About
The Year-end Hub includes a Sales Tax task under Other Items in your checklist.
This task helps you review your sales tax liability balance in Finaloop to ensure everything matches your records and is accurate for your tax return.
This guide will walk you through how your sales tax liability is calculated in Finaloop and how to verify your balance as part of the year-end process.
1. How Finaloop calculates sales tax
Integrated sales channels
Finaloop automatically syncs sales tax data from these platforms:
Shopify
Amazon
TikTok Shop
Etsy
Walmart
eBay
PayPal invoices
Stripe invoices
Here's how we calculate and reconcile your Sales tax liability on your Balance Sheet for these integrated sales channels:
We sync sales tax collected from your customers through your integrated platforms and add these amounts to your existing Sales tax liability balance (if relevant).
We track any sales tax remitted directly to tax authorities by the integrated sales channels (for example, Amazon, TikTok Shop or other marketplaces). This amount is reduced from your Sales tax liability balance. The result is what we refer to as Net Sales Tax Collected.
When you categorize a bank or card transaction as a sales tax payment, the Sales tax liability balance decreases, so you can keep track of the amount you still owe.
So to sum it up:
Sales tax liability in Finaloop = Opening balance on Jan 1 + Net Sales Tax Collected - sales tax payments from your bank or credit card transactions
Non-integrated sales channels
For sales channels not integrated with Finaloop (for example, BigCommerce or WooCommerce), the sales tax you owe from these channels won't be automatically included in your Sales tax liability balance in Finaloop. To update this, you'll need to:
Check the Net Sales Tax Collected in your sales platform reports.
Add this amount to the balance Finaloop shows, and report the total in the Sales Tax task of the Year-end Hub (see section 2).
2. Verifying your year-end sales tax balance
In the Year-end Hub, under Complete your checklist, open Other Items and then Sales Tax. We'll ask you to review and confirm your sales tax liability, shown as Closing balance as of the last day of your fiscal year.
If the balance matches your records, click Mark as completed. If the balance we show you looks different than expected, we'll need you to update the number.
Why would the balance be different than expected?
If this happens, don't worry. Data is auto-synced from integrated channels like: Shopify, Amazon, TikTok Shop, Etsy, Walmart, eBay, PayPal Invoices and Stripe Invoices, but other channels may not be included.
Since there are certain channels that may not be automatically synced, it just means we need a quick update from you. Click Report a different balance and enter your full closing balance in Your closing balance input, including the sales tax collected from the non-integrated channels.
Important: The number you enter replaces the balance Finaloop shows; it isn't added on top of it. Enter the total you owe as of the end of the year, not only the amount from non-integrated channels.
① Closing balance ② Report a different balance
Not sure what the balance should be?
If you have no historical sales tax debt and you remit payments monthly, your liability is typically your January remittance, covering December sales.
To confirm this, you can compare your Finaloop balance to your external sales tax records, such as:
Your internal tracking records,
Your CPA's records (if they're managing your sales tax), or
External sales tax filing software (for example, TaxJar, Zamp, Numeral, Avalara) if you are using one.
If you report a different balance, our accounting team will review your input and make the necessary adjustments. (Please note: updates will not appear immediately in your balance.)
Note: To change or remove a balance you reported, click Edit or Remove under it. After you submit your checklist, click Undo at the bottom of the page to make changes.
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Need help?
If you have any questions or need assistance, reach out to us at [email protected]. We're here to help make the process as smooth as possible!