Tax Exempt status with accountancy software

After we imported all of our customer information from QuickBooks we began to notice mis-matches on Tax Exempt status. Unfortunately, our account from many years ago flagged customers as Taxable in Quickbooks, but then used a “0% - Exempt” tax table. We have noticed:

  • This “Exempt” tax table did not import over to Breww. Anyone who is marked as taxable defaults to the 7% tax table we need for the State of Indiana.

  • Most customers appear as Taxable in QuickBooks and the “Tax Exempt” box is not checked in Breww. But in some cases there are mis-matches, and all three of the other possible combinations have been found as we have been cleaning this up.

So two questions:

  1. Does Breww import Tax Exempt status from QuickBooks, and if yes, what are we doing wrong to have so many mis-matches?
  2. Is there are way to have customers be “Tax Exempt” by default when we create new ones in Breww?

Thanks,

Keith Wehmeyer
HopLore Brewing

Hi Keith, Thanks for your comment! The ‘Tax Exempt’ status in QuickBooks is not synced with Breww, so this would have to be manually set in Breww on the customer. However, customers in Breww are categorised by ‘Customer type’ (the customer type can be set on the Edit page of the customer). You can then determine this status for all customers within that customer type by heading to Customers → Settings & tools → Customer types. Provided this customer type is selected when creating the customer then the customer will be Tax exempt when created. I should also mention that this will mean that all these customers would be tax-exempt, and this cannot be overridden directly on the customer. Cheers!

Thanks Ben. Unfortunately this really doesn’t help us much during the customer import process from our accountancy process. Either we touch each customer to categorize their type, or we touch each customer and properly set their tax exempt status. I would suggest that in your “Getting Started” guide you include this step so that people understand this needs to be done as part of the onboarding process. Otherwise they will be creating invoices that may accidentally include sales tax or VAT.

Regards,

Keith

Hi Keith, thanks for your reply and your feedback. We can, of course, update the getting started guide so that what is and isn’t passed on from the downloading of customers from accountancy software is clearer. We will look into updating this soon. Let me know if you need anything else. Cheers!