books, accountants, podcast withHector Garcia.
I've been a top 50 women inaccounting.
I've been a top 10 pro advisor.
And really what my passion isfor some reason, I'm just like
incredibly, I have this geeklove.
Thing with QuickBooks.
And so I tell to tell everybodyhow to use it.

Dan DeLong (02:43):
Yes.
And that's one of the things Ithink as we unpack sales stack
today, it's not as bad as wemight as it might get the wrap.
It's more of just like anythingelse, it's how you set it up and
how you use it.
Yeah.
There's some nuances to it andthose types of things, but as

(03:04):
we'll unpack here that it's notso it's not, terrible.

Alicia Katz Pollock (03:11):
No, it's really not.
It's the sales tax module.
If you use it it's like dead onaccurate, but there's so many
different places where you canbe using it wrong.
And so that's what I'm here toshow you is like all the things
to watch out for.

Dan DeLong (03:27):
Let me go ahead and reshare my slides so we can do a
little housekeeping.
A little bit about the QB powerhour.
It's every other Tuesday at noonEastern.
It's now eligible for CPE creditonly on the first one.
So if you're keeping score athome, this is the second one of
the month.
So unfortunately, our friends atmakers hub are not here to
KELOLAND dot com.
Help us with the CPE credit, butAlicia your your, platform does

(03:53):
give eligible CPE.
So that's so if you don't likewhat you're seeing here today,
go over to Alicia's website andyou'll you can watch the same
thing and get CPE credit for it.
But a little bit about we havethe, some resources, the PDFs of
the slides, recordings andpodcasts always available at

(04:14):
qbpowerhour.
dot com slash resources and wewill share the link for today's
handouts as well in the chat andquestions.
So if you have questions today,you're welcome about sales tax
or things of that naturespecific topics that we're
talking about today, please putthem in the Q and a, because it

(04:35):
will be super helpful for us tofollow up with that.
If we can't answer it live onthe webinar today if you have
general grumblings, like Matthewsaid about, I hate sales tax,
please put them in the chat, sowe'll.
Meant because it, as it getsscrolls by sometimes it's hard
to catch all these things asthey go by.

(04:56):
So if you have a specificquestion, please put in the q
and a general comments.
Put in the, chat or else I'llhide it on you.
And then that no one will beable to chat.
We have a store.
Please check it out if you havethe time.
No CPE for today.
It's only the first web webinarof the month for our friends at

(05:17):
Maker Sub help out with that.
And we've got some that's thelast slide.
So nevermind that, but let me goahead and stop sharing and then
I'll hand it, on over to Aliciato kick us off and bring us up
here with a sales tax inQuickBooks online.

Alicia Katz Pollock (05:35):
Okay, is my title slide up?

Dan DeLong (05:38):
It is.

Alicia Katz Pollock (05:39):
All right, excellent.
What what Dan was teeing me upfor is, this session today is
really just a synopsis of theessentials of my full sales tax
in QuickBooks Online class.
I actually have a two hour classwith CPE.
And so what I'm going to talkabout today is understanding how

(06:00):
the sales tax module workssetting it up, the activities of
collecting it, the sales taxcenter, making payments, and
some of the reports now and Isaw MB in the chat said what
about troubleshooting?
Sales tax is wrong.
That is what I don't have timeto talk about today.
And so the con, the continuationof that conversation would be in

(06:23):
my course.
And I'll give you a link to thatat the at the end.
All right.
That's about me, but we did thatalready.
Dan, go ahead with your firstpoll

Dan DeLong (06:32):
and all right.
I'm still trying to share.
Okay.
Yes.
Do you, so do you assist settingup sales tax for your clients?
So yes, no, or maybe it's justnot even in your, scope of
expertise.
So Alicia what, how did you get,like, how did you dive into

(06:55):
sales tax and enough to want toteach people how to use.

Alicia Katz Pollock (07:00):
The grand irony is that I live in Oregon
and we don't even have salestax.
Yeah,

Dan DeLong (07:04):
I was thinking that too.

Alicia Katz Pollock (07:06):
Yeah, so it's not even an issue for me,
but I live right across theriver from Washington.
And so I have a lot of clientsin Washington and I have a lot
of clients in Oregon who do workin Washington, which gives them
nexus.
And so I had to learn the salestax piece.
The rest of it is just becausethat's my job is to know
everything about QBO.

(07:27):
And so I can't let Thisincredibly important topic
slide.
So I have to dive in on it.

Dan DeLong (07:35):
Yeah, it's definitely something that is a
core function if you sellanything which is typically most
businesses, right Matthew?
Exactly.

Matthew Fulton (07:45):
Yeah, sales tax, one of my favorite ones was
dealing with a used cardealership down here in Ventura.
And that's always a fun itembecause you have to record sales
tax based on where the person'sresidence is in California.
So you've got all thesedifferent districts, you're
having to break everything outwas just always such a major

(08:06):
nightmare and we'd have to haveour own little worksheets to try
to validate it.
So it just pushes you in tofigure it out.
Nowadays, with everything.
We have clients all over theplace.
You just have to know thethings.
It's tough to stay on top of itall.

Alicia Katz Pollock (08:20):
Really true.
And in this poll for the peoplewho are saying no, they don't
assist their clients in gettingset up.
Once you see what we're going todo today, you might want to
actually add this into yourscope of work and then bump up
your rate for doing it.

Dan DeLong (08:35):
Yeah, especially if you're if you're used to.
Just trying to set it up insidea desktop where the entire
burden of knowing all of thethings is, on who is setting it
up.
QuickBooks Online assists insome of that process.

Alicia Katz Pollock (08:53):
Exactly.

Dan DeLong (08:53):
Let me go ahead and end the poll and I'll show you
the results.
Looks like 69 percent do, that.
I had to make sure I didn't justsay do.
Crap, now I did.

Alicia Katz Pollock (09:06):
Yeah, there

Dan DeLong (09:06):
you go.

Alicia Katz Pollock (09:07):
All right, I'm going to go ahead and dive
in.
Now if you've ever had a sessionwith me, you know that I kind of
fire hose you with information.
And so you probably will want togo back and watch the recording.
I am going to try and cram in asmuch as I can into the 50
minutes that we have.
So you do have the handouts.
Dan, you can put the, there itis, there's the handout.

