Tax settings are the rules and regulations that govern the taxation of individuals and businesses. Proper tax planning and preparation are necessary to ensure compliance and minimize tax liability. Tax professionals use strategies such as maximizing deductions and credits, structuring transactions efficiently, and staying up-to-date on changes to tax laws. Compliance is essential, as failure to comply can result in penalties and legal consequences. Law accounting provides the organization functionality to define Tax classes. Tax Classes help define different taxes in the system, and provide the ability to apply them at the client level.
- Navigate to the LawAccounting application and click the Tax classes tab.
- This should bring you to the list view of all Tax classes defined in the system, Picture 3
- Click New to create a new Tax Class, Picture 4
Picture 3: List view of all Tax Classes
Picture 4: Creation of a new Tax Class
Tax Class Name: The name of the Tax Class, like GST, HST
Type: There are Two options to select Billing or Voucher. This determines where to apply this tax class. If you are selecting Billing, this class will be added at the time of invoicing and if you are selecting Voucher, this class will be applied at the payable time
Tax GL: The associated Chart of account item with the tax.
