In: Accounting
1: Assume you have a new client that used excel for all his accounting records in the past. He wants you to set up a new QB company file. In addition to the lists of customer and vendor, he also provide a Trial Balance . How would you handle the trial balance in the new QB file?
2: Does company charge sales tax on services (like accounting or attorney fee) provided? how about merchandise inventory?
3: Check here for your local sales tax rate and share your experiences of dealing with sales tax
1. The total customer should be classified as "Accounts Receivable Control" that is a total of all the customers. In addition to this ON MEMORANDUM basis he should maintain a "Customer Ledger" with details which should be reconciled with the Control A/c at least every month, so that these tally. So what appeard in the Trial Balance is the Control A/c balance. The Customer Ledger list is prepared merely to reconcile
Similarly the total vendor should be classified as "Accounts Payable Control" that is a total of all the vendors. In addition to this ON MEMORANDUM basis he should maintain a "Vendor Ledger" with details which should be reconciled with the Control A/c at least every month, so that these tally. So what appeard in the Trial Balance is the Control A/c balance. The Vendor Ledger list is prepared merely to reconcile
2. Yes, certain states charge Sales Tax on services. Even on Inventory
3. If there is a nexus in a specific state then there is a sales tax from 1% to 10% on the particular service.
Most states collect sales taxes on products on services. Five states - Alaska, Delaware, Montana, New Hampshire, and Oregon - do not collect statewide sales taxes. Of these, Alaska and Montana allow localities to charge sales taxes
In 1930 when the government started charging sales tax they did so only on products ( tangible personal property) not services. But later in 2007 they did it on services also in B2B which were usually repealed