Include Tax from Supplier on Estimate Total
When preparing an estimate, there should be an option to calculate the tax that will be paid to the supplier along with the material order. This ensures that the material cost in the estimate reflects the actual total cost, including tax, rather than just the pre-taxed subtotal of the materials needed. Since this doesn't currently build in the tax we will pay to our supplier, the tax that ultimately is charged on the material list cuts into our profit margin since it wasn't accounted for in the estimate.
Laura Ratliff
shared this idea
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RCE Inc commented
I see there now is a tax calculator in the estimate which is a step in the right direction, but it is visible in the estimate to the customer which is a huge problem for the many contractors who do not disclose labor vrs material as the customer can easily figure out the split (on capital improvement jobs where tax is only applied to the material). It is also laborious to individually select tax exempt vrs not exempt on every item. Full siding jobs for instance only tax material, whereas repairs we can disclose the tax paid to the customer as it is applied to the whole job evenly. Speaking as a NY contractor anyways... It might be easiest to apply sales tax directly to all products linked to the supplier as that gets taxed regardless, and then having a separate option to tax remaining items if needed, and have that option be either visible or not visible to the customer.