Join us in welcoming tax groups to Zoho Books and Zoho Invoice. Tax groups will revive the way you work with your taxes.
When
there’s a need to use more than a single tax to your line items, you
have the option to group those taxes into a tax group and associate
that tax group to the line items, instead of the individual taxes. For
example: In the US state of Alabama, a federal tax, a state tax and a local tax are applicable. For ease of use, the three taxes could be grouped together into a tax group named “Alabama Taxes”. While invoicing customers in Alabama, this tax group would be used in place of three separate taxes.
In the example above, if the Federal tax is 15%, the state tax is 5.6% and the local tax is 3.5%, the tax group “Alabama Taxes” would impose a 24.1% tax on a line item. Besides this, you could also mark one of the taxes in the tax group as a “compound tax”.
Here are some FAQ which we presume would help you get started with using tax groups.
What if you use only one tax?
If you deal
with just a single tax, you can apply the tax directly to your line
items. Things change only for those who deal with more than a single
tax.
Why tax groups?
To make your invoicing simpler and to avoid any errors
while associating taxes. Earlier you’d have selected from two
drop-downs a tax 1 and a tax2. Now, you’ll have one drop down to select
from. Your tax selection could either be an individual tax or a tax group.
Here in our example, though the effective tax rate is 24.1%, on the invoice you’d see a clear break up of each of those taxes.
How easy is it to set up tax groups?
Very easy, we would say. We’ve provided an interactive wizard within your account, to help you set up tax groups. This
wizard will show you the combination of taxes that you’ve used in your
invoices. You can name and create a tax group out of each of those
combination. Now that’s
more than what you bargained for, right?
Wait no more, head straight to your Zoho Invoice or Zoho Books account and set up your tax groups.
If you haven’t been following us on twitter it’s high time you did because we’ve been tweeting some all our updates there by the day.
My taxes are not auto calculating on my invoices. I've followed the instructions and have set up an 8.25% sales tax which I entered as a compound tax similar to the Alabama example although instead of a group I just selected the compound option. Now when I create and invoice, it shows the sales tax but it has it at $0.
Thanks to everyone who love this addition. This is just one "fait accompli", we have a lot more lined up for the weeks ahead.
You guys are Awesome! Thank you for making doing business easier all the time. I look forward to new features from ZOHO in the near future.
Its Good
Love the new way.. " Dunrite"..