Which categories go where on my taxes?

Seller Ledger takes a specific approach to accounting/bookkeeping when it comes to federal income taxes. We start with the tax form lines and create top-level categories for each of them. This becomes your default list of categories when you start using Seller Ledger to classify your business transactions.

You can see which categories roll up to your tax form by going to your annual Tax report and clicking on the description for any line:

In a handful of places, we have created multiple categories that roll up to a single tax line, as you can see above.

Another common question we get is where shipping costs show up. If you click on "Office Expense", you'll see Shipping Costs there, along with the IRS instructions.

While we don't allow you to change which tax lines the top-level categories roll up to, you can always create your own sub-categories and customize how certain types of transactions are classified when they are imported from online sales channels.