07/22/2026
🚨 The ticking time bomb in bookkeeping: Recording sales tax as income. ⏰💣
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Sales tax isn’t your business’s money; you’re simply collecting it on behalf of the state. When it’s recorded as income, your revenue looks higher than it actually is, your financial reports become inaccurate, and you could end up paying more taxes than necessary.
The fix? Record sales tax as a liability, not income. That way, your books stay accurate, your reports reflect your true profit, and tax time is a whole lot less stressful.
Not sure if your books are set up correctly? The Profit Firm is here to help. 📊💼
