Collecting Sales Tax on Additional Charges
Question: How can I find out if I have to collect sales taxes on additional charges, such as screen charges and freight?
Answer: Contact your CPA or the department of revenue for your state, because sales tax varies by state—and sometimes by county. It is most likely that these extra charges are subject to sales tax, but that is not always the case.
Check your settings for taxable and non-taxable items and correct them if necessary. This is one of the first areas that would be examined if you are audited.
QuickBooks Premier and Enterprise can be modified to better serve ad specialty distributors. Harriet Gatter is a QuickBooks ProAdvisor, a former accounting professor and a former ad specialty distributor. She advises ad specialty distributors to use QuickBooks Premier and Enterprise, often in conjunction with other industry-specific software, to manage the complexities of the ad specialty business, with the results being time saved, errors eliminated and an overall accurate accounting of your business on www.accountingsupportllc.com. Please email accounting questions you would like considered for the column to HGatter@accountingsupportllc.com with the subject line "Ask the Accountant".