(09:31):
All right.
So let's talk about what isQBO's sales tax center.
Now, if you're coming over fromdesktop, this is one of the
things that's great about it isthat there's a, it's almost
completely automated and indesktop.
You had to put in sometimes asales tax line to calculate your
sales tax manually, and then youhad to update your sales tax

(09:52):
percentages back in the day.
QBO is way more automated, andso you, all you have to do is
set up what state you're withwhat products are taxable and
how, and which clients aretaxable and how, and then QBO
will do all of the math to bringthose three factors together and

(10:13):
do all of your tracking.
So the sales tax is calculatedin every single transaction, and
the thing that's nice about thisis that the rates are updated
automatically when there is arate change up or down.
You don't have to go in and fixyour QuickBooks.
It will automatically do that.
One of the questions in the chatis, am I going to be speaking to

(10:34):
Canadian taxes?
And unfortunately, I'm not.
This is specifically for U.
S.
Okay, so let's talk about howsales tax is calculated, and
right now I'm just talking onthe big scope.
You have to have economic nexusin your state, and so every
state has a threshold.
Sometimes it's by dollar amount,sometimes it's by the number of

(10:57):
transactions, sometimes it's bythe dollar amount of the
transactions.
It also makes a differencewhether you're doing work out of
your office or whether you'reselling off of an e commerce
marketplace because if you'reselling on Amazon, they're
actually going to manage all thesales taxes for you and all the
state nexus and then you don'thave to do anything.

(11:18):
They just draw the taxes andthey pay them on your behalf.
In most states, services areexempt and you're only paying
sales tax on actual physicaltangible goods, but that is not
100%.
And.
Also, some retail sales may havedifferent rates, depending on
the region, depending on theproduct.
And there's all of this to thinkabout and all of this to

(11:42):
understand.
Now, one of the things that'snice is that you'll start by
setting up the states where youknow you have to.
to pay your sales tax, but QBOwill keep track of your sales
for you and test your economicnexus.
And then if you wind up passingone of the thresholds for a
particular state, it'll actuallygive you an alert saying, Hey,

(12:03):
you are now eligible to paysales tax in that state.
And the, good news is that onceyou hit that threshold, that's
when you start collecting salestax.
So you don't have toretroactively go back and pay
sales tax on sales.
That you did not tax it's movingforward,

Dan DeLong (12:23):
but it's unless you pass the threshold and don't set
it up And then the state decidesto tell you hey, you should have
set this up Two years ago.
And by the way, you owe us backtaxes and penalty.

Alicia Katz Pollock (12:36):
Said.
Yes, exactly.
Okay.
Now, the next element is stateversus local.
Some states just have one taxacross the whole state.
Others break it up by city or bycounty or by parish.
And QBO knows that.
So when you go into your state,if it's California, all you have

(12:59):
to do is set up California salestax.
But if you're in, for instance,here, Alabama, you need to
actually go in and set up thesales tax for each of these
regions.
And then QBO will recognize wheneither you or the client is in
those regions and adjust thesales tax accordingly.
One of the elements of that iswhether the state is origin

(13:22):
based or destination based,meaning that some states
calculate the sales tax based onyour office's address.
And that's easy because you justhave one sales tax no matter
where you are.
Some of them are not.
Do the taxation based on wherethe work is being performed,
where the client's address is.
And that means that you may haveto manage sales taxes for all

(13:46):
kinds of regions everywherewhere your clients are.
And when that happens they do itbased on the customer's billing
address or the shipping addressinside your QuickBooks.
And I'll say more.
About that in a moment.
Okay.
And because location matters inmany states, it's really

(14:10):
important that you're gatheringthe address information of the
clients, because if you're,let's say it's an in state
client, Tax your local taxes areapplied.
If if it's origin based, thelocal taxes are based on the
company address.
And if it's a destination state,the local taxes are based on the

(14:30):
shipping address for the client.
So if you have shipping turnedon, that's what it's looking to
is the shipping address, notnecessarily the billing address.
So you have to stay conscious ofthat.

Dan DeLong (14:42):
Somebody mentioned in the Q and a, I'm just going
to toss this one out here about,The customer's addresses and
their clients and that they hadto copy and paste it.
And that's why, right?
It's, it has to be in thatshipping address field in order
for QuickBooks to know where is,where it's actually going.

Alicia Katz Pollock (15:02):
I will address this specifically.

Dan DeLong (15:05):
Okay, perfect.

Alicia Katz Pollock (15:06):
Okay.
And then just to mention if it'sa state like California where
they do their district and theirlocal taxes based on the
shipping address, but the countytaxes are based on the origin of
the transaction, meaning youroffice.
And so there's that hybridhappening, and that's why we
love this module because itreally does, track all of that

(15:28):
for you.
It's that rooftop mapping you'retalking

Matthew Fulton (15:30):
about, right?
Because we have, WestlakeVillage pretty close to me here.
And one part of the town isconsidered part of Los Angeles
County.
The other part is VenturaCounty.
So we've all probably got thosestories in different states of
on one side of the street youhave a different tax rate than
another side of the street thatyou have to be aware of.

Alicia Katz Pollock (15:47):
Yeah, everything really matters.
I like that, map image that youjust gave.

Dan DeLong (15:52):
Yeah, it's like my, next door neighbor when I was a
kid went to a differentelementary school than I did.

Alicia Katz Pollock (16:00):
Okay, and then the other element is that
the invoice date also mattersbecause it tracks rate changes.
But then there's also statesthat have sales tax holidays.
For example, in September,August and September back to
school.
Some states will.
Waive the taxes on officesupplies so that the kids can go
get their office supplies andnot pay sales tax on that.

(16:20):
So QBO does recognize sales taxholidays in the states where
those are eligible.
So now we need to set up thesales tax center.
And so when you go to the salestaxes, it's in the left hand
navigation under taxes.
The first thing it's going toconfirm is your company address.

(16:41):
So this is where it's using theseller's address.
Unless it gets overridden withall the other stuff I'm about to
show you.
So you make sure your address isin there correctly.
Then you add in your agencies.
If you're converting fromdesktop, it will match your
agencies.
But if this is a new file,you'll have to go tell it, these
are the states where I am doingbusiness.

