The liability report exposes discrepancies between the totals in TrustFile for Accountants and your business application.
If you notice a discrepancy between gross sales and tax collected in TrustFile for Accountants and the gross sales and tax collected in your business application, use the liability report to find and resolve issues. See the Adjustments section below for more information.
If there aren't any discrepancies, File a Return.
Reconcile transaction data using the liability report
Export the TrustFile for Accountants liability report for a breakdown of the sales tax collected by jurisdiction, and then reconcile the transaction data in TrustFile for Accountants with data in your business application.
If you synchronize data from your business application to TrustFile for Accountants, when you edit or delete data in TrustFile for Accountants, the changes aren't communicated back to your business application. If the error exists in your business application, it may be easier to make the correction in your business application. In that case, the updated transaction is communicated to TrustFile for Accountants through the connector.
Export the liability report
To export a liability report:
- On the Companies page, choose a company for which you'd like to export a liability report.
- On the Current Returns page, click View Return under the return you'd like to export.
- Click View Jurisdiction Liability Report and:
- To export the liability report as a .csv file, click Export to .CSV, and then follow your browser's instructions to get the downloaded file.
- To see a description of each adjustment, click Advanced Adjustments.
- To review individual transactions, click View Return Transactions, review any transactions.
Troubleshoot data synchronized with TrustFile for Accountants
Depending on which business application you use, you may be able to import your transaction data into and synchronize it with TrustFile for Accountants, but TrustFile for Accountants doesn't send data back to your business application. To investigate differences in your totals, compare the raw data from your business application to the transactions in TrustFile for Accountants.
Choose an business application to see its specific troubleshooting instructions:
Verify the data transfer
Export a .csv file from your accounting software with all transactions for the date range you're filing for and confirm that the total gross sales and sales tax collected in the CSV are accurate.
- If they aren’t, you’ll need to troubleshoot the problem in your accounting software.
- If the data in the .csv is accurate, identify any differences between the transactions in the liability report in TrustFile for Accountants and those in the CSV you exported from your accounting software.
- Disregard any transactions with zero tax collected.
- If the Tax Collected or Gross Sales in TrustFile for Accountants is too low or too high, troubleshoot accordingly.
- If some transactions are flagged with errors or issues, confirm that none of these transactions include tax. If they do, edit the transaction to address the problem. Often, transactions are flagged as errors because the addresses are considered invalid by TrustFile for Accountants (usually because they're missing completely or are international or military base addresses).
When troubleshooting data issues, keep the following in mind:
- You may see a small difference between the Tax Collected and Tax Due amounts due to discounts, prepayments, and form-specific rounding.
- Transactions marked as errors are excluded and must be replaced or deleted.
- TrustFile for Accountants doesn't retroactively calculate how much tax you should collect for a transaction. Consider using Avalara AvaTax for sales-tax calculation at the time of the transaction.
- To see at a glance what your current sales tax liabilities are, on the Current Returns page, select the I've Already Filed This Return checkbox for the appropriate state to exclude it return from the displayed totals. (If you leave the checkbox selected, TrustFile for Accountants won't send any information to the state for that return.)
Occasionally, you see adjustments to your transaction data. TrustFile for Accountants assumes you collect the right amount of tax for transactions, and TrustFile for Accountants remits that amount to the appropriate authorities. If the tax amount collected doesn't match the sale amount for a transaction, TrustFile for Accountants adjusts the sale amount to match the tax that was collected.
As TrustFile for Accountants processes your data, it determines rates for the most common taxing scenarios: tangible personal property (TPP) and freight. Certain scenarios could cause your tax and sales amounts to be mismatched, for example:
- You made a non-taxable sale in a state where you're registered to collect and remit sales tax
- There was a sales tax holiday on the date of the sale and the product or service you sold was at a reduced sales tax rate
- The tax rates you used are different than what the state requires
Troubleshoot when tax collected or gross sales is too high
When you first upload data to TrustFile for Accountants, we assume you haven’t paid tax on the transactions you’ve uploaded, regardless of the transaction date. If your tax collected amount seems too high, you may have:
- Uploaded transactions for which you've already remitted the tax.
- Uploaded multiple instances of the same transaction (we don't check for duplicates). For example, syncing with your business application and then uploading a CSV from that business application could result in duplicate transactions in TrustFile for Accountants.
- Transactions that don't belong in the filing period. Check the date range of the transactions you uploaded to ensure that the first transaction date coincides with the first date of the filing period.
To edit or delete transactions in TrustFile for Accountants:
- Choose a company, and,on the Transactions page:
- To locate duplicate transactions in TrustFile for Accountants, click the Order ID column header. This sorts the transactions table by Order ID.
- To locate transactions in TrustFile for Accountants for which you've remitted sales tax, click the Status column header. This sorts the transactions table by Order ID.
- To locate transactions in TrustFile for Accountants outside the current filing period, click the Date column header. Transactions are sorted by date.
- To narrow down the list of transactions, click Advanced Filtering to select or clear filtering options.
- Review the list, select any transactions that shouldn't be included, and then, at the top of the transactions table:
- Click Edit to change the date and move the transaction to a different filing period. Remember that TrustFile for Accountants doesn't support filing returns before the current filing period.
- Click Delete to remove the transactions from TrustFile for Accountants.
Troubleshoot when tax collected or gross sales is too low
If the tax collected or gross sales amount seems too low, all necessary transactions may not be in TrustFile for Accountants or may have incorrect dates that cause them to be excluded from the filing period. Use the troubleshooting tips below for finding and filling in gaps in data.
Keep in mind that TrustFile for Accountants excludes transactions flagged with errors. You need to edit or delete the transactions to resolve the error.
To add or edit transactions:
- In TrustFile for Accountants, choose a company, and,on the Transactions page, click the Date column header. Transactions are sorted by date.
- Compare the transactions in TrustFile for Accountants with those in your business application to check whether all expected transactions are present.
- If you uploaded transactions using a CSV file, compare the transactions in TrustFile for Accountants to the original CSV file.
- If you synced transactions with your business application, download a CSV file from your accounting software and compare it with what's in TrustFile for Accountants.
- If transactions are missing:
Once all the numbers match what you expect, file your returns.