Are you a sales tax expert? If not, then it’s time to educate yourself. You may be surprised by the sales tax that your state requires you to pay – and even more surprised by how much sales tax is owed on an individual purchase. Sales tax can really add up quickly! In this blog post, let’s see 5 tips shared by Taxconnex.com for filing your sales taxes as a small business owner so that you are compliant with the law and ready for any audits from your state government.
1. Gather Taxable Items
As you prepare for your upcoming sales tax filing, gather all the taxable items in one place so that it’s easier to properly label and total everything. This will save time during the process because once a vendor is selected on our online system, inputting information becomes less tedious as most of their requirements are already completed before submitting them into TurboTax Online or desktop version.
2. Easy Online Ways for Filing Sales Tax
Taxes can be complicated, but thankfully there are many resources available to help you file them correctly. Online filing is a popular option because it’s quick and easy; not to mention the convenience of knowing your return has been accepted as soon as completed! If this sounds like something you’re interested in, here’s some information on how online sales tax works:
3. File sales tax returns on time and correctly for peace of mind
The peace of mind that you get when you file your taxes on time is not comparable to the state of mind which you get when you are at the last day of filing deadline. Also did you know that filing your taxes on time is an act of patriotism? Nobody likes paying more than they have to, and missing a deadline just means giving the government money for nothing. But besides helping out Uncle Sam, being prompt will also save you from fines!
4. Keep sales taxes organized
Whether you are a owner or just someone who’s looking to get their personal finances in order, it can be difficult trying to keep up with all your tax information as well as maintain an organized filing cabinet for the rest of your paperwork. Keeping receipts and invoices filed away is one way that people stay on top of what they have coming back from state governments and local authorities every January; but if not properly sorted by category these documents quickly become unreadable piles at my feet. One time-saving tip I’ve found helpful when organizing old papers is using plastic document holders instead of folders because they are easier to search through without having everything spill out onto the floor!
5. Know what sales taxes you need to collect and file
It is important to understand each state’s individual sales tax rules. For example, in California you will have a different set of taxes than the ones that are established for Texas; there might be other differences as well depending on where your store is located and what it sells.
In order to prevent confusion about how much money needs collecting when making purchases at your brick-and-mortar establishment, learn which states require shoppers pay additional rates by allocating part or some amount of their purchase price towards paying these fees beforehand (most often through an itemized receipt).
6. Save time by filing online
The tax filing process is a painful chore for any business, but it doesn’t have to be! With online sales taxes and W2 reporting software, you can do your filings in the comfort of your own home.