How Do YOU Keep Track Of Sales Tax? - Business - Contractor Talk

How Do YOU Keep Track Of Sales Tax?

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Old 05-08-2019, 09:10 PM   #1
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How Do YOU Keep Track Of Sales Tax?

I just got my California seller's permit. Working as a landscaper, I generally give the customer a bid price that includes all materials and labor. Just spoke with the CFTDA (just filed my first return with them) and they said there are two ways I can account for my re-sold purchases:

1) Don't mark anything up, just charge the same price you paid for it, but if you do this you MUST include copies of the original receipts when you invoice your clients.

2) Mark up whatever you want but keep all the markups on a spreadsheet and be sure to record the proper sales tax for the proper county that you're in.

Geez, these seem both like a lot of extra steps. I don't know how legit this info is that one person at the department gave me, who kinda seemed like he didn't know for sure.

What do you all do? What's the easiest way to do this? If option 1, it seems like you can just put any markup as labor and include a line on the invoice that "all materials were resold at cost", or something. Does anyone actually send receipts with customer invoices? Seems like most contractors probably don't share the actual cost of things with customers. But option 2 sounds like a headache. Do you set aside the state's percentage AND the county percentage?

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Old 05-08-2019, 09:17 PM   #2
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Re: How Do YOU Keep Track Of Sales Tax?

Glad we don't have a sales tax and have to mess with it.


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Old 05-11-2019, 05:51 PM   #3
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Re: How Do YOU Keep Track Of Sales Tax?

Quickbooks should keep track, I would think. Talk to a CPA and see if they will set it up for you.
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Old 05-20-2019, 11:37 PM   #4
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Re: How Do YOU Keep Track Of Sales Tax?

Don't give them a material price in your contract. Don't mark up your material just give them a price for operations.

In other words

Decking x amount s.f. ***.xx
Railing lineal feet ***.xx

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