While our team is working on enhancing sales tax tracking features, here’s a helpful workaround to keep you organized and prepared.
Step 1: Create an Invoice
Navigate to the Tracks tab in FarmRaise Tracks.
Scroll down to the Invoices section.
Click New Invoice to start fresh.
Select an existing customer or create a new one, then press Continue.
Enter the sales tax rate (e.g., 3%) applicable to the transaction.
Add the products the customer is ordering. FarmRaise Tracks will calculate the sales tax for you.
Save the invoice. You can now preview it as a PDF or send it directly to your customer.
Step 2: Mark the Invoice as Paid
Once the payment is received, open the invoice and click Mark as Paid.
Next, select Create a Revenue Transaction and press Save.
This step will record the payment and allow you to track sales tax separately.
Step 3: Split Revenue to Track Sales Tax
Open the revenue transaction for the invoice.
Click to Split Revenue into separate categories:
Category 1: Sales Tax
Enter the calculated sales tax amount (e.g., $146).
Create a custom category named Sales Tax.
Note: Do not include this in your Schedule F, as it represents funds you’ll remit to the state.
Category 2: Remaining Revenue
Enter the remaining balance after subtracting the sales tax (e.g., $50.16 - $1.46 = $48.70).
Label this with a category like Agricultural Sales or specify the product sold (e.g., "Ground Beef").
Save the transaction, ensuring it is tied to the correct account.
Step 4: Generate Sales Tax Reports
Go to the Reports section in FarmRaise Tracks.
Create a new report and:
Select All Accounts.
Filter by the Sales Tax category (uncheck other categories).
Adjust the date range to fit your needs (e.g., year-to-date or a custom range).
Generate the report to view all sales tax collected for the selected period.
Download the report for your records or use it to calculate what you owe to the state.
A Few Notes
This method helps you track sales tax as a separate category, ensuring it doesn’t appear as taxable farm income on your Schedule F.
While this workaround takes a few extra steps, it allows you to accurately account for sales tax until enhanced features are released.
Need Help?
If you have questions or need assistance:
Email us at [email protected].
Click the green chat bubble in the bottom-right corner of our website.
FarmRaise is here to make managing your farm’s finances simple and stress-free. Thank you for using Tracks to keep your operation running smoothly!