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Handling Bills and Taxes in Canada

Learn to manage QBO tax codes, ensure your billing remains audit-ready and efficient, and accurately process bills (exclusive or inclusive of tax) that sync seamlessly to QuickBooks.

Benefits of Improved Canadian Bill Handling

🇨🇦 Aligns perfectly with Canadian accounting standards for taxes and billing

🔄 Ensures accurate sync of tax-inclusive and exclusive bills with QuickBooks Online (QBO)

🧾 Reduces manual data entry and tax calculation errors

🛠 Streamlines billing and tax remittance workflows for builders

Table of Contents

1. Canadian Bill Overview & Requirements
2. Connecting and Viewing QBO Tax Codes
3. Adjusting Tax Exclusivity & Inclusivity
4. How Tax Calculations Work
5. Reviewing Synced Bills and Invoices

Canadian Bill Overview & Requirements

Canadian bill handling updates ensure Ressio:

  • Pulls tax codes directly from QuickBooks,
  • Applies the correct tax rules to each bill,
  • Allows for seamless, accurate syncing to QuickBooks,
  • Ensures customer billings remain compliant and error-free.

‼️Canadian bill handling features only function if your company is in Canada, and connected to Quickbooks Online. You can verify this in Company Settings.

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Connecting and Viewing QBO Tax Codes

Bring in tax codes from Quickbooks Online:

  • Navigate to Company Settings → Cost Codes
  • Select View QBO tax codes to load tax codes directly from your QBO account.

What are QBO Tax Codes?

  • QBO uses tax codes (not just simple rates) for Canadian taxes, enabling combined/staged rates (e.g., HST, GST+PST)
  • Tax codes map to Canadian provincial regulations and allow accurate bill processing

Set a default QBO tax code for your company; this applies automatically when bills are marked as taxable.

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Adjusting Tax Exclusivity and Inclusivity

From anywhere you can create a Bill:

  1. Fill out standard bill details.
  2. Select “Amounts are” and set to either:
    - Exclusive of tax (tax is added on top of subtotal)
    - Inclusive of tax (subtotal already includes tax)

Example Entries:

  • Entering a bill for $1,000 as exclusive of tax applies the chosen tax code (e.g., HST Ontario at 13%), resulting in $1,130 total.
  • Set individual lines as taxable or not. All lines follow the bill’s tax inclusivity rule.
  • Inclusive bills prompt Ressio to reverse-calculate the pretax amount so totals match accounting requirements.

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How Tax Calculations Work

  • Exclusive of tax: Unit cost entered, tax code dictates extra tax amount on top.
  • Inclusive of tax: Total entered, Ressio calculates how much is tax and how much is pretax.
  • Sync pushes all details (tax code, inclusivity, pretax & tax split) over to QuickBooks Online. Rely on QBO for final tax figures, including rounding adjustments if any.

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Reviewing Synced Bills and Invoices

After bill approval:

  • The pretax number remains visible and functions as the reference for customer invoicing.

Upon review, bills in Ressio retain:

  • Inclusivity/exclusivity indicator,
  • Estimated tax (fed back from QuickBooks to handle rounding).

 

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If you have any questions or need further assistance, contact our support team at support@ressiosoftware.com. We're here to help!