On this episode, Karen and Cadie uncork their Knowledge Nuggets Series and talk income management. Karen and Cadie explain what is and is not business income. Plus, Karen shares the ins and outs of Alabama Sales Tax.
> Report your revenue and all loans in detail on your ledger.
> Make sure you are only being taxed for revenue streams and not any loans.
> Sales Tax is not cash flow and is not your money.
> Always charge sales tax on taxable items and pay your sales tax by the 20th of every month.
> Some states charge sales tax on services.
Learn more about Karen Simmons & Cadie Gaut
Know your income, identify all the income sources, and record them in detail on your ledger or accounting systems. – Karen Simmons
Loan payments are not expenses and not income. Make sure you are not mistakenly taxed on any loans. – Karen Simmons
Sales tax is based on only what the end-user pays. – Karen Simmons
Before you open up a business or reach out to other states, make sure you are fully aware of how that state works and what it charges sales tax on and what it doesn’t. – Karen Simmons