Use a Cloud Payment Processing System for Sales Tax Collection

by David Dierking

0 min read

A cloud-based payment processing system can make collecting sales tax as well as accounting and bookkeeping easier and less prone to errors. For example, with QuickBooks Online Payments, you send an invoice to your client and enable the system’s online payment option. When your client receives the invoice, he pays online and enters his credit card details, and the funds are dispatched to your bank account.

On each invoice, you can customize the sales tax rate and the type of tax depending on the location of your client. When your client pays the invoice, the payment is instantly recorded in your accounting software, with the tax noted separately. That streamlines the process of collecting sales tax and tracking it. By extension, that makes it easier to file sales tax returns with the Canada Revenue Agency or the provincial governments that collect provincial sales tax.

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