What kind of accounting records are needed to record sales and sales tax liabilities?

Accounting records vary widely depending upon the size and type of business. The information provided below could be used in small businesses.

Source documents show the details of a transaction. Individual sales may be recorded on one of the following "source documents":

• Sales invoices
• Restaurant tickets
• Cash register tapes

· The individual source documents need to be summarized and totaled to compile daily, weekly and monthly financial information. These summary documents are the basis of accounting and financial records, such as financial statements and tax returns.

• Sales journal including sales tax liability
• Spreadsheets
• Summary worksheets for cash register tapes
• Weekly and monthly recaps
• Daily Summary Information
• Z tapes (total sales and taxes by categories)
• Daily summaries/cash out sheets
• Restaurant ticket totals
• Sales, sales tax, totals
• Sales journal, worksheet, summary
• Monthly/Quarterly Summary Information
• Prepare summaries/spreadsheets. Summaries can simply be the total of a spreadsheet that includes daily postings.

Worksheets should be designed to be self-checking. General ledger or spreadsheet information for sales and taxes collected should always be reconciled to return information. Any reconciliation's should be clearly documented.

Both source and summary documents should be retained for at least three years from the date of filing and paying a return.

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