If you prepare to run a company selling awesome wholesale electronics, then you may want to find out how to document your finances in such a way that you really don't end up getting frustrated when tax season comes rolling around the corner. After all, you really don't want the tax authority slapping you with heavy fines that can shut down your business or even land you in prison.
This is where Microsoft Excel appears.
Excel is a software that is not just the best way for calculating the earnings and expenditures from selling wholesale units, but can also be employed to instantly calculate the sales taxes you'll have to pay every year.
Here's a way to do it:
1. Open an Excel file and make a new workbook. Input "Retail Price" in cell A1, "Units Sold" in cell B1, "Taxes to be Paid" in cell C1 and "Sales Tax Rate" in cell D1
2. Input sales tax rate in your state or country in cell D2 in decimal form. Let's say that the tax rate in your state is 7.5%. Move the decimal of the number (7.5) to the left twice. This will outcome a decimal tax rate of .075. This is your tax rate expressed in decimal form.
3. Record down the retail rates for every of your wholesale units in from cell A2 going down. This is the price you will want to to promote your wholesale goods to buyers ahead of taxes.
4. Record down the number of wholesale electronics sold from cell B2 going down. If you haven't been keeping records of the units sold, use the receipts from your wholesale supplier as a rough introduction to how many goods had been sold throughout the year.
5. Click on cell C2 and then the formula bar just above the worksheet you're looking at. Input the following: "=A2*B2*x Change x with the interest rate you input in cell D2.
6. Right-click cell C2 and choose "copy." Left-click cell C3 and drag your mouse down to the last entry of data on column A and B. Right -click on any emphasized cell and choose "paste." If completed properly, you should see each cell on C displaying the properly taxable amount. For instance, you sold 800 units (placed in cell A2) of a product worth $60 (put in cell B2). If the sales tax rate is 7.5% (or .075), you should then end up with $3,600 (60*800*.075) on cell C2.
It is hugely advisable that you dedicate one worksheet for every separate month of the year and an Excel workbook for every year. This will permit you to better manage sales data of your cool wholesale electronics in manageable chunks You will also have a clear-cut clue of how your company does in the course of specified months.
Do take note that you don't need to pay sales taxes for purchasing goods for your wholesale electronics. Income tax is counted only when you promote a item to the last end user - in this case your buyer. You could also not have to pay sales taxes if you run your business on the Web as some states and nations really don't tax online-only businesses. You could have to pay import taxes if your wholesale supply is positioned abroad, but that is a complete different discussion altogether.
You might want to check out the video we've discovered online below about wholesale devices from an online retailer - Chinavasion
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