(17:03):
And then it will know whichlocal and district taxes to
apply.
You don't need to micromanageit.
As I mentioned, there's somestates that are home rule
states, and so it recognizeswhich ones have their own sales
tax rules.
And when you make the payments,it knows, it'll tell you which

(17:23):
ones go to what locality or doyou, need to, and you do, as I
mentioned, have to set up theindividual locations if that's
part of your eligibility.
After you've selected where youare, where you know you have to

(17:45):
pay your taxes, then it will askabout your frequency.
Depending on your volume, everystate has different thresholds,
and so maybe you do have to payevery single month.
Maybe you have low volume in aparticular state and you only
have to pay annually.
It will ask you on that, and ifyou're not sure, call your
Department of Revenue.

Dan DeLong (18:05):
Is that typically the case where it's based on
sales volume dictates thefrequency and state by state,

Alicia Katz Pollock (18:13):
it'll actually like right here, it
pops up and it's telling you,okay, in Arizona, if you only
have 2, 000 in taxes, then youcan do it annually.

Dan DeLong (18:23):
Yeah, and that's, based off of the liability, not
necessarily the growth sales,right?

Alicia Katz Pollock (18:29):
Yeah, that's the sales tax liability
amount, so how much taxes areyou going to have to pay?
Eh, if it's not that much, thenthey're not going to make you
jump through the hoops.
Okay.
Then, you also have the abilityof making custom rates, and if
you are in a state where youhave a use tax, maybe you make a
custom rate for your use tax.

(18:50):
Maybe you have some specialtytaxes, like I have a client a
gas station in North Carolina,where we had to make a specialty
tax for the hot food that hesells inside the gas station
deli.
So that needed its own specialtax rate because he had to pay
it to another agency, so we setup an extra one.
Also, so you can get creativewith it.

(19:10):
I mentioned in Oregon, we don'thave that.
Sales tax.
So what, but we do have localtaxes where I have to pay a
different tax in the city ofPortland versus the tri state
area next to it versus the restof Oregon versus anywhere else.
So I actually made my own customrates for those locations so
that I could run a report andknow exactly how much city tax
and Multnomah County tax Ineeded to pay.

(19:33):
So you can get creative with it.

Dan DeLong (19:39):
Another poll.

Alicia Katz Pollock (19:40):
Go for a poll.

Dan DeLong (19:41):
All right.
So this one is for those of youthat do set up sales tags how
many jurisdictions do they, doyou find that they tend to have?
Is it one?
Is it multiple, but less thanfive or it's, good Lord, it's
more than five.

Alicia Katz Pollock (19:57):
Wow.
We're pretty even across theboard on this one and this just
shows you how complicated thatis.
Yeah.
And, you're always better offsetting up more than you need if
you're not sure if you haveNexus, you might as well.
No, I take that back.
Nope.
Nevermind.
That is wrong.

Matthew Fulton (20:18):
Murph actually put in the chat a question and
want to make sure I answered itcorrectly.
He was asking, you'd mentionedthat when you migrate from a
desktop to online, it'll try tomatch up your sales tax rates
for you.
So he was asking, QBO first?
But if you're doing a migration,my understanding is once you do

(20:40):
that migration, it's going tooverwrite everything in the
file.
Anything that you put in there,you'd have to then go in and
just try to realign it.
I think what you were saying isthe automatic ones that exist or
pop up, if you have the samethings in desktop, that's when
it's going to see those the samename and try to establish those
for you.
Is that right?
Yeah.

Alicia Katz Pollock (20:58):
Yeah.
And Murph may know some secretsauce that I don't about this,
but in general, like you said,when you do a migration, it
overwrites everything in thefile anyway, so it doesn't make
sense to do it.
And know that when you are inthat that transition period
between software desktopcalculated it differently, and
it's not going to necessarily bein QBO ready to tee up for

(21:22):
payment.
And so you'll have thattransition time of your old
sales tax versus your new salestax that you will have to be
conscious of

Dan DeLong (21:30):
without getting too too, deep in the weeds because
we want to make sure we, yeahI'm, on here is Desktop and
QuickBooks Online handle salestax fundamentally different,
right?
You've got an item on your itemlist for sales tax and sales tax
groups and the, calculationmethod and there's no such thing

(21:54):
in, QuickBooks Online.
So there is.
A path to the automated salestax, but it's not immediately
going to set that up as it goesthrough because of the way it
handles it over instead ofQuickBooks online for the
automatic.
All

Alicia Katz Pollock (22:10):
right.
So for sake of time, let's goahead and move forward.
I need to at least cover myfundamentals.

Dan DeLong (22:16):
Yeah.

Alicia Katz Pollock (22:17):
Yeah.
All right.
So the, this poll pretty muchacross the board is, it was,
yeah, even.

Dan DeLong (22:26):
Yeah, multiple but less than five was the was the
most.
All right.

Alicia Katz Pollock (22:34):
Oops, moving on.
Sorry, hit your button.
Okay, now here's the part wherepeople, most people fall down is
that you actually do need to payattention to the sales tax for
each product and service, and ifyou only have a couple, then
okay, but if you have thousandsof products and services, this

(22:57):
can be a bear.
Basically there are exceptions,but retail products are usually
taxable, and services may ornot, may or may not be taxable,
so you have to know that in yourparticular area.
And you can see on the imageright here down at the bottom.
There's either taxable or nontaxable and if you go with the

(23:19):
taxable based on location onlyit's going to just do all the
default stuff for generaltaxability in that location and
if something is not taxable forsome reason it will still
respect that but you mark yourproducts taxable if they are
taxable in any way.
any circumstance, then you dosay it's taxable, and then you

(23:43):
let the system correct forwhether or not you're going to
collect tax in that particularsituation.
Now where it gets morecomplicated is that some
locations have specific taxes.
Some will say this service istaxable at this rate, but this
one's taxable at this differentrate.
Or they have different rates forsoftware, digital goods,
communications, medical devices,food and beverages, clothing.

