Finally figured out why my invoicing was always off by about 10% | Abq Local Freelancers - Freelance Forum - The Community for Independent Professionals
Finally figured out why my invoicing was always off by about 10%
I was adding sales tax after my total instead of including it upfront for Albuquerque clients and it took a client emailing me a spreadsheet to show me the math was wrong.
Hold up, I gotta gently push back on that "10%" thing for a sec. If you were adding tax on top of the total after the fact instead of including it in the price upfront, the math error would actually be way bigger than 10%, right? Like if your total was $100 and you added 5% sales tax after, that's $105. But if you were supposed to include tax so the final price was $100, then your base price should be around $95.24. The difference changes depending on the tax rate too. Just wanted to toss that out there because it could mess things up even more than you think lol.