Lighthouse Business & Risk Solutions

BOOKKEEPING TIP: The Sales Tax Trap Most Business Owners Fall Into 🚨

You collected sales tax from customers. You put it in your business account. You think it's yours.

It's not. It's the state's money. And if you don't track it separately, you're in trouble.

HERE'S WHAT HAPPENS:
You collect $50K in sales tax over the year. You spend it on business expenses. Tax time comes. You owe $50K to the state.

But you don't have it. Because you spent it.

Now you're scrambling. Penalties. Interest. Audit risk.

This is one of the most common mistakes we see. And it's completely preventable.

WHAT YOU NEED TO DO:
✓ Track sales tax separately (don't mix with income)
✓ Set it aside in a separate account (or at least earmark it)
✓ File sales tax returns on time (monthly, quarterly, or annually depending on state)
✓ Pay the state what you owe
✓ Keep records of all sales tax collected and paid

It's not complicated. But it's critical.

If you're collecting sales tax and not tracking it separately, that's a red flag. Comment "SALES TAX" or DM us for a compliance review.