Setting up tax subcodes for your firm

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In addition to using the predefined tax codes in AdvanceFlow, you can define custom tax codes (tax subcodes) for firm-specific tasks. Example.

The Trial Balance for Client A (an 1120 client) includes several expense accounts for utilities and insurance. These expenses relate to tax code 213 (1120, Other deductions), but the client would like to be able to group these expenses as two items (utilities and insurance) for tax integration purposes.

Assigning these accounts to a single tax code (213) would yield unnecessary detail for both utilities and insurance in the Tax Code report. However, by assigning custom tax codes 213,1 - Utilities and 213,2 - Insurance, you can group all of the utilities expenses together as Utilities and all of the insurance expenses together as Insurance. In this way, you can provide the necessary summary information for these separate groupings within the Tax Code report.

If you have administrative permissions, you can follow these steps to set up tax subcodes.

  1. Click the Administration button in the navigation pane and then click the Tax Codes button.
  2. Click the appropriate tab for your tax vendor.
  3. Select an entity.
  4. In the left pane, click the tax code to which you will add a subcode.
  5. Click the Add Add button button.
  6. Enter the subcode and description in the provided fields and then click OK.

Note: To add, edit, or delete tax subcodes for a prior year, choose another year from the Tax Year drop-down list, select the desired tax code and subcode, and click the applicable buttons in the toolbar above the tax subcode pane.

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