There are several more taxes that small businesses must adhere to each year. This lesson explains these other taxes including: Real Estate Taxes, Business Property Tax, State Franchise Tax, State Licenses or Fees, Unique Production or Consumption Taxes, and Assessments.
Month: June 2017
There is no single management style to address the multitude of working capital cycles existing in the various business sectors and the underlying industries. Taking raw resources and turning them into consumer goods has different time frames depending on the item produced. In addition, the sales period varies from product to product. Compare the production and sales cycle for an automobile to that of ice cream.
It is important for the bookkeeper to track income taxes for the business and the owners. Tracking includes apprising management of current status and pending obligations. In addition, the bookkeeper must make sure the payments are made to the correct authority for the proper amount and assigned to the appropriate federal identification number.
A major source of local government revenue is the meals tax. Most states authorize the right of local governments to raise revenues utilizing a meals tax. It is defined differently in each state. If a business is involved in the food service sector the bookkeeper needs to grasp the fundamental concepts of how the food tax is structured. In addition, this tax collection process is accounted for in a similar manner as sales tax.