Can you explain how we can set up (and the benefits) of Shopify Balance and Taxes?
Shopify Balance offers a feature that allows merchants to automatically set aside sales tax in a dedicated account to simplify tax management and improve cash flow. When enabled, Shopify automatically moves sales tax collected from Shopify Payments and Shop Pay Installments payouts to a separate Balance account, ensuring funds are available when it is time to remit them to tax authorities.
How to Set Up:
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Go to your Shopify Admin > Finance > Balance.
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Click Settings.
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Under the “Sales tax account” section, click Turn on.
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Follow the prompts to create or select a dedicated, separate Balance account for your taxes.
Ensure that once you do so, you update your tax filing provider to use this account for your remittances.
More information is available here