Income

SALES/ACCOUNTS RECEIVABLE

There are different methods for determining the dollar amount of sales to be reported.

• All bank deposits will be reported as revenue from the business.
• Client will provide Income/Accounts Receivable balance.
• Client managed Accounts Receivable in the accounting software used for reporting purposes. Client must manage all aspects of Accounts Receivable including entering invoices, receiving/posting customer receipts, and entering deposits. The deposits must agree with the bank statement.

If there are reconciling differences between sales and bank deposits, the difference may be posted to a Suspense Account until they can be resolved. Please review this account monthly.

BANK DEPOSITS OTHER THAN SALES

It is important that you let us know if you are making deposits other than sales or revenue-related deposits. These could take the form of personal loans, bank loans, vendor rebates, tax refunds, etc. Please indicate this on one or more of the following: check stubs, sales sheets or the monthly checklist. We assume all unmarked deposits are revenue.

SALES TAX

Depending on your sales tax volume, you will be required to file monthly, quarterly or annually. We can file these for you if directed. Be aware that you may be required to collect and file sales tax in other states where you do business. For questions about your state’s sales tax, call the local number or visit the official website. Please also contact the other states regarding their sales tax collection policies. If you purchase products from out-of-state vendors and they do not charge you sales tax, you are required to file a use tax return with your state and remit tax on those purchases.