Effective tax management is important for accurate billing and compliance. Taxes impact the total amount billed to clients and ensure that all regulations are followed. Gorelo provides robust tax management features, ensuring that taxes are accurately applied and synchronized with your accounting systems.
Tax management without Integration
When there is no Integration present in your MSP then you may manage taxes in Gorelo from Settings > Billing > Invoice Settings. Here you can see the list of taxes that will be added by you.
Add Tax
To add a new tax, click the "➕ Tax" button.
A popup will appear. Provide the tax details.
Click the "Save" button.
The added tax will be displayed in the list.
Update Tax
To make changes in the existing tax, click on the 🖋 pencil icon present with a tax.
A popup will appear, make your changes ad click "Save" button.
Note: New tax changes will only affect new invoices and contracts; existing ones remain unchanged.
Delete Tax
To delete a tax, click on the bin icon next to the tax.
Once the tax is deleted, it will also be removed from any product, bundle, invoice, or contract where it was in use.
Default Tax
To mark a tax as default, click on the default button next to the tax.
Once the default tax is set, it will be automatically selected in the field whenever you add a new product or bundle.
When a product or bundle with no tax code is added to a contract or invoice, the default tax will be automatically selected in the field.
Tax management with Integration
When integrated with Xero or QuickBooks, Gorelo's tax management system changes significantly:
Data Import: Tax data is imported from Xero and QuickBooks. Taxes in these accounting platforms are configured based on their geographical region.
Read-Only Mode: Gorelo adopts a read-only mode for tax codes. In Settings > Billing > Invoice Settings, tax codes can be viewed but not modified.
Tax Code Changes: Any changes to tax codes must be made within Xero or QuickBooks.
Synchronization: Clicking on a "🔃Sync" button in Gorelo allows users to update tax information seamlessly between Gorelo and their accounting software.
Note: New tax changes will only affect new invoices and contracts; existing ones remain unchanged.
Incorporating Taxes in Products and Bundles
Once the taxes are set up in your MSP, with or without integration, you can incorporate these taxes into bundles and products.
When creating a product or bundle, you can select a tax code. You may also change tax codes in existing products or bundles.
Products
Bundles
Mapping products and bundles with taxes will help you bill your customers accurately in invoices and contracts.
Application of Taxes in Invoices and Contracts
Taxes incorporated with products and bundles are applied in invoices and contracts. When you add a product or bundle to an invoice or contract, the tax code set for that product or bundle will be fetched, and the amount will be calculated according to the tax rate.
Invoice
Contract
If the added product or bundle does not have a tax code set, the system will fetch the default tax code of your MSP. If neither the product/bundle nor the default code for the MSP has a tax code set, the tax code field will remain blank, allowing the user to choose a tax code manually..
Once the tax code is fetched and applied, you still have the flexibility to change it contracts and invoices if you wish.