Use Microsoft Dynamics GP’s Tools to Keep Five Tax Areas in Order, and Conserve Cash

You may or may not believe it's patriotic to pay more taxes, but either way it's important to get them right. Paying too little generates free visits from taxing authorities. Paying too much causes CEO and shareholder heartburn.

In tough economic times, you can't afford to get your taxes wrong, since both fines and overpayments eat cash. Fortunately, Microsoft Dynamics GP provides a number of tools out of the box to help ease the tracking of five common areas of tax information.

1.       Sales Tax - Dynamics GP provides a robust Sales Tax framework out of the box, allowing users to set up tax details and combine them into a tax schedule. This enables you to combine taxes, like state, county, province, and local sales tax into a single tax schedule. The tax detail setup provides many options for what to base the sales tax on, how to round the result, and how to deal with maximums, minimums and whether tax is taxable. In addition, there are a large number of third-party options that provide even more advanced functionality, including automatic updates.

2.       Use Tax - While not separately addressed in the application, Dynamics GP's Sales Tax functionality can be leveraged for use tax as well. Calculations are done via taxes set up in Sales Tax, and GP's credit card payment functionality can be used to move the Use Tax off of a vendor invoice and on to a taxing authority liability.

3.       Tangible Personal Property Tax - Tangible Personal Property Tax can be a nightmare, since each city or county can have its ...