When you start a new business, you may very well find yourself asking the question, “What was the first day to pay sales taxes?” The importance of this is so that you know at what point you need to begin submitting payments to the taxing authority. Your accountant may also ask you, “What was the first day to pay sales taxes?” so that he knows at what point your business became liable for those taxes, in order to determine the financial condition of your company.
Even if you have everything on a computer and have kept records of all the sales from the time you opened your doors, you should still be aware of the first day that your company became liable for sales taxes. In addition it’s important to ask, “When was the first day to pay sales taxes?” so that you can project ahead and get an idea of how your income is going to flow including your tax payments.
If you changed your business into a location that has sales tax, you will definitely need to know what was the first day to pay sales taxes if you weren’t doing it in the past. This doesn’t have to be a physical move as such, but rather if you change the state of operations. For example, if you are physically located in Oregon, which does not have a sales tax, but your corporate headquarters is located in Washington State, you will need to pay sales taxes on your sales, especially if the shipping is done from a central location in a state that has sales taxes. For example, you may rent a warehouse to store products, and if that warehouse is in Washington State, and you ship the products from that location, you re liable for sales tax to the state of Washington.
Always keep mental and written notes that define for you the answer to the question, “What was the first day to pay sales taxes? Since you never know when you will need to answer that question, you don’t want to have to search for the answer when it is needed. In fact, anything that involves your business and taxes should be in a spot where you can go right to them without having to think.
Staying organized is the easiest way to ensure you will have a profitable business, and though it’s no guarantee, with organization you will certainly know on a daily basis whether you are turning a profit or your company is falling in the red. If it’s the latter, you have plenty of time to take corrective action if everything is organized.