Why Owing Sales Tax Shouldn’t Catch You Off Guard — And One Easy Trick to Avoid It

If you’re a business owner, you probably know that sales tax is something you have to collect from your customers and then pay to the government. But if I’m honest, many of my clients tell me they still get caught off guard when it comes time to pay sales tax — sometimes realizing they don’t have enough set aside. Sound familiar?

The truth is, owing sales tax doesn’t have to surprise you. And it doesn’t have to be stressful either.

Here’s a simple system I always recommend:

Open a separate bank account just for your sales tax money.

Why? Because it keeps that money safe and sound — away from your everyday business expenses — so you don’t accidentally spend it.

How does this help?

Imagine this: You have your regular business checking account, where your income and expenses flow. Then, you have a second account just for sales tax funds. When you get paid sales tax on a sale, that money goes straight into this second account.

One of my clients and I actually set up a system where, every week, we move the sales tax money from their business account into their dedicated sales tax account. It’s a simple step, but it means they don’t have to think twice about it. The money is safe, and they always know it’s there when tax time rolls around.

Why is this such a game-changer?

• No more accidental spending: Since the money’s separate, you won’t dip into it by mistake.
• Less stress: You can relax knowing your sales tax is being handled regularly.
• More control: It’s easier to track what you owe and make payments on time.

This is a straightforward, easy-to-implement solution that can save you a lot of headaches. It’s one of those small changes that has a big payoff in keeping your business on track and your finances healthy.

If you want to chat about how to get this set up for your business — or want someone to manage it for you — I’d love to help.

Book a quick call with me here: https://calendly.com/mariyaluqmanicpapc/15 Let’s make sales tax one less thing to worry about.