Tracking Sales and Taxes
After a quick review of the steps taken so far in creating your business, I want to share briefly how to prepare for and what to expect when it comes time to pay taxes.
First, let’s check this list of things that you should have in place at this point in creating your business.
You should have a;
- Business name
- Business location
- Business bank account
And you should have;
- Registered with the Local Officials
- Registered with the State Officials
- Registered with IRS
- Registered with State Dept of Taxes for authority to collect sales tax
Finally, in regards to your product, you should have;
- An account with "Bowker" My Identifier for an ISBN and Barcode
- Created a book – a book file ready to upload to a printer
- A printer account – CreateSpace, Ingram Spark, BookBaby, or other similar services
At this point, you are on your way to ordering and selling your books. You will want to have an easy to understand system of tracking sales and subsequent sales tax. Createspace will track your gross sales and royalty distribution for you. You can select date specific reports for summarizing gross sales and your taxable sales.
For physical site specific sales such as a book signing or book launch you will want a card reader system that will track sales and sales tax as well. The best card read systems will have detailed comprehensive record keeping. I use Square, it is easy to set up and use and is up-gradable for additional features. Once all your account information is entered and saved, Square will manage and keep track of all your credit and debit card sales transactions. There are many card reader systems available and offer many optional features.
I just completed the quarterly filing of New York State sales tax online. Having all the relevant information at hand made filing much easier. Your state may have an online filing system as well. Google your state dept of taxes to find instructions on how to file. New York requires a quarterly filing of sales tax and also provides a credit for those who file on time.
I suggest you read several reviews of the various options available for printing your book and for processing sales. (Links to some below) Keeping close track of sales and related fees and taxes will allow you continue in your creative journey with confidence and lower stress levels.
Easy record keeping and tracking of sales are what you want. After all, you need time to write your next book and grow your self-publishing empire!
(Of course, you could always hire an accountant!)
About Book Printers
About Sales Tax
(Image above from lllustrator Megan E. Tennant cardigansncoffee blog )