[phill]

This is my second year now doing sales taxes. I always get confused at how to do it all. It is frustrating and frankly scary. Is there a free way of getting rid of the anxiety? How much does an accountant charge, and do they help?

I try to research things online and the states website is terrible! When they try to explain things it gets harder and harder to understand what they are saying. I didn't know that submitting sales tax was separate from income tax stuff until it was way too late and i submitted them both in april. i was overdue on sales taxes by two months! and then i dont even know if i am supposed to do sales taxes quarterly or monthly or yearly? and there seems to be no real help online that i have found. i hate taxes.

[trina]

phill, on 06 January 2012 - 11:24 PM, said:

This is my second year now doing sales taxes. I always get confused at how to do it all. It is frustrating and frankly scary. Is there a free way of getting rid of the anxiety? How much does an accountant charge, and do they help?

I try to research things online and the states website is terrible! When they try to explain things it gets harder and harder to understand what they are saying. I didn't know that submitting sales tax was separate from income tax stuff until it was way too late and i submitted them both in april. i was overdue on sales taxes by two months! and then i dont even know if i am supposed to do sales taxes quarterly or monthly or yearly? and there seems to be no real help online that i have found. i hate taxes.

Hi there,


I definately use an accountant. So worth it in many ways. Not only in the tax department, but if forces me to keep records of everything it do, so at the end of the year I know exactly where i stand. Plus where i live, as an artist, you get certain tax advantages, which I would never have found out about without professional help. My advice is go and see someone and find out what it will cost and see if that amount is worth not having sleepless nights worrying about your business. Trina

[Chris Campbell]

Get an accountant. Find someone you could pay by the hour to explain basics to you and get you started on a simple system like quick books. It's sometimes easier to understand bookkeeping when you are not hyperventilating.

[GEP]

I wouldn't dream of working without my accountant! He bills me $575 once a year when he prepares my fed and state income tax returns. For that fee, I can call/email him throughout the year, and he answers questions for free. Like trina, I like that he forces me to keep good records, that is invaluable in many ways.

Maybe this will resonate with your current feelings, I never feel stressed out about tax codes! I know I don't have to know everything, because the correct answers are just a phone call away. And, my accountant taught me early on not to be afraid of the IRS. They are not scary "men in black" agents. They are regular folks, overworked civil servants, not enough manpower to catch up to the serious frauds who are trying to cheat on their taxes. If you are a legitimate small business, trying hard to file honest tax returns, you have nothing to worry about.

Income taxes and sales taxes are two separate things. My accountant does not file my sales taxes, I do that myself. Though as I recall, this is another thing my accountant taught me early on ... how to get a sales tax licence and how to file these returns. It's really simple! But like Ive said before about running a small business, its not hard but it pays to have someone show you how. I file my sales tax twice a year, I think twice a year would make sense for any pottery business.

As for free ways to ease your anxiety, go to SBA.gov (Small Business Administration). They give free classes on filing a Schedule C, which is basically the heart and soul of small business taxes. I think the class I took years ago was called "Income Tax Filing for Sole Proprietors" or something like that.

Mea

[phill]

haha so an obvious yes to getting an accountant. i dont think i can afford a $500 accountant right now though.

[Benhim]

A good tax accountant is a necessity when dealing with state taxes. The issues in my local area with sales taxes have cost several businesses their lively hood in the last year. Often times a state's revenue department isn't on top of things. Especially in good times they don't go after everyone for everything because they don't really need the money. Unfortunately we're in hard times and states are going after delinquent companies.

Washington collects sales taxes, and my neighboring State Oregon is one of 5 states in the union that doesn't. Washington deemed that tax should have been collected for sales made to Washington residents over the last decade. They went after one Oregon business this last year for $800,000 in supposed back sales taxes and 1.3 million in interest and fees. I'm really not sure how they can possibly get away with this, but they have. The worst part of the story is the business can't pay, so they closed down. Washington isn't going to get their money and 132 people are going to lose their jobs. The owners and the workers are the big losers here, but they also cost the State of Oregon a lot of tax revenue as well.

States have the power to do pretty much anything that want like seize assets. If you're a sole proprietor your own personal assets aren't behind the veil of protection that protects a corporation. Meaning a state can come after your house for back taxes owed by your business. Because of the cost of incorporation I can imagine it's not something that potters generally do. Bottom line $500 bucks is a small price to pay to cover yourself.

[Up in Smoke Pottery]

an accountant is definitely worth it, I ship mine to an accountant several states away, usual bill $200 for personal and business returns, but I do not need a state return. I have thought about going local a couple times, but when ever I have a question, they are able to answer it and the service is awesome. I do file my own sales tax in multiple states.

Shop around, get quotes references, use Angie's list, "best of", sites like that. We found ours when my wife sold Mary Kay and she attended a company sponsored seminar, and we have used them for 12 years now.

[teardrop]

I married an acountant/CPA/MA/CFO 30 years ago.

When I was in retail/had my own hydroponics store she taught me how to "do the books", pay the taxes to the State each month and keep track of inventory/sales. It's not >hard<...it just takes an incredible amount of time.

$500 is worth it!

teardrop

[Marcia Selsor]

My husband and I both use an accountant. She was a student of mine 30+ years ago.CPA.
She has been doing my business taxes for 30 or more years including helping me through
3 audits. They really see a red flag for overseas living. But they are a good reminder of the need to keep good records.
Marcia

[Mark C.]

I pay all my own sales taxes to whatever state I owe sales tax to
for my federal and my local state taxes I take booth my business records to a good accountant
Tax laws i leave for others to mess with
Mark