I’m not sure if this is the best place to ask, but here goes.
I run a small business. When I’m adding my income, do i include sales tax that i collected and then paid to my state?
For example: say i collected 13,500 in sales on square in January. I paid 1072.50 to the state of Texas and my county in sales tax. I paid square a fee of $135 for the month (made up numbers)
Is my total for January $13,500 and then i expense the square fee?
Is my total 12,427.50, and then i expense the square fee?
Basically i sell on Etsy and through square, I avoid anything else so i can keep track. Etsy pays my state sales tax, but I’m not sure how to account for square.
I hope this makes sense! Thanks in advance. I’m hiring an accountant for next year because i really hate this part of the biz.