Do this the correct way.
Get quickbooks or another software package like this. Set up your business "corretly" send out invoices, collect payments, (including sales tax). Sent collected sales tax to state.
If you go through a sales tax audit your #'s need to match there #'s and there #'s come from you. When they go back 5 years and want to see how you arrived at your gross sales reciepts and taxable sales reciepts do you think you can remember how you arrived at those #'s--NOPE but if you are detailed about placing things into quickbooks (etc) the computer can do the remembering for you.
I went through a sales tax audit in July. They went back 5 years. All my #'s were perfect. In the end I was owed 1800.00 I charged sales tax for items that didnt need to be charged. I try to error on the side of caution I guess.
Start doing all this now ---OH and go get intouch with a cpa a good one will help you with all of this.
No disrespct---but quite trying to " just get buy" till whenever for whatever reason. If you ever get audited---even if your business goes out of business you will be happy knowing that its all properly paid, classified, and written down.
Last edited by zimmatic; 03-25-2011 at 08:39 AM.