(24:06):
Florida, for example, has allkinds of crazy taxes.
They have different taxes forhair ribbons and flags.
Their commercial real estaterentals are different rate than
residential.
And you want to go into theseproducts.
all of your products, ifpossible, and see if there is
actually a specific subcategorythat it's eligible for.

(24:31):
For example, in this one if youare selling hunting apparel
hunting apparel with blazeorange and reflecting materials,
that has a specific tax ratesomewhere in the U.
S.
And if that's what you'reselling, check it off so that
wherever it matters, it'shandled.
Same thing here, you can seeathletic helmets, aqua shoes

(24:55):
athletic clothing suitable foreveryday wear, like yoga pants,
versus athletic clothing notsuitable for everyday wear, like
your protection cup.
You want to actually go throughSo you actually want to go
through your products and lookand see if there is a specific
category for it and apply thosespecific categories, then if the

(25:17):
customer lives in that area,then it will give them that
specific sales tax rate.

Dan DeLong (25:23):
And it's important to note that these categories,
just like you said there, whenyou said something that was,
very specific, just because yousee these categories in here
does not mean they apply to youin your particular case,
because, like you said,somewhere in the United States,
Hunting apparel with blazeorange or reflective material

(25:44):
has a unique consideration forsales tax.
Doesn't mean that it does inyour particular jurisdiction.

Alicia Katz Pollock (25:54):
And that's where you let QuickBooks make
the decisions for them.
You just say what is correct andthen it will adjust it if
needed.
Okay, then the next element isthat you also have to set your
default taxes for, yourcustomers as well.
Most of your customers are goingto be taxable, but some are tax

(26:15):
exempt.
Non profits, wholesale withresale, and some Native American
reservations some churches,there's all kinds of different
taxability.
And you can go into everycustomer as well, and in the
customer detail card, there's asection at the bottom to mark

(26:37):
whether they are tax exempt, andthen you can put in their resale
number or their certificatenumber and keep track of why
that customer doesn't pay salestax.
Also, if for some reason youneed an override, and honestly,
I don't think I've ever reallyhad one of these, where you're
selecting a specific tax ratefor a customer, then you have

(26:59):
that ability also.
I'll do that with I was talkingabout using the custom rates for
Oregon, like City of Portlandand Multnomah County.
That's where I'll go in and say,this customer lives in City of
Portland, this customer lives inMultnomah County, and then that
will work.
Override the tax settings, butin general, you don't do custom
rates.
You just do based on location.

Dan DeLong (27:23):
Caleb asked in the, chat what about like partial
exemptions like farmers inCalifornia?
Is that something that you coulddo inside of here where it's, I
don't know what the rules are.
So

Alicia Katz Pollock (27:33):
here's, here are some of the list, but
not the whole list.
And so there's just some thatare general.
And so you can pick off of thelist, I'm not, this is just one
section of the whole big list.
So I'm not sure Farmers is onit, but if it is, then you would
pick it.
Or you just mark it exemptbecause you know that they're
exempt.

Dan DeLong (27:52):
And then your exemption details, you can put
in their certificate number oranything like that.

Alicia Katz Pollock (27:58):
Okay.
And Donna's asking a, question.
If she has commercial rentalsales tax and product sales tax
and has the same agencies, doyou need two sales tax items for
each?
One for rental sale?
So, that's where it's differentfrom desktop.
You, it's, you set your product.
Whatever service you're puttingon your invoices, whatever

(28:20):
product you're putting on yourinvoices, that's what you set
and tell it what it is, and thenQBO will make the decisions for
you.
So yeah, rental sales would be adifferent line item than product
sales.
You have different products, sothat's what you set the tax on.
Okay, so now let's talk aboutthe ins and outs of using the

(28:42):
taxes on your sales forms tocollect.
And so there's a lot ofdifferent places where it
matters.
So the first one is that if anitem is set to be taxable,
there'll be a check mark righthere.
And so that's looking at, yes,this is a taxable item, or no,

(29:02):
this is not a taxable item.
But I'm going to, tell yousomething important right here,
and that is that toggling thistax on and off is a bad idea.
Hypothetically, it works becauseit turns off the tax on the
item, but it doesn't always workon the reports.
And they told me they've fixedthis, but a couple people have

(29:25):
told me it still doesn't work.
So if you have a service item ora product that is sometimes
taxable and sometimes not.
taxable, make two of them, makeone the item taxable and one the
item non taxable and pick it onthe form instead of toggling the
check mark on and off.

(29:45):
That will save some of yourreporting headaches later on.

Dan DeLong (29:49):
Keep the hair where it's supposed to be.
Yeah.
Don't pull it out.

Alicia Katz Pollock (29:55):
okay.
So that was part one was thetaxability on that item.
The second is the location ofthe sale matters and the new
invoices handle this moreelegantly than the old invoices
did where the, you see right nowit says location of sale hidden.
That's what.
The that tells you what taxableregion it's using and if you're

(30:21):
shipping an item, then make sureyou click add shipping info and
what that will do is open up ashipping box and then make sure
that you have the bill to shipto matching like you can copy
pasted or you can go back ifit's going to be a more A multi
use client, go back to theclient card and make sure that

(30:42):
their shipping info is in thereas well.
Whatever is in the ship to willoverride.
All the other location settings.
So the ship from is telling youthe default.
The ship to is, overriding it.
On the old ones and on salesreceipts, there's also a box on

(31:02):
the far right hand side thatsays location.
That's the same as what is nowthe ship to.
From and if you're in one ofthose sales forms, whatever you
want the shipping to calculate,you can copy it and paste it
into that shipping location, notshipping location.
Sorry, location box.
Unfortunately, I don't have ascreenshot for it, but that will

(31:22):
override it as well.
So this is super important.
If you're looking at yourshipping and it's looking at
your tax and it's notcalculating right, use that it.
Add shipping info box to getyour overrides.
now down at the bottom we havethe select tax rate and it says

(31:44):
automatic calculation.
That's what you want most of thetime.
You do not want to override thatwith something specific to your
state or any of those customs.
It works best if you just let itroll.
So this is what you want.
The ideal situation for how youwant it to look.
And like I said, PebCat, thatmeans problem exists between

(32:07):
chair and keyboard.
It means you're doing somethingwrong.
This is where, if you need tooverride the, tax, you do it in
that ship to box.
Okay, now down in the bottomright hand corner of your
invoices and your salesreceipts, you also have this
little these little arrows.
Is your sales tax before orafter your discounts?

