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Video Tutorial Transcript
00:06 Hi there, Irina here. In this video, let's learn how to set up and manage tax rates in Zanda, including creating tax lists, configuring invoices, adding taxes to building templates and reporting on taxes.
Creating Tax Rates List
00:22 Let us start with generating your list of taxes. To do that, let's go to the settings menu and in the billing section let's select tax rates.
In this custom list you can generate any tax that you need to use with your invoicing and it depends on the country you're in, your country legislation and so on.
00:47 So this is a completely custom section of Zanda and you can set it up the way you need. So to add a new taxi only need to click on add tax rates and fill in the tax name and the tax rate.
01:04 Make sure it's active and click save. That's all. You have created a new tax rate that you will be able to use later when you are creating your service items, product items or session packs here in your Zanda account.
01:21 If any of the taxes on this list is not relevant to you, you can remove it so to decrease the clutter in your tax rates when you are creating those billable items.
01:34 To deactivate the tax to remove it from your list, just click here on this actions, and select deactivate and confirm the action.
01:43 That's it! The tax will be removed from the list of active taxes, but it won't be deleted. We do this to preserve the historical record of your data.
01:54 If you were using this tax before, it will stay added to the invoices that you generated prior to this change.
02:03 If at any stage you need to start using this tax again, just click show in active button here at the top.
02:10 The inactive items in the Taxes List will be grayed out and you only need to click this cog again and select activate.
02:20 The tax rate will be added back to your list of taxes.
Setting Tax Usage on Invoice Template
After you've set up your taxes list, let us configure the invoice settings to show the taxes the way you need them.
02:33 To do that, let's go into the settings menu and here again in the billing section let's select invoices. To go into the invoice settings, here we have this specific setting, how to calculate tax.
02:49 And you have three options available. Price includes tax, price excludes tax, or no tax. And let me explain what each of these settings mean.
03:01 So if you choose price includes tax, the tax will be a part of the invoice's final amount. For example, if a service you are selling costs $100, then a 10% tax will be displayed as the part of a hundred, meaning the final amount will still show as 100.
03:24 If you select price excludes tax, by choosing this option the tax will be added on top of the invoices final amount.
03:32 So, for example, if your service, you are selling costs 100 and you add a 10% tax, then a 10-dollar search will be added to the invoice.
03:45 This means that the final amount will show up as 110. But if you select no tax, the tax will display as zero amount on your invoices.
03:56 Choose whichever setting you want and it will be applied to all invoices you create for your clients. Also here at the top, in the invoice and statement layout, don't forget to turn on the invoice title as a tax invoice.
04:13 Once you are happy with all the settings here on this page, just click save changes. Perfect, we are now ready to start adding taxes to our billable item templates.
Adding Taxes to Service, Product and Session Pack Templates
04:25 to do that let's go into the settings menu and in the billing section again let's select service products or session packs.
04:35 So these are the three categories of billable items that you can create and use in Zanda. The applying of taxes to all of them is a very similar process.
04:47 Let's have a look at the services for example. So here when you are creating a new service or editing an existing one You will be able to define the tax that will be applied to invoices generated by using this template So for example, let's click on this one and So this is the template for our service and in the tax category here Click into the drop-down and select the tax that will be applied to this service and save the changes If you already have invoices generated using this service template and the system will ask you to update the future data and invoices to keep all your records in order and
05:34 if you want to apply that click yes update future invoices. There you go. You added a tax to your service template.
05:42 The list of service items that you have in your Zanda account has this tax column which shows which tax is added to a template and if it's not added then you can fix that so that all your records are in order.
06:03 And you will do the same with other billable items such as your products. Again you will see that the tax for the product is added here, save that.
06:20 And also, you can do the same with your session packs. So, for example, here, let's select tax exempt and save that.
06:32 And again, update future invoices if necessary. So there you go. You added taxes to each item template that you will be using to generate invoices in Zanda.
Updating Tax Usage on Individual Invoices
06:46 And let's have a look at how this behaves on invoices. Let us create an invoice and see how the tax applied to the item line behaves itself on that appointment or on that invoice.
07:01 So let's create an appointment for our client and select a service pack or product to generate that invoice and save the changes.
Awesome now to have a look at the invoice edit page let's click on this pencil icon here on the appointment panel and we can see that the tax usage information is shown here and it applies as price includes tax that corresponds to our invoice template settings and here on the information on the item
07:34 you can see that the tax is applied in percentage and it's 10% and because tax Usages set up as price includes tax and the price is a hundred and the total is a hundred because tax is a part of price.
07:49 If you want to change that you can on an individual invoice. You can click this drop down and select one of the two other options that are available as price excludes tax and save that.
08:06 And you will see that in this case tax adds up on top of the price because that's the tax usage setting.
08:14 So you can do this, change this tax usage method on one individual invoice if it needs to be different from all the other invoices in your system.
08:25 And now let's click print just to see how it shows on the printed invoice. So here you will see in the item line.
08:34 So this is the tax-added GST. The total tax is also has its own separate line and then you'll see the invoice total including GST.
08:47 So this is the tax information that is shown in the invoice, According to the settings that you have added to your account.
Reporting on Taxes
To get an overview of the tax usage in your account and to analyze that information you can use Zanda Reports.
09:06 Let's go into the Reports section and select Financial Reports. Two reports available here show tax information. First of them is the invoices and payments report.
09:17 So use the filters that are available to narrow down the data. You want to be included into this report and then run it.
09:27 And here you will see the tax column available, this one. And it will show you also the total amount of tax added or generated on those invoices.
09:38 And you can export this report into a CSV or Excel file for further sorting or as a PDF or print it out.
09:48 Another report that is available is the sales report. Let's go into that. And here again use the filters to find the data that you need.
10:01 Click on report and again here you will see the tax column available here with a breakdown of taxes per each service that you sold and also the total amount of taxes.
10:17 This is all for now. I will see you another time.