© Accounting & Bookkeeping Services, llc
no statute of limitation
Keep In mind sales tax has no statute of limitations. Due to
covid and the states sales tax revenue plummeting, they will
be looking at eCommerce audits for sales tax revenue sooner
rather than later.
If you do not collect sales tax as required, the state(s) will
complete their audits of your sales channel, then send you a
bill for what they calculate you owe. This bill will include late
fees, fines, panalties and interest from your first sale that met
their threshold into their state, then going forward for all your
nexus sales.
sales tax = different bank account
Make sure you place all the sales tax monies you’ve collected
into a separate bank account, do not mix these funds with
your general operating account.
These sales tax funds are trust funds with the individual states
and not your money to use or spend. Every penny must be
acocunted for on each states sales tax return filed then turned
over to the state.
sales tax license is required!
Make sure you obtain a sales tax license in hand first before
you start collecting sales tax for any state. Collecting without a
license is illegal, and can be fined accordingly.
you must collect sales tax!
When you sell online and ship to an address in a state that has
eCommerce sales tax collection laws, you are required to
collect sales tax on each sale made once you’ve met their
theshold.
We can complete a sales tax nexus analysis by sales channel
so you’ll know where you have nexus and in which states you’ll
need to register for a sales tax license. We can file your
application with the individual states as needed. Then file/pay
your sales tax return with each state based on your individual
filing requirements, either monthly, quarterly or yearly.
Blog
Accounting/bookkeeping
eCommerce accounting is complex and requires
a degree in Accounting and years of hands on
experience creating financials statements that
detail full inventory costs. Inventory valuation
including landed cost by sku is required to
calculate profitable pricing by product. All sales
channels should be accounted for by order and
payment channel then balanced monthly!
Kansas
The state of Kansas still has not voted on
changing the economic threshold from zero
to $100k.
Another very happy client!
This is what a great Accountant does for their
eCommerce clients. I’ve only been working with
this small company for about two months, but
she was abosluletey thrilled to receive this
letter from the Colorado Dept of Revenue!
This waiver was substantial!