(32:30):
If you take the discount first,get a total, and then you tax
that total, then, you want it bydefault, but if you want to do
the tax and then give thediscount at the end, you have
that option.
So use, click that little arrowand it will rotate the two
fields.

(32:51):
Now, sometimes you're like, howdid they, where did that come
from?
There is a little let me show itto you.
Oh, I don't have it on here.
There's a little see the math.
Oh, there it is.
It's right there.
Thank you.
Where it says, see the mathunderneath these.
When you click on see the math,it will actually open up and

(33:11):
tell you everything about wherethat calculation came from.
The customer's not tax exempt,the location of the sale is this
address here's the state tax andall of the relevant county,
district, parish taxes, and thetotal rate that's being applied.
And then it'll show you theproducts and services, and if it

(33:33):
says uncategorized standard rateapplied, then you just have it
on that default of taxable.
If you had it for hair ribbons,it would show you what that tax
rate is, so it shows you exactlywhere it came up with the logic.
You have the ability to overrideit by clicking on override this
amount, but you better have areally good reason for doing

(33:56):
that, and if it's So if you havea problem with your settings,
you should actually backtrack,go fix it, and then calculate
the invoice before you re,before you resend it.
Okay, so that's how it's doingall of the all of the
calculations.
You have complete transparency,but that you have to have three

(34:20):
whole different elements alllined up and dialed in to make
it work well.

Dan DeLong (34:24):
Yeah.
It's actually the way I, tend toexplain it to people with sales
tax is there's four themes,right?
It's what you sell, who you sellit to, when you sell it and
where you sell it.
And with that sometimes of whendo you sell it because there
could be a holiday or day thatparticularly, you know, that

(34:45):
changes the whole thing.
And then as far as how much iscalculated based on those
categories and those types ofthings, right?

Alicia Katz Pollock (34:55):
Exactly.
That's a great summary.
And there's a question in the Q&A.
Some items want some customerswant items drop shipped to
various addresses.
That's what the ship to is for.
You can put it in that ship tojust on that one invoice.
It doesn't have to be on thecustomer's card for forever.
Okay, so now the sales taxcenter.

(35:16):
It's super important that youuse the Sales Tax Center to pay
your taxes.
What this is showing you is thecurrent accruals, what's up and
coming, what you paid in thepast, what's overdue.
There are also, there's a buttonhere for the sales tax settings,
so that you can adjust yoursettings.
This is also right here, whereis the economic nexus tracker,

(35:40):
where you can go and see howclose you are to hitting your
thresholds.
In different states, and it'salso where you go for the
reports.
Now, on the screen that I'm on,the reports button is on the
left.
I think that's just because Ihad the image shrunk.
The reports button is usuallyover on the right hand side.
So here, in this example, I'vegot Arizona and California, and

(36:00):
you can see that Arizona has agreen box around it, so right
now it's showing Arizona'staxes, and then if I clicked on
California, it would showCalifornia.
California's taxes.
And then down below the fold onthis, you would see every single
month you would see if the taxwas accumulated, if it's
overdue, if you've paid it, itshould all say zeros.

(36:21):
And you can also see what is upand coming.
When you go into the sales taxbutton that was over on the
right hand side, this is whereyou can see your automatic sales
tax agencies and also the anycustom rates that you have set
up.
There is also a history that'sthe part down below the fold

(36:44):
that I was talking about whereyou can see.
Everything about all of yoursales tax payments themselves.
Now, the upcoming and overduepayments, those are those rows
that we just saw.
You first, like I said, click onthe state.
You can adjust the year.
You can see this year and lastyear, but you can't go before

(37:07):
further back than that.
I wish you could and then you dowant to initiate the sales tax
payment from this center.
Don't just write a check andthen categorize it to the sales
tax because it's not going tochange these numbers.
So you go in and you use thiswhere it says view tax return,

(37:27):
and then that will start theprocess of making the payment,
but it doesn't make the paymentfor you.
It's not like payroll tax.
You still have to go to yourstate's department of revenue.
In order to pay it, however,they are in the process of
working on automated paymentsthrough the system.
They have rolled it out in NorthCarolina, and they are working

(37:49):
systematically through all 50states in order of complexity,
and so I think it's going totake a couple years, but
eventually we're all going to beable to pay the taxes right from
this window.
Okay so now under the reports,there's also three buttons for
tax liability reports.

(38:11):
I'll, go show the reports in afew minutes.
I've got other stuff I want totalk about first.
Okay, so there is a reportsbutton.
Okay, now when it's time to makeyour sales tax payments.
So like I said, you click viewtax return on the far right hand
side.
And then you'll get a report upthat will show you your gross

(38:35):
sales, your non taxable sales,your taxable sales, and the tax
amount.
Now, I'm The, this, there's alsoa view tax liability report
right down, whoops, I didn'tmean to do that down at the
bottom of it so that you canactually see this in report
format.
And when you pay this, it willreduce this tax liability down

(38:58):
to zero.
to zero.
Now that gross sales and nontaxable sales and taxable sales
are calculated not necessarilyoff of whether you collected the
sales tax or not.
And there's a couple of you onthis call.
Jeff Weathers, I know thatyou've been battling these
reports.
And that's because if people areunchecking the sales tax check

(39:21):
mark, these reports are actuallygenerated off of how many times
did this product sell and howmuch, how was it taxable or not
at the time, which may bedifferent than whether you
collected the sales tax or not.
And that's why I say if it'ssometimes taxable and sometimes

(39:41):
not.
Make two items

Dan DeLong (39:44):
very similar to payroll forms.
If you were using a desktop tocreate payroll forms There are
some things on that form thatare pulling in data from
QuickBooks And there's somethings on that form are that are
being calculated based on thedata that gets pulled QuickBooks
So that's an example of thosethings and I don't want to

(40:04):
stress Something that youmentioned and this process here
because a tax payment You Insideof QuickBooks is a special
transaction.
And, even though you'rephysically you physically may be
writing a check or doing an ACHgoing into the bank register and
paying your sales tax, that way.

