The Income by Taxable vs Non-Taxable Report in COUNT is an essential tool for business owners who need clear visibility into their revenue streams and tax liabilities. By distinguishing between taxable and non-taxable income on an account level, this report provides a comprehensive view that can help in tax planning, compliance, and financial analysis.
Accessing the Taxable vs Non-Taxable Income Report
To access this report:
Navigate to the Report section under the Financial Statements header.
Select Income by Taxable vs Non-Taxable from the options.
Key Filters and Options
The Taxable vs Non-Taxable Income Report includes several filter options to tailor the data to your needs:
Date Range: Set a specific timeframe (e.g., fiscal year 2024) or customize the start and end dates for a more targeted view.
Type: Choose between:
Accrual - This shows income based on invoices issued, regardless of whether the payment has been received.
Cash Basis - This reflects income based on cash actually received, which is useful for understanding cash flow and is often used for tax reporting by small businesses.
Account: Select a specific account to view only the income and tax details for that account, or choose "All Accounts" for a complete overview.
Currency: Display the report in the desired currency (e.g., USD), which is especially helpful for businesses dealing with multiple currencies.
Pro Tip: Use the Type filter to switch between Accrual and Cash Basis views. This can give you both a long-term view (Accrual) and a real-time cash flow view (Cash Basis) of your taxable and non-taxable income.
Hit the "Generate Report" button to view the report.
Report Layout and Insights
The report breaks down your income into Taxable Sales and Non-Taxable Sales at an account level, giving you a clear understanding of which income sources are subject to taxes.
In the report view, you’ll find:
Account Names - Categories like "Product Sales," "Consulting Income," "Donations," and "Earned Interest."
Taxable Sales - Income that is subject to taxes, making it easier to estimate tax liabilities.
Non-Taxable Sales - Income not subject to taxes, which could include donations or certain types of interest, depending on your business structure.
At the bottom of the report, COUNT calculates total taxable and non-taxable income, providing an at-a-glance summary that can be used for tax planning or financial reporting.
Pro Tip: If you’re planning for quarterly taxes, filter the Date Range to the current quarter to get an estimate of your taxable income so far. This can give you a heads-up on expected tax obligations and help you avoid any surprises.
Exporting Data for Further Analysis
The Taxable vs Non-Taxable Income Report can be exported in CSV format, allowing you to review it in other applications or share it with your accountant. The Export as CSV button is located at the top of the report, making it quick and easy to generate a downloadable file.
Pro Tip: Regularly exporting this report can help you maintain organized records for tax filing, making tax season less stressful. Additionally, you can use the exported data for deeper analysis, especially if you’re using external software for financial forecasting.
Benefits of the Taxable vs Non-Taxable Income Report
Clear Tax Planning: By distinguishing between taxable and non-taxable income, you gain a clearer understanding of your tax obligations.
Enhanced Financial Analysis: The report provides insights into different income sources, helping you identify profitable areas and those that require attention.
Simplified Reporting: Export options make it easy to integrate this data into tax preparation and financial reporting workflows, supporting smooth collaboration with your accountant or finance team.
Flexible Viewing Options: With customizable filters, you can adjust the view to see the data most relevant to your immediate needs.
Using the Income by Taxable vs Non-Taxable Report, you can keep a close watch on income streams and tax liabilities, supporting informed financial decisions and effective tax planning. By regularly accessing and exporting this report, you’re setting your business up for better financial health and compliance.