If you are a small business based in Canada.  We have all the Canadian taxes included in our online accounting software.  Since Clarity Accounting is based in Canada, we understand the complexity of the Canadian tax system.  All you have to do to make sure the tax codes will be automatically included is to make select your country as “Canada” when filling up the information for your Business Profile.

There are two ways to get to the Tax Configuration page:

1. From the “Taxes” link under the “Setup” section on the Dashboard
   
2. From the data entry box under “Sales Tax”
   

Tax Configuration

Many small businesses have to charge GST, HST, PST, and/or QST for goods and services sold.  When the tax settings are properly set up, Clarity Accounting will track the sales taxes payable / receivable for you when you sell goods and services.  For example, GST payable usually refers to the GST you charge your clients and later have to remit back to the government.  GST receivable usually refers to the GST you pay on expenses that you can file for the government to pay you back.

Tax Setup Instructions

1. Click on the check box on the top left hand corner under the “Sales Tax” heading that says:
   “This business pays or collects sales taxes in Canada”
   
   
2. If your business is registered for GST or HST, please click the check box and fill in the necessary information.  Your GST, HST, PST & QST number will show up on the PDF invoices created.
3. Click “Save”
4. When you enter your income or expenses, you should see all the taxes you have selected to be applicable to your business are included in the “Sales Tax” section:
5. Shortcut Keys: If you would like to speed up the data entry process, you are welcome to type in:
   g for “GST”
   p for “PST”
   B for both “GST” and “PST”

What does the “-5% GST” function do?

This function is mostly used when entering expenses.  For example, if you go out for a meal with a prospect that cost you $100 including GST, you would put the price as $100 and the tax as “-5% GST” or simply “-g“.  This just means that the subtotal of your meal actually came out to $95.24, but after adding 5% GST ($4.76), your meal had a total of $100.  This process simply allows our online accounting software to track the amount of “sales taxes” you are paying on expenses without you having to go through the process of doing that calculation yourself.

If you were to have a meal that had a subtotal of $100 and you chose the “5% GST / G” option, the meal would have a total of $105.00 with 5% tax included.

Reports

Reports on taxes payable and receivable can be found at the bottom right hand corner of the “Dashboard” or in the “Balance Sheet” section.

Additional Help

If you require additional help in how to create tax settings for other types of taxes, please contact us for further instructions.

There is a saying that there are two things that are certain in life — death & taxes.  Well the death part is not something we have to deal with imminently, taxes however, can be very real for anyone running a business.

At Clarity Accounting, we have implemented a system that allows people from anywhere around to world to include sales taxes in their income and expense transactions.

If you are a Canadian business, please refer to the following help file “Tax Setup for Canadian Businesses“.

There are two ways to get to the Tax Configuration page:

1. From the “Taxes” link under the “Setup” section on the Dashboard
   
2. From the data entry box under “Sales Tax”
   

Tax Configuration

Many small businesses have to charge sales taxes for goods and services sold.  When the tax settings are properly set up, Clarity Accounting will track the sales taxes for you when you sell goods and services as well as tracking sales taxes you have paid on expenses.

Tax Setup Instructions

1. Click on the check box on the top left hand corner under the “Sales Tax” heading that says:
   “This business pays or collects sales taxes”
   
2. Fill in the appropriate information in the fields provided.  For example:
   
3. Click “Save” to save your tax settings
4. The “Sales Tax” options will now be available for you when entering your income or expense data:
   

What does the “-Sales Tax” function do?

This function is mostly used when entering expenses.  For example, if you go out for a meal with a prospect that cost you $100 including tax, you would put the price as $100 and the tax as “-Sales Tax”.  This just means that the subtotal of your meal actually came out to $95.24, but after adding 5% Sales Tax ($4.76), your meal had a total of $100.  This process simply allows our online accounting software to track the amount of “sales taxes” you are paying on expenses without you having to go through the process of doing that calculation yourself.

If you were to have a meal that had a subtotal of $100 and you chose the “5% Sales Tax” option, the meal would have a total of $105.00 with 5% tax included.

Reports

Reports on taxes payable and receivable can be found at the bottom right hand corner of the “Dashboard” or in the “Balance Sheet” section.

Additional Help

If you require additional help in how to create tax settings for more than one type of tax, please contact us for further instructions.