(40:28):
Is not going to it's not, theprescribed workflow, right?
And that's, where things get offthe rails

Alicia Katz Pollock (40:36):
where

Dan DeLong (40:36):
I've seen people put it to sales tax expense which is
never an expense to the company,unless, they're doing it wrong.
And then there's a fee,associated with that

Alicia Katz Pollock (40:49):
and I'm actually going to get

Dan DeLong (40:50):
through here.

Alicia Katz Pollock (40:51):
Yeah, going with what you just said, one of
the things that I want toemphasize is in this history, if
you either manually categorizetransactions to the sales tax
liability or you change anytransactions that have already
been processed you may go fromnumber from zero back up to some

(41:12):
numbers.
In here, and I always reconcilemy sales tax liabilities to zero
to make sure that all the salestax collected is what was paid
and that no sales tax expenseswere categorized from the
banking feed, as an, that shouldhave been an expense for other
reasons that are in there orvice versa.

(41:34):
So I always reckon reconcile mysales tax to zero and I keep an
eye on these changes.
Now, occasionally, I do seenumbers pop up back into here,
but after I do the research, mysales tax liability is still
zero, and I just don't worryabout it at that point.
I just otherwise, you pay, youstart paying sales tax whack a

(41:54):
mole, and you'll make a changeto make this zero here, and then
it'll affect something somewhereelse down the line, and it's
just not, it's not worth it.
You don't have to work that hardon it.
But when you are so going backto the conversation about,
paying your sales taxes.
So after you have when you havethis report up, you then go to

(42:17):
your Department of Revenuewebsite and you put in these
numbers.
They'll ask you, how much wasyour gross sales?
How much was your non taxable?
Whatever numbers they ask for,they'll tell you what your sales
tax is supposed to be.
And sometimes it's right on thehead, sometimes there's a
rounding error, and it's off bya couple cents.
But if you find that the numberthat they're telling you is

(42:37):
completely different, then youneed to go back and check your
settings.
now, if it's a small amount,That you are adjusting.
There's that link, but, there'sthis link right here for add an
adjustment.
And then when you add theadjustment, you'll pick the
reason.

(42:58):
Was it a sales tax prepayment?
Is it a rounding error?
And you'll pick the adjustmentdate.
And then you'll pick the accountthat you are going to adjust to.
Now, the thing is that if you'readjusting up, it needs to be an
expense category.
And if you're adjusting down, itneeds to be an income category.
I sometimes have two sales taxadjustments or I have sales tax

(43:20):
adjustment income.
And then I just put the salestax adjustment expense just in
taxes paid or sales taxes paid.
And the reason for that is thatwhen, if you If you
overcollected, then you have alittle bit of extra sales tax,
and so that's income.
And if you undercollected,you're paying out of pocket, so

(43:41):
it's an extra expense.
Now, if you're talking just acouple bucks, it's absolutely
not worth micromanaging it.
But if you're talking, you'vegot either a consistent
discrepancy or large dollaramounts, then you need to go
back and double check yoursystems.

Matthew Fulton (43:59):
A good example of this, and somebody actually
has mentioned it in the commentsalso, is I was helping one
client with their sales tax, andtheir state, if you paid early,
you would get a credit backevery month.
So you always had this trailingcredit piece that you had to
enter in as the credit to get itto where you could zero out your
sales tax payment every singlemonth.

Alicia Katz Pollock (44:19):
Exactly, So after you set these adjustments,
the total tax due should nowmatch what it says on your
Department of Revenue website.
And then you click record thepayment, and then it'll give you
the, place to say what date andwhat bank account you're paying
out of.
And then this should matchexactly the amount that comes in

(44:41):
from the banking feed.
And what this is doing, like Dansaid, is this is actually making
not an expense, but an actualsales.
Tax transaction that is hittingthe liability account to zero it
out.
And then that's what Ireconciled together.
Okay.
Now, Right now, you still dohave to pay on your Department

(45:04):
of Revenue website, and like Isaid you, they're still the
boss, and so you want to paywhat they, say and like I
mentioned, they are working ondirect pay, North Carolina is up
and running I saw another statego by, but I can't remember what
it was my question to them iswhat if we've got these small

(45:25):
discrepancies How are youworking that out?
And I have no answer for that.
That remains to be seen.
I'm sure they're wondering thatthemselves.
Okay.
Now, when what's super importanthere is that when you see the
transaction in the banking feed,you match it to that sales tax
payment that was made.

(45:46):
I see a lot of pebcax.
I see a lot of people will typein and say, This was my sales
tax expense.
And either they're duplicatingit in the sales tax liability,
Category or there have an extraexpense and then it doesn't
reconcile.
So always, Pay with the salestax center, match in the bank

(46:08):
feed.
Now, something else that isreally cool, they just added
reminders.
When you're looking at the salestax screen and you're looking at
Department of Revenue, you canadd a reminder that you can then
have it pop up in yourreminders, which show up Only in

(46:28):
your home dashboard, if youhappen to click on it and notice
it.
But I use reminders.
So it's part of my routine.
And so you can also have itemail you and then you can say,
Oh send it seven days before thedeadline or remind me again, one
day before the deadline so thatyou don't forget to pay your

(46:49):
sales tax.
So this was a nice little valueadded that just showed up a few
months ago.
It hasn't been there for verylong.
Okay, like I mentioned Iactually, oh, so it was
Wisconsin was, the other one.
They are beta testing automaticpayments.
I love this line.

(47:10):
We're still working out pricing.
We'll let you know before you'recharged.
Yeah.
This goes to that concept thatI've been talking about this on
my podcast that Intuit isbeginning to rethink how they
present QuickBooks and nowthey're thinking about it as
what we take for granted as thefeatures, they're now Thinking

(47:33):
about it in terms of moduleslike add-on modules like
QuickBooks payments.
We just think about QuickBooksPayments as that's how
QuickBooks works, but they thinkof payments as an add-on module
payroll is an add-on module.
Online bill pay is an add-onmodule, and now this sales tax
payment is also going to be a.
Added on module.

