You can apply taxes to your client invoices at the firm, matter, and time/expense levels.
At the Firm Level
Applying your tax rates at the firm level will help prevent mistakes.
To apply firm-level tax settings:
- On the left navigation panel, click Setup.
- From the Setup panel, click Firm Settings.
- From the tabs atop the screen, click Financial.
- Complete the fields under Tax Settings:
|Default Matter Tax Status||
|Auto-calculate tax on payables/disbursements screens
|Enable an additional tax rate||
- In the upper right corner, click Save.
At the Matter Level
You can choose to handle taxable matters on a case-by-case basis.
To do so, you might only set a default tax rate for sales and/or service tax. Or, you might leave all firm level fields blank and handle tax at the matter level.
To manage tax settings at a matter level:
- From either the Add Matter (for new matters) or Edit Matter (for existing) screen, click Advanced Settings.
- From the tabs atop the Advanced Settings section, click Tax.
- From the Tax Status drop-down, select the appropriate status.
- If you applied tax rates at the firm level, those rates will apply. If you chose not to set a default tax rate at the firm level, or if this matter requires different rates than usual, then click Localized Tax Rate to apply special rates.
- Click Save.
Time and expense entries for this matter will be taxable. When you create an invoice for this matter, tax amounts will automatically be calculated.
At the Time/Expense Level
If you choose not to apply tax settings at the firm or matter levels, you can still apply them when entering a new time or expense card. This works well if you only wish to charge tax on certain items for a particular matter, rather than for all associated time/expense entries.
To manage tax settings when entering a time or expense card:
- From the Add Timecard/Expense Card or Edit Timecard/Expense Card screens, click Advanced Settings (for time and soft cost entries) or Tax Settings (for hard costs).
The Advanced or Tax Settings section opens and a series of tabs display.
- Click Tax.
- Check the box for Taxable.
- Enter in the percentage of tax you would like to include.
When you create an invoice for this matter, it will calculate tax amounts associated with the items you set as taxable.