In this video, I will explain how to set up and manage tax rules in the system. Proper tax configuration is essential because it directly affects your invoices, expense reports, and journal entries.

Once set up at the organization level, each tax rule can be reused across all your invoices, purchase orders, and payments. This ensures consistent tax calculations throughout the entire system without the need for manual entries every time.

To create a new tax, click the Add Tax button. You will need to enter the Tax Name, the Rate as a percentage, and a brief Description. Next, select the Tax Type and choose the correct Post Account from your Chart of Accounts where these taxes should be recorded. Click ‘Save’ to finish.

If you need to update a tax rule, simply double-click on the tax line. You can modify the name, rate, or account mapping for all future transactions. It is important to note that these changes do not affect existing transactions; this ensures your historical data remains unchanged for audit accuracy.

If a tax rule is no longer needed, you can Archive it. Archiving prevents the tax from being used in new transactions while still preserving all your historical data for financial reports. If you ever need to use that tax rule again, you can easily restore it from the ‘Archived’ tab.