(47:54):
So they'll, it'll be free forprobably a couple of years until
they work out the kinks untilthey've decided it's worth
paying for.
And all right, I'll get off mysoapbox.
Okay.
Next I want to talk about thedifferent sales tax reports.
I already mentioned the basicsales tax liability report, and

(48:14):
that's the one that is availableright inside the sales tax
payment when you go in to makeit.
And what this does is it breaksdown your gross income, non
taxable and taxable amounts bystate, by city, by jurisdiction
by all the counties.
So you can see what goes to eachplace, and then you can click on

(48:39):
any one of those and it willshow you all of those relevant
transactions.
So if you're looking at thatgoing, huh, my sales tax is
high, you can drill in and thengo see huh, why did cool cars
pay 175 in sales tax?
That's a lot of tax.
And then you can go look at theinvoice to go do some research
on it.

(49:01):
Another one is the taxablecustomer list, and so really
it's just a customer contactlist, but it's filtered for your
customers who are marked astaxable, and for most of you,
that's going to be most of you.
There's also a non taxabletransaction review report.

(49:24):
And so this will allow you tosee any transactions that didn't
have sales tax applied.
So you can go, Huh, wait, whydidn't I charge them sales tax?
And there's a taxable salessummary as well.
And this is nice because now youcan actually see your now this

(49:44):
isn't in the Sales tax center.
This is in the reports center.
So you go to reports to go findthis one.
This is cool, because this willallow you to see how much sales
tax you collected by product.

Dan DeLong (49:58):
Is this by products inside of QuickBooks?
Or is this by categories thatyou've assigned those products?

Alicia Katz Pollock (50:06):
No, this is by the products on your products
list.

Dan DeLong (50:09):
Got it.
Okay.

Alicia Katz Pollock (50:12):
Okay.
Now, sometimes QBO's sales taxis not enough.
Maybe you do business all theway across the country and you
have 50 states that you need topay tax on.
Here are some of the situationswhen QBO's built in sales tax,

(50:32):
automated sales tax module isnot sufficient.
Again, national sales.
Maybe you have internationalsales.
Maybe you have some reallycomplex local taxes.
Maybe you're doing e commerce,or sometimes your sales are not
recorded through QuickBooks andthey're recorded in some other
software.
So in those cases, you can't useQBO's software.

(50:54):
It's not sufficient or it's justtoo much.
Work for you.
So the two most popular thirdparty apps are Avalara and
TaxJar, which I think wasrecently bought by Stripe, but
both of those are sales taxsolutions that you can add into
your commerce site or the yourPOS system or other And then

(51:21):
they synchronize to QBO andeither you're paying your sales
taxes through those solutions orthey do the work and you still
pay it through QBO depending onyour specific situation.

Dan DeLong (51:33):
And the perfect segue is next QB Power Hour,
we're actually having Avalaracome on to talk about some of
their, solutions and how thatwould actually work.
Like somebody was mentioning inthe chat we have a POS system
that's dumping things into,QuickBooks.
And it's only doing that as onelump transaction.

(51:53):
So it's really difficult for,QuickBooks online to, parse that
out.
And that's true.
It is actually going to bepretty difficult when it's in
there.
QuickBooks is pretty good atdoing what it's told.
But if something is telling itto do things the way you don't
want it to, then you have tofind some alternative solution

(52:16):
to do that.
And this may be a good use casefor something like that.

Alicia Katz Pollock (52:20):
Absolutely.
Okay, good.
Now, some questions have gone byin the chat about what to do
about fixing sales taxcollection errors, but we only
have five minutes left, soobviously I can't go into all of
that.
And I mentioned that what I justwent through today is really
just the essentials.

(52:41):
of the setup of it.
It's not everything that thereis to know.
You're asking all kinds of goodquestions that I don't have time
to answer.
Although I think I'd be able toget a couple of them.
So I do have a full sales taxclass.
That's two hours.
It does have C.
P.
E.
And Pick up from here and I gointo a what do you do when I

(53:03):
forgot to charge my customersales tax and I'm going to go
after them to go get the salestax or vice versa.
What if you charge somebodysales tax but you weren't
supposed to?
How do you refund them?
So I those are two examples ofof.
The troubleshooting that I talkabout in my class.
Also, I just told you a bunch ofstuff when I teach the class, I

(53:27):
actually go into the product.
Somebody was just saying whereare those reminders in my class?
I actually make a reminder.
I actually go through and I dothe sales tax setup and I go
into the products and I do thechoosing and I demonstrate
everything that I just told you.
So that class is definitely likethe place to go next.

Dan DeLong (53:51):
Okay.
Anything, else you on your,slides there?

Alicia Katz Pollock (53:56):
Yeah, just let me do it.
Let me do the quick wrap up andthen we can either take
questions or, go into yours.
Here's again that sales taxlink.
This link over here actually hasan affiliate code on it, and
that actually gives Dan and QBPower our credit for the
referral.
And I know I gave you a directlink and a QR code.

(54:17):
But if you'll do them the honorof hitting that affiliate link
and Dan, if you have any way ofpasting that into your webinar
chat, then I'd love to sharethe.

Dan DeLong (54:28):
It is on the, it is on our the landing page that we
made for you on our site.
So if where the handouts are soyou can access it right from
there as well.

Alicia Katz Pollock (54:38):
Okay, excellent.
And I've mentioned my program acouple times.
We call it the Royal Wise Owls,which stands for the on demand
web based learning solution.
And I have an entire learningmanagement platform with over 50
different QuickBooks classesthat are from everything from
I've never used it before.
I'm converting from desktop.
I have no idea what's going on.
All the way up through deepdives like this in sales tax,

(55:03):
and you can take individualclasses or I have a whole
membership program where thebronze is like the core classes
that everybody needs.
The silver is access to the fullentire library.
The gold also includes an hourwith me every single month where
we can do hands on work insideyour books.

(55:23):
The all the memberships comewith a monthly members meeting.
That I call an open mic wherepeople just pepper me with
questions until I cry uncle andthen the silver and gold
actually have a second, we callit a second mastermind meeting
and so there's lots ofopportunity for community.

