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What
kind of accounting records are needed to record sales and sales
tax liabilities?
Accounting
records vary widely depending upon the size and type of business.
The information provided below could be used in small businesses.
Source
documents show the details of a transaction. Individual sales may
be recorded on one of the following "source documents":
- Sales invoices
- Restaurant
tickets
- Cash register
tapes
·
The individual source documents need to be summarized and totaled
to compile daily, weekly and monthly financial information. These
summary documents are the basis of accounting and financial records,
such as financial statements and tax returns.
- Sales journal
including sales tax liability
- Spreadsheets
- Summary worksheets
for cash register tapes
- Weekly and
monthly recaps
- Daily Summary
Information
- Z tapes (total
sales and taxes by categories)
- Daily summaries/cash
out sheets
- Restaurant
ticket totals
- Sales, sales
tax, totals
- Sales journal,
worksheet, summary
- Monthly/Quarterly
Summary Information
- Prepare summaries/spreadsheets.
Summaries can simply be the total of a spreadsheet that includes
daily postings.
Worksheets
should be designed to be self-checking. General ledger or spreadsheet
information for sales and taxes collected should always be reconciled
to return information. Any reconciliation's should be clearly documented.
Both
source and summary documents should be retained for at least three
years from the date of filing and paying a return.
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the Finance Department
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