Measuring a company’s ability to borrow money based on its past financial behavior. A better score can mean easier access to loans and lower interest rates.
What to consider
Understand local and state sales tax laws.
Keep detailed records for tax filing.
Set aside collected tax funds to avoid cash flow issues.
Real world scenarios
A boutique in New York collects sales tax on every transaction and remits it monthly.
An online retailer calculates sales tax based on customer location.
A local restaurant tracks sales tax collected to ensure accurate reporting.