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QuickBooks Online In-line Tax Enhancement | FAQ

The QuickBooks Online integration with Clio Manage is available to subscribers of our North American Boutique, Elite, and Suite plans.

Customers in EMEA can find details on whether they are eligible for this integration here.

You can upgrade to the Boutique or Elite plan in the app, or give us a call at 1-888-858-2546 (option #2) for North America.

For any EMEA customers looking to upgrade their plans please call +44-800-433-2546. 

Overview

What is VAT (Value Added Tax)?

VAT is levied on most services provided by registered businesses in the UK and some services imported from outside the European Union. Law firms and registered businesses must pay over to HMRC the VAT they have charged on their goods or service (known as output tax) but they may offset this with the VAT they have incurred on goods or services they have purchased that relates to their own onward 'taxable' supplies (known as input tax).

 

Enhancements to QuickBooks Online Integration

What has been updated in QuickBooks Online tax settings?

We’ve added a third option to allow you to pass your primary or secondary tax ‘in-line’ with the corresponding line item. This reduces the manual work of having to input VAT taxes in QuickBooks online.

QBO_In-line_Tax_Enhancement_1.png

What were the previous QuickBooks Online tax settings?

Previously you had two options to pass tax to QuickBooks Online:

  • As a single, aggregated line item or
  • As an individual line item.

Why is Clio updating this feature?

Enhancing our existing integration with QuickBooks Online will enable you to leverage the full extent of Clio Manage. Previously, customers who rely on QuickBooks Online’s tax module had to manually adjust every single invoice in QuickBooks Online in order to keep the system accurate. With this enhancement you no longer need to manually adjust invoices in QuickBooks Online.

Can I continue to pass tax to QuickBooks Online as a single, aggregated line item or as individual line items?

Yes, you can continue to use the other two options.

What if I enable this feature and then apply primary and secondary tax to a bill or line item? 

There will be no impact to the Clio Manage bill or line item if you apply a primary and secondary tax after enabling this feature. However in this case QuickBooks Online will only detect the primary tax selection, ignoring secondary tax.

Example: If the line item subtotal was $10 USD with a 2% primary tax and a 1% secondary tax. The grand total of the line item in Clio would be $13 USD but the line item in QuickBooks Online would be $12 USD.

Why am I unable to edit the tax rate in my Bill Settings?

QuickBooks Online requires you to link tax to one of the values defined in their system. In order to ensure the rate is the same in both systems, we override the primary and secondary tax values in Bill Settings with the values specified in QuickBooks Online. This ensures that figures remain the same.

 

Support 

We encourage you to reach out to our support team if you have any issues connecting Clio Manage to QuickBooks Online. 

 

 

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