Why Use a Sales Tax Consultant? Not All CPAs Address Sales Tax!

by | Mar 18, 2022 | General Business, Mary's Wisdom, Stephanie's Wisdom | 0 comments

Some people wonder why they would need a sales tax consultant if they already have a CPA or a bookkeeper.  Here is the reason why. Sales and use tax is a specialized niche area. We like to compare it to being a specialist versus being a GP. While your book keeper or CPA may be helpful in myriads of other ways, sales and use tax compliance is not their speciality. (That is no shade to the CPAs and bookkeepers out here!).  We discuss it here.

Key Takeaways:

  • Sales tax is a specialized field.
  • Sales tax compliance is highly nuanced & can be complicated.
  • Sales tax compliance need to be re-evaluated when you expand your product or service offerings or into a different jurisdiction.
  • Talk to your CPA and bookkeeper about your concerns.

 

More Tips in The Sales Tax Sisters Academy

Our mission 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. Our focus is on empowering you with a framework and general understanding, so you know what questions to ask and where to go to get the information you need to stay on the right side of sales and use tax compliance.

Addressing Sales & Use Tax Credits

This tip is about what you can do when you discover that you have overpaid sales or use tax on the purchase that you make for your business. As we discussed in an earlier video, there are various sales and use tax exemptions available to purchasers for miscellaneous reasons.

Sales and Use Tax Compliance- Scanning Documents

This sales tax tip is about document retention. Specifically, making sure you have a plan in place when it comes to scanning your documents. We talk about it a lot because it is so important to have a good document retention policy in place, especially in a sales and use tax audit context.

Sales Tax and Bad Debt Write-Offs!

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.

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Top 4 Red Flags About Bad Clients!

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.   

Accounting Software Upgrades & Reluctant Staff

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.

Sales Tax Nexus- Am I Required to Collect Sales Tax?

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.

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Things to Do After Receiving a Sales Tax Audit Notice!

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! ...

Sales and Use Tax Audits- Don’t Forget the Credit Cards

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...
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The Marriage of Sales Tax Compliance & Clear, Concise Invoices

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.

Sales Tax Audits- Can the Auditor Do That?

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.

The Sales Tax Audit is Over! Now What?

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.

Top 5 Sales Tax Audit Gotchas!

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.

Top 5 Sales Tax Audit Documentation Mistakes!

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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