Sales Tax; 8 Important & Helpful Tips For Small Businesses

If you own a small business, then you know all too well it’s time to start preparing for tax season. Let us discuss 8 important and helpful tips for sales tax you need to know!

This is a sponsored post. All thoughts and opinions are 100% my own.

Sales Tax Compliance is complicated…

Luckily, you don’t have to navigate these waters alone. There are professional services for entrepreneurs who can help with sales tax filing. But here are 10 tips to keep you headed in the right direction…

1: Find Out If You’ve Created Nexus In A New State

You should regularly review the laws in each state you’ve conducted business with. If you discover you’ve created a nexus there, make note of it and follow the tax laws accordingly. This is pretty basic sales tax 101 info, but important to remember.

2: Check to see how states require filing

Some states where you do have a nexus will take electronic payments. Some, don’t have the capabilities. Make sure you know the correct way to file. If you have professionals helping, make sure you’re all on the same page.

3: Make sure all Dept. Of Revenue Checks Have Cleared

It might seem like overkill, but this is important if you don’t want any outstanding balances creeping up last minute. it’s worth going through all paperwork to ensure the Department of Revenue is all taken care of.

4: Make sure you know when to file

Sales tax filing periods vary and tend to update every so often. You usually get a notice when the frequency of filing changes, but sometimes these slip through the cracks. Be diligent, and maintain your own updated schedule.

5: Review your products taxable status

This is especially important when you have new products. You need to know if sales tax applies per existing and new states where you’ve created nexus.

6: Double-check notices!

Sometimes even when you’ve filed sales taxes and paid correctly, errors can happen in which you receive notices. These aren’t to be taken lightly and can result in penalties if ignored. Make sure any and all notices are addressed promptly!

7: Verify customer tax exemptions regularly

Have you changed your company name? Or, acquired a new company? You need to double-check your customers’ tax exemptions for accuracy or updates.

8: Make sure you’re audit-proof!

The worst thing any small business owner needs is to find out they are ill-prepared if audited. Make sure you have all necessary documents in proper order before you find yourself at the mercy of an auditor. This is where hiring a professional tax service can be of aid.

Stay Diligent About Your Taxes!

There are so many facets of running a small business. This is one that simply cannot be ignored. The incorrect filing and bookkeeping of sales tax can break an inexperienced business. Educate yourself and your team, and make sure you have everything in its proper order when it’s tax time. It never hurts to let the pros handle it either, so you can focus on other tasks to keep your business thriving!