Friday, December 20, 2019

4 Common Sales Tax Mistakes Business Owners Make And How To Avoid them.

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Photo by The New York Public Library on Unsplash

In life, few things are as certain as tax. It has become a permanent part of our everyday business life. There are different kinds of tax, like income, personal and sales tax.

Only a small number of people are exempted from the obligation and responsibility of paying tax. Not paying attention to this responsibility can cost your business much more in penalties.

Sales tax are constantly changing as all states now require companies that have nexus, or some kind of presence that triggers legal obligation, to collect and remit sales tax. This was after the Supreme Court determined in the wayfair nexus case that an out-of-state seller can have economic presence in a state where it has no physical presence, and can be held legally accountable for collecting tax.

While most established businesses have mastered the art of managing their sales taxes effectively, other businesses make some costly mistakes that come back to haunt them.

Effective management of sales taxes requires efficient planning. This is because the tax laws regulations are a little complicated as different laws apply to different jurisdictions.

The following are five common sale tax mistakes that business owners make. In this article, we shall discuss those mistakes and offer tips on how you can avoid them.

1.  Late or no Filing 

Many small businesses make the mistake of not knowing, or totally forgetting the time required to file their sales taxes.
Different states have different times for proper filing. In many states, the sales taxes must be filed on or before a particular date every month. In these states, failure to comply attracts stiff penalties. In other states, filings can be done after the required dates without penalties.
In those jurisdictions that insist on meeting deadlines, the penalty may be as much as 5% per month. Non-payment of filing will attract a higher percentage of penalties.
Therefore to avoid penalties and fines for late payment in filing sales taxes, small business owners should take note of the tax laws of the various jurisdictions where their businesses are located.  
Not Filing Where Products Are Sold

A sales tax by its name shows that it is a tax collected from the sale of a product. According to Wikipedia,
A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase.
Many small businesses do not avert their minds to the fact that they are liable to pay taxes everywhere their products and services are sold and not only in the place where their business is located
Accordingly, every business is required to calculate and file sales taxes in all the places where its products and services are sold. Many small businesses have fallen into this mistake and incurred avoidable penalties.
   Not Consulting A Tax Expert.

Many small businesses want to save costs by trying to personally manage most aspects of their business.
But filing and complying with the various tax laws and regimes can be complicated. If it is mismanaged, the consequences may see the end of the business.
Employing the services of a tax expert will ensure that you are never behind in filing your sales taxes thereby saving you much-needed cash in the long run.

 

Failing To Use An Updated Sales Tax Software.

 

Our memories as human beings are not reliable. We tend to forget deadlines, targets, and other details required to efficiently file sales taxes.

 

But thankfully there are sales tax software designed to help companies prepare and file tax returns as at when due.

 

Tax laws are always being reviewed, and so it is important to ensure that your software is up-to-date. Ensure that your app is updated to comply with the new regime.

 

Many business owners fail to update their software, and are shocked to find that they ended up filing the wrong tax. And of course, you know that wrong tax filing can attract fines and unpleasant penalties.

 

Conclusion:

 Every business owner wants to make profits at the end of the financial year. Avoiding fines and run-ins with the law can hinder you from accomplish your goal of growing your business.

 

To avoid these common sales tax mistakes, use hire a professional tax professional, use an up-to-date tax software and pay attention to the rules in your jurisdiction.


Tuesday, December 17, 2019

5 Ideas How to Show Character with Personal Style

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Choosing clothes and getting dressed is a part of our daily routine. But, have you ever asked yourself what are your clothes revealing about you? Usually, each clothing item we wear tells its personal story to the world.


Thursday, December 12, 2019

Did You Know That Titanium Rings are Perfect For Sensitive Skin?

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The Problem With Allergies

The most common in a woman’s world are allergies through jewelry. If we want our jewelry to not cause rashes and allergies on every surface it touches on our body then it is important to know which material you are allergic to. So that you can avoid buying that material altogether. Women often get stumped in this scenario i.e. what on earth should they wear then? If they are allergic to gold, silver, steel, and other metals then which type of jewelry metal can we actually wear without fear?

Friday, December 6, 2019

Things to do in Seattle: Exploring an Iconic Landmark and a Local Hub

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If you are searching for photo opportunities, then the gum wall and Rachel The Pig are perhaps the best places to be in the beautiful city of Seattle. But if you desire to do something different, then Pike Place Market can be your destination. After Space Needle, this busy market attracts both residents and tourists. From restaurants to coffee shops to quirky shops, this market center has many surprises for you in and around it.

Thursday, December 5, 2019

Things to Consider When Planning Your Perfect Wedding

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Planning a wedding can be a mind-wrecking task. The wedding will be the biggest event of your life and if things don’t go well, you might regret it your entire life. If you want to plan the big day yourself, try to make a schedule first. A wedding schedule will help you figure out everything you have to do before the wedding. Here are a few things that you should consider before making the schedule.

Monday, December 2, 2019

How To Choose The Perfect Wedding Photographer For You

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Choosing a photographer for your wedding day can be an overwhelming and daunting task. There are so many options to choose from, and things to consider, if you want to enjoy a magical experience on your big day, and have plenty of happy memories beautifully captured in the pages of your wedding photo books.

Tuesday, November 26, 2019

Winter Stroll Must-Haves for Twins

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Twins can be a significant problem for parents when it comes to taking them around. This can be a problem even if there aren't any twins. Instead, toddlers can continue sticking up with their stroller days. This can cause a major headache for parents, but it can be easily solved by getting a double stroller. This is a perfect solution for multi-child households since it provides a lot of conveniences.

Wednesday, November 20, 2019

Meeting Men or Women Online for a Fun Time

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There are three types of people who can be found on online dating sites – those that are looking for fun tonight, those that are looking for their soulmate, and those that are just curious about what these sites are all about and wanted to test the waters.

Wednesday, November 13, 2019

Romantic Getaways in Majorca

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Majorca houses a lot of interesting and fantastic places that you can visit for fun and entertainment. Majorca is spectacular with its golden beaches, idyllic coves, medieval Moorish architecture, and forests of pines and almond trees. This is a perfect spot for couples looking forward to immersing themselves in the ocean of their love without having to regret any moment. To learn more about Majorca, Protur Hotels got you covered. Here we have made a list of some spectacular places in Majorca that you can visit for during your romantic getaway.


6 Ways to Keep Your Relationship Alive

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Do you ever wonder why many relationships fail and only a handful survive a lifetime? If so, you might conclude few are destined to last. Ask any happy couple who have been together for decades though, and you'll discover the real reason people live happily ever after or break-up. Couples in long-standing partnerships know you must work to keep your relationship alive.