[pianotech] Quick Quickbooks Question

[Paul McCloud]

Hi, Matthew:
    Some  good advice so far.  But, buying parts from suppliers should not cost you tax.  You must charge tax on what  you sell to customers.  If you are paying tax on parts you buy to sell to customers, you need to get a tax resale license.  Your suppliers  won't charge you tax if you establish the fact that you're in business.  It's understood that the tax will be paid by the customer, not by you.  
    In Quickbooks, you have to set up items for sale  For each item you sell  (accessories, Tunings, repairs, rebuilding, whatever), you will program the sales price, whether it is goods or services, and whether it is taxable or not.  (In KaliFornia, we don't charge tax on labor.  In your state, I don't know.)   Then when you make your estimates, sales receipts, invoices, or whatever, it will automatically unclude the tax  and be added together at the bottom of the page.  QBooks will also total how much sales tax you owe at the end of the tax period, so be sure to keep some funds set aside for this.  On the Home page, there's a button "Manage Sales Tax" where all the info is stored.
    If you aren't using QBooks to make your receipts, invoices, etc., then you will need to figure and add tax to your bill in the customer's home.  If you don't add it then, you'll be paying the tax yourself out of your pocket.  
    I'm not an expert QBooks guy, but I've used it for many years.  I hope this helps.
    Paul McCloud
    San Diego
    
    


----- Original Message ----- 
From: Matthew Todd 
To: pianotech at ptg.org
Sent: 02/24/2011 5:42:53 AM 
Subject: [pianotech] Quick Quickbooks Question


Does anyone else here use quickbooks for their financials?

Could some of you please e-mail me and let me how I classify wholesale parts cost seperate from my income?  I'd rather not pay taxes on parts that I purchased for customers.

Thanks!


TODD PIANO WORKS 
Matthew Todd, Piano Technician 
(979) 248-9578
http://www.toddpianoworks.com
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