The two places small-business books most often go wrong
Payroll and sales tax are where we find the most problems when we open up a new client's QuickBooks file. Not because owners are careless, but because both involve money that passes through your business on its way to someone else — and that's easy to record wrong.
Payroll. Whatever payroll provider you use, the payroll itself has to land in your books correctly: gross wages, employer taxes, withholdings, benefits and the liabilities that sit on your balance sheet until they're paid. When payroll is recorded as a single lump-sum expense, your profit and loss is wrong and your liabilities never tie out. We record the journal entries properly, track the liabilities and reconcile them every month.
Sales tax. In Texas, sales tax you collect belongs to the state until you remit it to the Comptroller. We track what you've collected, prepare returns and file them on schedule. If you sell online into other states, we'll help you keep track of where you've collected and filed.
- Payroll journal entries recorded from your provider's reports
- Payroll liabilities tracked and reconciled monthly
- Texas sales tax prepared and filed on schedule
- Sales tax collected tracked as a liability, not income
- Multi-state sales tax tracking for online sellers
- Coordination with your CPA at year end
