SmugMug and accounting issues
I've been an extremely satisfied SmugMug Pro user for 3 years. Before 2011, SmugMug did not collect sales tax from print buyers, so for tax purposes I simply took the profit payments as "commission income." As of 2011, SmugMug was able to collect sales tax from my customers.
Unfortunately, SmugMug does not immediately transfer profits and sales taxes following a sale. They issue payments on a delayed basis, AND they don't send the full amount of the sales transaction--they retain the item cost and their (15%) share of the profit.
When it comes time to enter this into QuickBooks and send sales tax $ to my state, this non-CPA has to spend considerable time with the CPA to sort this all out--and at my current level of business, the CPA consult costs more than the sales tax payments to the state.
Would be interested in hearing info/advice from those of you who use SmugMug Pro, with sales tax collections, and how you handle the accounting end of it. Would also like to hear if any other online photo vendors process customer orders and payments to photographers in a different way (i.e., immediately pay the photographer upon completion of the transaction, etc.) that is more non-CPA-friendly.
Thanks in advance for any tips you can offer.
|AF4_2483 Surfing the Serengeti by DaveInHouston|
from Hot Air Balloon view
|Peregrine Falcon by Psychic1|
from Best Wildlife Photo of the Week - 4