Sales Tax Accounting Chicago
The Department of Revenue is in essence your silent business partner. They hold a share in your business worth the sales tax rate. Their contribution to your business is the ability to do business in their state. For this reason, you are collecting sales tax on their behalf, which is normally 40% of the state’s revenue in a given year.
How is sales tax accounting any different than filing an individual income tax return or a corporate tax return?
- Not all sales are taxable, whereas all income is taxable.
- Your business location will not alone trigger a sales tax liability
- You are holding money in escrow for the government, not paying a part of the money as a tax after it has been earned.
These are just a few basic differences in sales tax obligations versus income tax obligations. Factors in considering whether to hire a sales tax accounting firm include:
- Nexus
- Selling services in conjunction with sales
- Having business locations in different counties with differing sales tax rates
- Selling at retail and wholesale
- Selling high tax and low or no tax items
Having managed hundreds of sales tax audits, our firm has seen what improper book keeping and sales tax collection and reporting can do to a business. For this reason, we offer sales tax bookkeeping on an ongoing basis for our clients. We are well versed in sales and use tax law which helps us keep our clients up to date with changes in the law as well as their obligations for monthly reporting.
Call us to get your company going in the right direction.
Sales Tax Accounting Chicago
