How does everyone go about charging tax especially when you don't have a cash register.
I have worked my prices to include the sales tax, then at the end of the month I just figure it as close as I can, some months i lose a few pennies, other's I gain a few.
How does everyone go about charging tax especially when you don't have a cash register.
I don't have a cash register, and I add tax to each order, I use the calculator.
I deposit all my funds into the bank and at the end of the month I know exactly how much went in and I can figure the sales tax from looking at the months deposit record. Well my accountant actually figures it. ![]()
mpc
Thanks Guys,
That is pretty much what I had thought. What I thought about doing was say my cake was $40.00 and our tax is 8% (3.20) then I would charge my client $44.00 and just keep track of my tax. Does that sound right?
And by the way I had figured on using a calculator.
i live in pa and my health inspector said becasue i have an in home bakery, and don't sell individual products that i don't have to charge sales tax. he said if i was selling one cookies or one piece of cake that was different, but since it is a tray of cookies or a whole cake i don't need to. saves me a lot of work.
Thanks Guys,
That is pretty much what I had thought. What I thought about doing was say my cake was $40.00 and our tax is 8% (3.20) then I would charge my client $44.00 and just keep track of my tax. Does that sound right?
And by the way I had figured on using a calculator.
When you keep your own books, tho', you need to know how much of that price was sales and how much was sales tax. It's your sales number that you use as income for your business. You are just an agent collecting the sales tax for the govt ... it's a pass-thru transaction.
So don't record your sales as "$44.00" .... your actual sale is "40.80" (44.00 less 3.20)
Just charge the tax on the actual sale ($40.00) if you logged your sales into your books at $40.80 then you would owe sales tax on that extra $.80 which would be $.07. so your total sales tax on $40.80 would be $3.27.....???? am I confusing you???
It's just easier to charge your price and then the sales tax on the price of sale.
Thanks Sheila & Indydebi,
That was what I thought glad to know I was following the right line.
itmust vary from state to state because we were told we had to charge sales tax and i use a calculator too and incorporate it into the price
Just an FYI - There is no sales tax on one cookie or one piece of cake in PA, unless it is served in a restaurant, cafe, coffee shop, etc. If I were to open a bakery and sell individual slices for home consumption, there is no sales tax. I do not know if this applies to wedding cakes, as the bake shop I worked in did not sell them (the owners brought in products from New York City).
If you charge a flat $44 for the item, you would then be responsible for the tax on the entire $44, instead of $40, in an audit. That is why the sales tax line is always a sales tax line below the subtotal.
Theresa ![]()
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