Sales Tax Return filing for clients
As a bookkeeper can anyone tell me how they handle the responsibility of sales tax returns for their clients? I have a client whose retail store uses a software for their purchasing and retail business and I do the books out of QB. I run a sales tax report from the retail store side of things to get a monthly sales tax collected and pull out what is personal use and file the return as best I can. I'm feeling a little uncomfortable with the responsibility of filing these returns based on the information I'm getting from the reports as I don't work in that system. The owner of the business doesn't look at them and puts it on me to file. Any advice on how to make sure I'm filing these as accurate of possible and how to avoid the responsibility if they get audited and these returns end of having errors and penalties...please help. Thanks in advance. How do I cover myself from liability?? Thanks in advance! 🙂
In regards to the liability part - write an email to the owner explaining the issues you have and what you believe would be the best option in regards to making sure the taxes are filed correctly... that way you have it in writing. Maybe email the owner every once in a while as a "quick reminder"..
In regards to sales - for example the June sales have to mach the June deposits sales. Also, you need to take into account that there are deposits in transit, either cash or credit cards (DIT).. the sales from the 28th up to 31st will be deposited in the first 2-3 days of the following month. However, most of the time the deposits have to match the sales and that's a really good way to know if the sales tax you filed are correct. It would be very helpful to have the Merchant Credit Card statement that let's you know exact what was deposited, also the fees applied.
If they are not matching because of too many deposits or less - you definitely need to check with the owner.
Hope it helps!
Thanks so much for your input, appreciate you taking the time to respond!! Just trying to cover myself.