Sales & Use Tax Resources
Our mission is to provide a resource so business owners, accountants and bookkeepers can understand sales & use tax compliance.
We know that sales and use tax laws are not the easiest to understand.
Articles & Videos
In our discussion, we are focusing on bad debts and how they affect the sales and use tax that you report to the taxing authority. We also discuss the importance of documenting which bad debts were written off and how important it is in an audit context.
Over the course of my career I have regretted becoming engaged by select clients. I thought it would be good to share some of my experience dealing with difficult clients and the red flags that can help other small businesses identify them.
The effectiveness of an accounting software upgrade is underminded if your accounting staff refuses to use it. You must manage your expectations and help your staff wrap their heads around the new technology in order to make the most of your oftentimes expensive upgrade.
A few years ago, the Wayfair case was everywhere. It changed the landscape regarding sales tax nexus and registration requirements for remote sellers all across the country. Let’s talk about what the case may mean for you and your business. For some people, it means very little. For other people, the world exploded.
Nothing can kill a sugar or caffeine buzz quicker than a sales tax audit notice, right? Not so fast! The worst thing you can do is panic or allow a sales and use tax audit notice to color your day. You've got this!!...You do! Take a deep breath and DO NOT PANIC! ...
When you first receive notification that your business is going to audited for sales and use tax compliance, there are a number of areas of concern they may occur to you. One thing that business owners routinely overlook is company credit cards and how they can...
Sales and use tax compliance is a complex thing. Knowing whether you must register in a jurisdiction (i.e., do you have nexus), whether what you sell is taxable, what tax rate you should charge, the applicable sales tax exemptions, etc. can be a lot to digest when you are starting your business. One thing that all business owners can do to make their lives easier is have clear and concise invoices.
Once you involved in an audit, you must understand that the taxing authority has broad powers as it relates to what documents they can request. If a state tax auditor requests data, you should produce it. If you don’t, there are consequences that are very unpleasant. Find out how much power the auditor has and how to navigate the process.
Congratulations! You have survived your sales tax audit. While you can breathe a sigh of relief, don’t think that the tax authority is through with you because the audit is over.
Depending on the sales tax audit results, (i.e how much money your company owed in sales and use tax), you may be audited again.
Sales and use tax is a specialized niche area. While your book keeper or CPA may be helpful in myriads of other ways, sales and use tax compliance is not their speciality. You may need to consider another resource, like a sales tax consultant.
Here we discuss about five things you can do to make your audit go smoother. Four of the five tips are things to do when you set up your accounting practices and systems.
The key to all audits is documentation. You must prove what you do, that you collected the correct amount of sales tax, all sales tax collected was remitted, etc.
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