Business Hub

Tax Reconciliation

Tax reconciliation uses reverse tax to separate gross receipts into revenue, collected tax, fees, refunds, and payable balances. These pages are for bookkeeping, POS exports, audits, and marketplace payout checks.

Separate tax from gross receipts →

Bookkeeping and Audit Guides

Use these pages when reverse tax supports accounting records instead of a single receipt check.

Record workflow

How Reverse Tax Supports Reconciliation

Tax reconciliation uses reverse tax to separate gross receipts into revenue and collected tax before comparing those amounts with POS exports, marketplace payouts, bank deposits, refunds, fees, and payable accounts. It is a business-record workflow, not just a one-receipt calculation.

Gross receipts Gross totals may include revenue, collected tax, shipping, discounts, and refunds.
Payable account Collected tax should be tracked separately from business revenue.
Marketplace payouts Deposits often subtract fees and adjustments, so they are not clean tax-inclusive sale totals.

Reconcile the Tax Trail

  1. Start from source orders or receipts, not bank deposits alone.
  2. Separate tax from revenue with the correct rate and taxable base.
  3. Reconcile calculated tax with POS reports, marketplace reports, and payable account balances.

Bookkeeping and Payout Mistakes

  • Treating marketplace net payout as the sale total.
  • Recording collected sales tax as revenue.
  • Not documenting one-cent variances or manual adjustments.
Need the calculation now? Use the related calculator, then return to the guides for rate choice, receipt checks, and formula details.
Separate tax from gross receipts →