Oh Venmo!
Posted on May 5, 2022

If you are using Venmo for business make sure you are doing it right!

 

Your personal and business Venmo accounts should have different usernames. 

 

As always, make sure your activity on Venmo is compliant! 

 

If you are selling products that are subject to sales tax….Venmo transactions should have sales tax calculated and collected!  The SC Department of Revenue treats these exactly like cash sales.  You need to collect the sales tax and then remit it.  

 

Sounds like a pain?

 

It is!  If it’s more than a pain to collect/remit sales tax for your Venmo deposits…don’t collect them!  Have customers pay you solely through a point of sale that easily collects and tracks sales tax.

 

Venmo may make it easier to collect the payments but if you are having to manually figure out sales tax, it’s not worth it in my opinion.  Sales tax mistakes are not fun!

 

Just because Venmo makes it easy to send and receive money, it doesn’t mean it’s easy on the bookkeeping end. 

 

I have to ask…are you doing the necessary behind-the-scenes work for your Venmo deposits and expenses?

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