The Essentials template works by providing a structured template for tracking sales and use tax information across different states and periods. 

Its layout is designed to be intuitive, allowing professionals to easily input data for consumer use tax, sales tax accrued, and payments made. 

The built-in functions automate calculations for discounts, adjustments, and the annual tax amounts paid, reducing the chance of manual errors and saving valuable time. 

The spreadsheet also includes features like reconciling balances, which helps professionals ensure all payments align with accrued taxes, providing a clear and accurate financial picture. 

This organized system not only simplifies tax management but also reduces the cognitive load, making the entire process more streamlined and efficient for sales and use tax professionals.