Bookkeeping Company Houston Tax kept out of profit
A Harris County invoice landed and the tax is still sitting in profit. What you collected for the state does not belong in profit. We move it out before the month is called done.
A Harris County lookup
On a Harris County invoice we expect 6.25 percent kept for the state, 1 percent kept for the city, and 1 percent kept for transit. That is the stack we check. We do not invent a blended rate from memory.
An address in Fort Bend County can show an assistance district instead of that transit row. The county name still matters. We look the address up on the Comptroller site before we book the row.
Where the money sits until it is paid
Until the filing, that money is a liability, not income. Leaving it in profit makes a good month look better than it was and makes the later payment look like a surprise loss.
We tie the liability to the filing. If the return and the books disagree, we stop and find the invoices, not a plug. The same habit is what makes the annual return less of a shock.
What this page shows
This page shows where the collected tax sits in the books, and a rate should be confirmed before it is charged. Rules change, and the county on the invoice is the lookup.
The Offshore Technology Conference week in early May is when a lot of energy firms are away. We still want April closed before that week, so May is not spent reconstructing April.
We also read the exemption certificates you actually have, not a note that says everyone is exempt. A missing certificate means the invoice should have collected the tax, and the books should show that holding. We will not invent a certificate to make the liability smaller.
When two locations sell the same product, each address gets its own lookup. A rate that was right for one counter can be wrong for the other. The tenth is when we notice that, not next March.
Ask about the row.
Tell us the county on the address and which month the tax is still sitting in profit.
You will be talking to the Steven Palmieri practice.