[amayausers] Re: Business Accounting
- From: "Lora Cameron" <Lcameron@xxxxxxxxxxxxxxxxx>
- To: <amayausers@xxxxxxxxxxxxx>
- Date: Fri, 21 Apr 2006 15:44:49 -0500
John,
To the best of my knowledge you pay sales tax on what you have billed, not on
what has been paid. If the customer pays after you have filed your tax, for
that month or quarter, and hands you tax exempt form you would take that tax
off the next period that is due. This is what we do in Wisconsin. You should
call your tax department and make sure, but I would bet the figure you get from
quick books is the one you pay whether the invoice is outstanding or not. It
is part of your total sales for that period therefore it is tax due.
Lora Cameron
Sport Products Mfd., Ltd.
4756 Murphy Road
Oregon, WI 53575
608=835-5791
www.sportproducts.org
----- Original Message -----
From: John Yaglenski
To: amayausers@xxxxxxxxxxxxx
Sent: Thursday, April 20, 2006 8:35 PM
Subject: [amayausers] Business Accounting
Heh... For those of you still reading after seeing the title, I need some
insight from this fine group :)
Which accounting method are you using for your embroidery business (cash or
accrual) & which program do you use to track your accounts.
I ask this as I was preparing our quarterly sales tax statement for
Maryland, and realized that try as I might, I couldn't get Quicken Deluxe
Home and Business to tell me how much sales tax I was actually paid this
past quarter. I could get it to spit out the amount of tax that was
INVOICED, but not the amount that had actually come in. Correct me if I am
wrong, but I believe the state only wants the money you actually have in
hand, no? Maybe a fellow Marylander can help with that.
Anyway, I emailed quicken and they said the reason I was having that issue
was because home and business only does things on an accrual basis.
Now, I know quickbooks does both. What do you do?
John
Accrual-basis accounting : An accounting system in which income is recorded
when it is earned, rather than when it is paid to you, and expenses are
recorded when you commit to an obligation, rather than when you pay it.
Cash-basis accounting: An accounting system in which income is recorded when
it is received, rather than when it is invoiced; and expenses are reported
when you pay them, rather than when you commit to an obligation.
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