The number one expectation you should have for your accountant is that your financial statements are timely and accurate so that they can process your tax obligations on time and without issue.

If you have an accountant looking to contribute more than tax services to your business, they should help you assess your financial statements as another set of eyes in seeing where you are spending more money than you need or should.

Overview

Any charge levied by a governmental entity for income, consumption, and wealth.  Taxes paid represent nonoperating expenses that should be included in Nonoperating Expenses representing Federal, State, City, and Property paid taxes.

Sales tax should be included as a negative value in your Gross Sales as a sales expense only incurred if a taxable sale occurs.  They are a reduction from Gross Sales that impacts your Net Sales since the government ultimately receives that portion of sales, not you.

The key to tax payments is knowing what you owe and not paying your tax obligations late.   The biggest challenge with paying taxes is not treating them as a high-priority cash outflow in your cash management projections.  Anytime you expect large tax bills, you must set aside funds to pay them when due.  Be late because you failed to set aside adequate cash inflow to meet your tax obligations, and you will enter a world of challenges and burdens as you fend off the government coming after you and your business.