(55:44):
If you are with an accountingfirm, we also do custom branded
training portals.
If you need to implement train,QuickBooks training at your
firm, I can help with that.
I do have a partner program.
If you want to recommend myclasses to anybody else, like
you saw, that we can doaffiliate links for you.
And I also do content licensingas well.
I mentioned that I'm with theunofficial QuickBooks

(56:07):
accountants podcast.
And so definitely check me out.
Check us out on your favoritepodcasting app.
And I think we have one morepoll that we have to run.
Yeah.

Dan DeLong (56:19):
Really just would these help?
Was this helpful?
Did you learn something new?
I know I did, and I think I knowa lot, but one, one of the
things I wanted to mentionreally quickly, Alicia, and I
really appreciate you doingthis.
The.
The sales tax function inside ofQuickBooks is entirely hinged in

(56:42):
on a sales transaction, right?
So if you're using somethingthat brings in journal entries
or brings in transactions thatare not sales transactions,
sales taxes, you're going to be,you're going to be frustrated on
on using sales tax.
So I wanted to call that outjust to make sure that people

(57:03):
Might be importing things in ordoing things.
If it's not on a saletransaction, that sales tax is
not going to be calculatedproperly.

Alicia Katz Pollock (57:12):
That's a really crucial point.
So I'm glad that you brought itup.
So we're talking invoices.
We're talking sales receipts.
We're talking also credit memosand refunds also affect sales
tax.

Matthew Fulton (57:24):
So the flip side of this as well, which was a
question was asked earlier, isnow if you also take into
consideration where you'rebuying stuff and if you're
paying tax on the purchase or ifyou're not, and you need to be
able to record that to to fileyour sales tax, like a use tax,
so forth.
Okay.
That's where you have to createyour own separate line item, and
you'll be putting those on yourbills or your expenses,

(57:47):
recording the amount there, sothen when you go, the sales tax
center is only going to show youthe actual sales tax, that's
owed, you'd pull up the separatereport to figure out what your
adjustment would be before youfinish your filing, basically.

Alicia Katz Pollock (58:01):
Yeah.
Now, some of you are in reallycomplicated situations where you
actually need to go in and crossreference your reports and make
sure that it's all working.
And I hear from people,honestly, that it doesn't quite
match up sometimes.
But for normal routine sales,you're, within spinning distance

(58:22):
enough that your, state's notgoing to care if you're off by
three bucks.

Dan DeLong (58:27):
Exactly.
So I appreciate that.
That was like a.
Sandwich mushing of, sales tax.
Alicia, I really appreciate youjoining us today.
And really unpacking the E Idon't know.

(58:48):
What do you, what are thenuances of it?
Met a lot for words.
And, I wanted to really thankyou and Matthew for joining us
today.
as we're coming up onThanksgiving, Having folks like
you in this community, willingto, educate the folks that, that

(59:12):
need it is, just one of thosethings that we were talking at,
into a connect about just howthis community is, so unique.
That we, being able to lift usup and elevate each other is is
fantastic.

(59:32):
And.
Just a little thing that I,created from my little AI
helpers that I have is agratitude guided meditation.
It's totally free.
You can check it out on onSchool of Bookkeeping.
I put it in the chat there.
You can, it just allows you fiveminutes of just really

(59:53):
Thankfulness, reflectiveness,and guiding your just taking a
little break so that sometimeswe get so wrapped around the,
minutia of things that we'redoing each day.
Just really need a, reset andhopefully that's, that, that
helps.

Matthew Fulton (01:00:13):
Thank you.
I'm grateful for it.

Dan DeLong (01:00:16):
And then one last thing I wanted to, I know we're
a little over, if you guys canstay, that's totally fine.
We wanted to talk aboutMichelle.
And as that she is, he is semiretiring and since he's not here
and hopefully she's notwatching, we can talk about her

(01:00:37):
behind her back.
But what I was hoping to do isthe last QB Power Hour this year
is surprise Michelle.
And what I wanted to do is,create just a space where you
know, people who have hadinteractions with her or been
affected by impacted by,Michelle, I know I have.

(01:01:02):
A, just a moment to to expresstheir appreciation for for
Michelle, and I'm trying tocreate a, a little, video.
So there's a link that I justput in the chat.
If you want to click on it youcan record a little thank you
video or just anything that amemory of you with Michelle or

(01:01:30):
impact that, it might had inthis, whole service here, we'll
create and compile those, thosesnippets for her and we wanted
to share that with her as athank you for our last Community
Power Hour, which will beDecember Before the holidays,

(01:01:51):
let's see, that's going to bethe 17th of of December.
So if you have time on yourcalendar you can, join us.
Great.
And we'll, make that a littlebit more, Pretty flowing
conversational.
It may not take the whole hour.
It may take two hours.
I don't know.

(01:02:14):
Appreciate if you could help usout with with sharing your
thoughts about about Michelleand the impact that, that you've
had or that she's had over overyour career.

Alicia Katz Pollock (01:02:31):
Michelle taught me one of the most
important things that I neededto know about bookkeeping.
I remember it at my firstQuickBooks Connect and that was
that Opening balance equityneeds to be zero, and you zero
it out by moving it to retainedearnings.
That fact had escaped me 15years ago, I did not know that,
and I remember, I still actuallyremember Michelle I have a

(01:02:53):
visual of her saying that,because it was just like, I have
work to do.
Yeah,

Matthew Fulton (01:03:02):
many things learned from her.
My best memories, of course, arehaving the opportunity to hang
out and talk with her at thedifferent conferences.
But I want to remind everybody,we're counting on the fact that
she's not going to go back andwatch this episode.
So that also means don't go andtell her what we're trying to
do.
We're going to do our best totry to keep this a secret on
something that's publiclyavailable knowledge wise, but
don't tell anybody.
So except your friends.

Dan DeLong (01:03:25):
Yeah.
So we want to try to keep it asurprise, but I, It's bound to
leak out, but I'm sure she'llact surprised even if she,
knows.
Awesome.
All right.
I appreciate y'all joining ushere today on the QB power hour.
We'll see you next time.
Again we'll be having Avalara onto talk about a little minutia

(01:03:47):
details about those things thatwe need help with with a service
or software that that can helpout with with sales tax.
And we'll see you next time andhave a great Thanksgiving,
everybody.