Do I "Do Taxes"?
This is a question I get asked often. This is often a very complex question, because people usually mean something different than what they are asking, and I know they mean something differently, and they know that I know........ok this can get confusing. Like taxes! See what I did there?
To clarify, people usually ask if I am an income tax preparer, an EA (enrolled agent of the IRS who prepares taxes), or a CPA. I am none of these things, and I don't do income taxes, but luckily for us, we have LOTS OF OTHER KINDS of taxes!
Depending on the industry and state you are in, if you own a small business you are liable for anywhere from a few to several different types of taxes you must pay. If you get a bookkeeper/accountant like me that knows how to do these, you are in luck. I help my clients navigate the tax world and it can get ugly.
Some of the taxes I do include but are not limited to:
Battery Taxes (yep!)
Special Machinery taxes
Diesel Fuel Tax
Cigarette and Tobacco Tax
Because I specialize in E-Commerce, I am constantly reviewing changes with Sales Tax, which is crucial for online sellers to know. Some platforms collect the tax and remit it for them, and some do not. If you are an online seller and you are on Amazon, for example, you are considered a facilitator. Meaning, Amazon collects the tax from your customer, facilitates it through you, then it passes right back out, and Amazon reports and remits it. Every channel is different.
The best way that I describe what I do when people ask me if I "Do Taxes" is the following:
"I sure do!! What are you selling? The more regulation the better!!".....I kid. I explain to them that I do LOTS of taxes, but none of them involve a 1040. I don't get into the personal deductions of people, I live in the business.
Another thing I like to do is pass on helpful things to other accountants and bookkeepers because hey, if they look good, I look good. The CDTFA (California Departments of Tax and Fee Administration) offers tons of FREE resources for business owners. I do the heavy lifting but I usually explain to clients, especially newer online retailers that they need to have a fundamental understanding of what they are liable for. Here are some of the many classes they offer. Check it out!!