Why are you booking Sales Tax payments to Income? Can you break out Sales Tax from my deposits?

Since we don't have access to our client’s sales systems, we don’t know how much sales tax is being collected. So we code the entire deposit (including Sales Tax) to the "Income" account. Then, when you pay in the sales tax you've collected, we code that against the Income account, so that the net remainder is your true income.

Therefore, if you want to know how much sales tax you've collected for purposes of filing your sales tax reports, we won't have this number for you. But if you are collecting sales tax, you should definitely have a Point of Sales system or merchant provider (Square, Stripe, etc) that tracks this number and provides you with the reports you'll need to file and pay your Sales Tax. You can then use a service like Avalara to pay your tax online.

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