Tracking taxes paid and accepted by a firm is very important for Canadian accounting. You can set up your CosmoLex software to start tracking these funds in a few simple steps.
- Go to Setup > Firm Settings > Regional Settings. This is where you will be able to turn on your Canada Specific Accounting Settings.
- When you click on the box next to Enable Canada Specific Account Rules option, a box will appear with a drop-down menu for you to select the province where your firm is located.
- Selecting the province will allow the software to determine if you need to only track HST or GST, or if you need to track GST along with PST or QST. Once you have selected your province, click on Apply Province Specific Settings to finalize.
- Next, a message will appear indicating the precise tax settings that have been applied based on your province. The settings you see below were stylized for the province of Ontario.
- Additionally, when the settings are finalized, the Tax Settings portion of your Financial Settings under Setup > Firm Settings will show the specific type of tax being applied and the current taxable rate. The below tax settings are also for a firm based in Ontario.
- If you select a province that tracks two types of taxes, those settings will also be reflected in your Financial Settings. The below example is a firm based in British Columbia.