Let's make sure we'll be able to resolve your sales tax issue, K Gallo.
QuickBooks calculates the total sales tax rate based on your customer's sales tax exempt status, where you sell and ship and your service or product's sales tax category. May I know what specific report are you running when trying to comparing the totals with the Sales Tax Liability report?
If the total sales on your Sales Tax Liability report is different with the Profit and Loss report total income, the total sales and total income won't always match since there are transactions that can appear in a data file that will make it unlikely for the both reports to match. You'll want to compare the two reports to see which transactions are causing the discrepancies instead.
Another reason why your reports aren't matching it's because of the accounting method that you're using. Each method reports your income and expenses differently. When you use the cash basis method, you report your income once you receive it. But when you use the accrual basis, you report your income when you bill it. You'll want to check what method are you using when running the reports. To change change the accounting method, you can follow the steps below:
- Select Settings ⚙, then select Account and settings.
- Go to the Advanced tab.
- In the Accounting section, select the Edit ✎ icon.
- Choose the Accounting method.
- Select Save, then Done.
To dig more on the difference between the two different kinds of reporting method, check out this article for more details: Choose Between Cash And Accrual Accounting Methods In QuickBooks Online.
Furthermore, you can filter specific information to make sure your report will show the data you need. Go through this article for your reference: Customize Reports In QuickBooks Online.
Keep me posted of you need anything else about sales tax. Remember, the Community is always right here to attend to all your needs. Have a great day!
