Invoice / Collecting for Tax!

Discussion in 'Business Operations' started by alpine692003, Dec 15, 2003.

  1. alpine692003

    alpine692003 LawnSite Bronze Member
    Posts: 1,502

    Uhm, this may sound really dumb but I can't find this topic or similiar in the "search button"

    when you go collect money from your customer ie)$35, do you write them an invoice from your receipt book for $35 and give to your customer?

    Of that $35, do you charge them sales tax separately or is that tax included in the $35 and you pay?
     
  2. Evan528

    Evan528 LawnSite Silver Member
    Posts: 2,144

    In PA you must list the sales tax seperatly on the invoice. In PA, some services are taxible and some are not. If you ever get audited and dont have record on what you charged tax on and what you didnt they will force you to pay in on 6% of your entire gross.
     
  3. alpine692003

    alpine692003 LawnSite Bronze Member
    Posts: 1,502

    i'm still new, so I dont quite understand..

    You hand the customer the $35 bill for a lawn care job.

    OF that $35 YOU are paying the % tax within your city, mine is 7 so I am paying 7% tax.

    Is that 7% INCLUDED in that $35 or is it going to be

    1) $35 x .07 = $37.45
    2) $32.50 x .07 = $35 or something similiar to it!

    Get what i'm going at?
     
  4. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    That would depend on what you charged if it was $35 then you add your tax. Or did you charge $32.50 added the tax and told them $35.00 All of my contracts say____________ plus tax

    Mac
     
  5. Evan528

    Evan528 LawnSite Silver Member
    Posts: 2,144

    If you are charging 35 per mow you would list it on the invoice as follows,

    Mowing 12/5/03- $35.00

    Mowing 12/12/03- $35.00
    -----------------------------------
    sub total - $70.00
    sales tax (7%)- $4.90
    Total due- $74.90
     
  6. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,849

    its up to you which way you want it, but you still have to collect it (whether its in your price, or you tack it on) and mail it to the tax collector.
     
  7. alpine692003

    alpine692003 LawnSite Bronze Member
    Posts: 1,502

    THERE, YOU GUYS answered it! Thank you

    $35 - lawn job

    subtotal = $35
    tax - 7% = $35 + 2.45
    total = $37.45

    The total is the amount I would collect, okay! I get it now!

    THANK YOU GUYS!
     
  8. alpine692003

    alpine692003 LawnSite Bronze Member
    Posts: 1,502

    Another thing, how did you guys bill your customers?

    Did you use a computer software to print out a single freaking invoice paper or did you just write them an invoice in one of those receipt books?
     
  9. randy2625

    randy2625 LawnSite Member
    Posts: 114

    i use groundskeeper lite
     
  10. MudslinginFX4

    MudslinginFX4 LawnSite Bronze Member
    Posts: 1,170

    I have groundskeeper, looking into getting gopher
     

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