If your business is registered for Sales Tax, you must track and report taxes collected on sales (Sales Tax on Sales) and taxes paid on purchases (Sales Tax on Purchases).
NuMetric allows you to create all necessary tax rates and automatically handles the accounting behind them.
How NuMetric Handles Sales Tax Accounting:
Sales Tax on Sales
This represents the tax you collect from customers when selling taxable goods or services. Since you owe this amount to the tax authority, it is recorded under Liabilities in your Chart of Accounts.
Sales Tax on Purchases
This is the tax you pay suppliers when buying taxable goods or services. You are usually entitled to reclaim this, which is recorded under Assets as recoverable tax.
NuMetric automatically creates the necessary Chart of Accounts entries for both types of sales tax, ensuring proper VAT reporting and financial tracking without manual setup.
To create and configure your sales tax settings in NuMetric, follow the step-by-step guides below:
These guides walk you through the process of adding tax rates and explain how NuMetric automatically handles the accounting side through your Chart of Accounts.