ForumsTaxes and Payroll

Yes, Sales tax rolls around every 3 months in New York. As you know sales tax is NOT income.
You collect the tax and then pay it to the State. Do you have an Accountant?? Are your books on
a business program like quickbooks or a spreadsheet. As you know I am a quickbooks consultant and
quickbooks does NOT show sales tax as income. It gets posted to the sales tax liability.
To me, it would seem like more work to move the sales taxmoney to a special bank account whenever.
BUT everybody is different. Do what gives you the best picture.
LUCKIEST

Visual learners that are not accountants LOOK at things differently, thats the key to the original question. Being able to LOOK in one place and immediately have the information DESIRED at that time. Its very strange because visual learners have to relearn things when keeping books and these things are not always easy. Trust me..I am a visual learner. and I am NOT an accountant. When I first got started with Quickbooks I would sit at my computer and cry! I drove my accountant nuts with the questions...what was easy for him...was convoluted for me.

I have been audited by the Texas Workforce Commission just because they wanted to not because of then way I kept my books. As a matter of fact...they were very impresed with the record keeping.

DomainDiva you are absolutly correct!! I look at my bank account and see money but I know that it isn't all mine because some of it goes for sales tax and other expenses. I understand all the accounting aspects of sales tax.
Mostly my question was do people set aside cash in a seperate account to pay sales tax. They know the money will be there when it's time to pay the taxes and they will also have a better idea of how much money is actually "theirs".
Thanks for all the answers!!!

Sales tax is paid seperately. I keep it in my business account. Every three months it is taken out and submitted to the for payment. It's easier to keep it seperate and pay it frequently rather then take a chance of it adding up or not getting paid at all. My accountant helps keep it all seperated and properly maintened.