PDA

View Full Version : Issues with remitting sales tax to the state


mark123
04-18-2012, 06:43 AM
Due to the nature of the way we do business and the way that people take their time to pay for services I run my sales tax reports using the "Generate Reports Based On: Date Paid" option. The problem is that when someone pre-pays in February for the whole year and I do services in March it changes February's reports because it was paid in February. This is really messing up my numbers.

Any idea how to handle this?

jymie
04-18-2012, 06:52 AM
Would changing them to free cut with a $0 chg instead of how much the cut is for the rest of the year make a difference?

mark123
04-18-2012, 06:55 AM
Would changing them to free cut with a $0 chg instead of how much the cut is for the rest of the year make a difference?
Well, then it wouldn't deduct the amounts of the services from the amounts prepaid.

I'm probably just going to switch to "Generate Reports Based On: Invoice Date" but that means I paid too much tax already for January and February. It may have been a mistake to use the "payment date" option but I did it because I just didn't have the money to pay tax on services that I hadn't got paid for yet.

Steve
04-18-2012, 03:39 PM
How does your state handle the sales tax. Do you have to pay sales tax on all invoices between a specific date whether you were paid for them or not?

mark123
04-18-2012, 04:22 PM
How does your state handle the sales tax. Do you have to pay sales tax on all invoices between a specific date whether you were paid for them or not?
Hmm. I guess I assumed that it was the same as retail sales where tax is collected at time of payment. I suppose I should look into that.

mark123
04-18-2012, 07:09 PM
Moving to "Generate Reports Based On: Invoice Date" makes a whole lot more sense as it won't have any of the issues I'm having now. That means I've paid too much sales tax so far but it should work out. I'm meeting with a CPA next Saturday to work out all the details.