Article by David Joseph, Co-founder of DAVO Sales Tax
You know how sales tax works; if you go into your local coffee shop and buy a $2 coffee, the total is $2.16. That $0.16 is for the state or local government for sales tax. The coffee shop needs to hold on to that $0.16 until sales tax is due at the end of the quarter.
Holding onto $0.16 doesn’t sound like a big deal, but when you serve thousands of cups of coffee, quiches, bagels, smoothies, juices, desserts, and merchandise, that $0.16 turns into tens of thousands of dollars in the bank account that isn’t yours – it belongs to the state. When you are growing your business, that sales tax money in your bank account can look like working capital, and if that money isn’t there when the state collects your sales tax, that can be a massive headache.
The Bean NYC Frustrated with Sales Tax
That is precisely what happened to Ike and his partner as they grew The Bean NYC to the busy multi-location coffee shops that they are today. The Bean locations are popular East Village community and cultural hubs with a loyal neighborhood following and Ike and his team are constantly working to improve them and delight their customers.
When you are growing your business, there are so many things to deal with, sales tax is just one, and it can cause big problems. Once you get behind, it is tough to get ahead. There are fines, late fees, penalties, and interest. The state can even shut down your business.
Ike said keeping up with his sales tax was a regular problem. It took valuable time from his busy days and was even an obstruction to his progress. He needed a solution to stop wasting his time worrying about sales tax and could invest his energy into nurturing his growing businesses.
Finally, A Sales Tax Solution
Ike met David Joseph, the founder of DAVO Sales Tax, at the International Restaurant Show in NY in 2017. They chatted, and he knew immediately this was the service he needed. The problem was the POS The Bean was using didn’t integrate with DAVO. He kept David’s card on his fridge.
When it came time to switch POS systems, he called David and switched to a POS that had DAVO. He signed up for DAVO on day one. From that day, sales tax worries became a thing of the past.
At the end of each day, DAVO checks The Bean’s POS, verifies the sales tax, and pulls the funds immediately from their account. By the time the deposits from the day enter their bank account, the sales tax never touched it. The Bean has their money, and the state’s money is held separately by DAVO. At the end of the quarter, DAVO files and pays his sales tax on-time and in full. Ike gets an email letting him know it was filed and paid full quarterly.
Years later, Ike says he fully realizes how much managing sales tax put stress on his business and what a wasted expense it was. Something that used to weigh heavily on his thoughts, he doesn’t even think about anymore.
Ike says not only does he love it, but his partners, and his accountant love it too. It makes everyone’s lives easier. Knowing that his sales tax is taken care of feels so good. “David Joseph and DAVO have become trusted partners that I cannot see my business thriving without.”
David Joseph is the co-founder of DAVO Sales Tax and a former restaurant owner. DAVO Automated Sales Tax integrates with many popular POS systems to set aside sales tax daily and file and pay it when it’s due, on-time, and in-full. Put your sales tax on autopilot and never worry about it again. David can be reached at firstname.lastname@example.org or (888) 659-8432.