Sales Tax
If your business charges sales tax on invoices, Geekonomics tracks it as a liability and gives you a report of what you've collected versus what you've paid to the tax authority.
Setting Up Tax Rates
Go to Settings → Tax Rates (admin only). Click + Add Rate and enter a name (e.g. "WA State + Seattle"), the percentage, and an optional description. You can have as many rates as you need — different jurisdictions, different product categories, whatever maps to how you actually collect.
Inactive rates are kept for historical accuracy on old invoices but can't be selected on new ones.
Applying Tax to Invoices
On the invoice form, pick a tax rate from the dropdown. The subtotal × rate is added to the total and posted as a credit to Sales Tax Payable when the invoice is issued. If you leave the field blank, no tax is charged.
Tax follows the invoice through its lifecycle. Voiding a sent invoice reverses the original journal entry and clears the tax liability for that invoice.
Tax Liability Report
The Sales Tax Liability report at /reports/tax-liability shows three things:
- Your current Sales Tax Payable balance — what you owe right now.
- A per-rate breakdown over a chosen date range — invoice count, taxable subtotal, and tax collected for each rate.
- Recent collections and recent remittances side by side.
Pick the date range that matches your filing period (monthly, quarterly, annually — whatever your state requires).
Recording a Remittance
When you pay sales tax to the state, open the report and click Record Remittance. Enter the date, the bank account paying it, and the amount. Geekonomics posts a journal entry: debit Sales Tax Payable, credit the bank account. Your liability balance drops by the amount you paid.
Annual Settle-Up Checklist
At year end (or whatever cadence your state expects):
- Run the Sales Tax Liability report for the period.
- Cross-check the collected total against your state's filing form.
- File and pay through the state portal.
- Record the remittance in Geekonomics with the actual paid amount.
- Your Sales Tax Payable balance should sit at zero (or close, if a small portion is unfiled).
What's next
Reports — for a fuller tour of what's available.