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12 Sales Tax Tips for Small Businesses © Avalara 2013
SALES TAXPAYABLECHECK CHECKS
Reconcile your sales tax payable account
Make time to reconcile your sales tax payableaccount with your source documents. Here arethe steps:1. Identiy the balance o your account at thebeginning o the accounting period.2. Add the total amount billed to customers.3. Subtract the total sales and use tax paid,either electronically or by check, beoretimely ling discount.4. Reconcile this amount with the currentbalance o your sales tax payable account.5. Re-class any discount or rounding balancesto the proper general ledger account.
Veriy that all checks you haveissued to the DOR have cleared the bank
While this may seem unnecessary, a misplacednotice rom the bank or the Department o Revenue might result in an outstanding salestax balance. Be sure to review your process orreceiving and sorting incoming documents,especially i you employ part-time sta. Doyou know what lurks in your stack o papersor ling cabinet?
(Beginning Account Balance)
(Sales Tax Bill Total)
(Total Sales and Use Tax Paid)Reconcile this amount withyour current sales tax payableaccount balance.
Update the ling requencieson your tax calendars
The beginning o the year is a great time to makesure you know how oten you’ll be required to leyour sales and use tax returns. Jurisdictions typicallysend notices to taxpayers several months in advanceo their ling requency changing, however i youdon’t receive a notice, that does not mean the newling requency doesn’t apply.