7 Fundamentals for Managing Your Small Business Cash Flow

7 Fundamentals for Managing Your Small Business Cash Flow

One of the biggest challenges faced by small businesses, especially those actively trying to grow, is cash flow. Poorly managed cash flow can result in significant issues, and it is frequently listed as one of the biggest challenges for businesses. With small business failure rates at or above 50% in most developed countries and cash…

What is Excise Tax?

What is Excise Tax?

There are many forms of taxation in the United States, some collected by the federal government and others by local governments and States. One tax in particular that affects the consumption of specific goods is the excise tax – a very specific, often very targeted tax that you pay sometimes without realizing it. How is…

Could a National VAT Work in the United States?

Could a National VAT Work in the United States?

A number of scholars and economists have brought to attention the lack of a VAT in the United States. Currently implemented by every other nation in the OECD (Organization for Economic Co-operation and Development), including much of Europe, some argue that a VAT would help to increase revenue and revise the overly complex US federal…

Uniform Sales and Use Tax Exemption Certificates

Uniform Sales and Use Tax Exemption Certificates

Sales and use tax exemptions can be a complex issue for ecommerce retailers to understand, but it’s critical that they do. Without proper documentation, exemptions can fall apart and retailers can then find themselves in the midst of a costly audit. The problem is that all states have different laws and codes defining when and…

Are Software, SaaS, and Cloud Computing Services Taxable?

Are Software, SaaS, and Cloud Computing Services Taxable?

Ecommerce shops that sell software may run into complex rules regarding sales and use tax. It’s tempting to believe that “intangible” software, such as downloads and streams, are not subject to sales tax, but that is not always correct. As services available via cloud computing grow, states are looking to recoup lost sales tax revenue…

What You Need to Know about Sales Tax and Drop Shipping

What You Need to Know about Sales Tax and Drop Shipping

Drop shipping is a great way for e-commerce businesses that have limited or untested inventory to expand their customer offerings. By retailing products that are carried and housed by a third party distributor, such as a manufacturer, wholesaler, or fulfillment house, retailers can use drop shipping as away to grow their customer base, bring in…

5 Surprising Business Activities that Create a Sales Tax Nexus

5 Surprising Business Activities that Create a Sales Tax Nexus

In most cases, a business needs to collect sales tax in the states in which they are located. This concept, called nexus, means that if the business has a physical presence in a state, that state can compel the business to collect sales tax from its customers. Nexus is pretty cut-and-dry when you’re thinking about…