Hey studio owners, it’s Donna Bordeaux with PYOPAccounting.com . I want to make sure that you have your records in really good shape. If you’re ever audited from a sales tax perspective, sales tax audits can be a real bummer. They’re not fun. And typically it’s a fishing expedition. They’re looking for ways that they can raise money from your studio and find problems. So if we want to help anticipate where they will find problems and help alleviate those problems, I’m going to give you a couple of tips first off, make sure that you have researched sales tax thoroughly. If you haven’t done it in a long time, or if you’re not sure you’re doing some things right. Do check it out. The problem with sales taxes, if you don’t collect it in your later found to be liable for it, guess who’s on the hook you are when you really should have been collecting those, that sales tax from your customers all along.
So we don’t want you to take the extra hit. Secondly, make sure that your point of sale system is complete. And when I say complete, what I mean is when a sales tax auditor is looking, you want to be able to give them one report to look at. We don’t want to have data scattered all over because that will again, send them out on the fishing expedition to try to find more things. If there is an audit, we want them in and out. We don’t want to mess around and carry this thing around with us for a long time. So we want your records in your point of sale system to match up to the same numbers, they will find on those sales tax returns that you are filing each month or quarter. So if you’re using an outside system like occasion or playful, or if you have a mobile sales from doing outside events, please make sure that you are inputting that information into your primary system.
At least once a month, to capture that information all in one place. We don’t want them digging through multiple systems to try to find out if you’ve done something right or wrong. Also, we don’t want you to forget, you know, if you’ve got sales over in place, well that aren’t in your point of sale. You also can’t analyze your sales effectively to see what’s selling or not. And if you’re keeping up with inventory, that can be another problem. You really want to make sure that all sales are entered into your primary point of sale system in one way or another. If you need some help with this, we set up systems all the time to help people get nice, easy ways to record this and make sure it’s effective. So let’s talk and we’ll see what we can do to help you have a smooth process and protect yourself in case of a sales tax audit. I’m Donna Bordeaux with PYOPAccounting.com. Please remember to subscribe to our blog here, and you’ll be kept aware of any new videos that come out and they’ll also be included on our blog at PYOPAccounting.com/blog. Thank you. Have a great day.
Donna Bordeaux, CPA with PYOPAccounting.com.
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna Bordeaux and PYOP Accounting.com. Donna and her husband, Chad, who is also a CPA, have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help PYOP studios earn 4 times more profit than the average PYOP and are passionate about helping industries that help families build great memories.
