Which activities can help check how sales tax is set up in a QuickBooks Desktop company?

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The activity of opening Preferences to check if "Do you charge sales tax?" is enabled is crucial when verifying the sales tax setup in a QuickBooks Desktop company. This setting determines whether the company will collect sales tax on transactions. If this preference is not enabled, the company would not be configured to charge sales tax, affecting compliance and financial accuracy.

Verifying this setting ensures that the business is following the appropriate sales tax regulations based on its geographic location and business model. It is an essential first step in understanding how sales tax is managed within the software.

While the other activities listed may provide additional insights into the sales tax setup—such as checking for sales tax agencies or sales tax items—the fundamental check begins at the preferences level, as this establishes the foundational ability to charge sales tax.

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