A method and system for efficiently managing and submitting taxes by placing taxes that are collected from sales into separate, verifiable, one or more virtual banks accounts, before submitting the owed taxes to the appropriate government agencies. The user can specify the frequency of tax submission, such as weekly or monthly. The software system can distinguish taxable sales from non-taxable sales for sales tax, as well as apply other types of taxes, including use taxes, luxury taxes, value added taxes, fuel taxes, tobacco taxes, alcohol taxes, and the like. The software system can also be configured to set aside the required payroll taxes and garnishments for each employee based on entered input, such as hourly wages, number of hours worked, etc. After setting aside the payroll taxes into one or more virtual accounts, the taxes are sent to the appropriate government agencies.