General Contractor

Hi Team,

Can someone provide guidance on the process used to calculate quarterly Sales & Use Tax for a General Contractor in California?

I am specifically looking to understand whether there is a standard procedure or workpaper that is followed, including:

• How taxable sales are determined
• How use tax on untaxed purchases is calculated
• Treatment of materials, equipment rentals, and fixed asset purchases
• Any supporting schedules or reconciliations used during the quarter-end process
• Best practices for tying the calculation back to the general ledger and tax return

If there is an existing procedure, template, or example workpaper available, I would appreciate it if you could share it.

Thank you for your help.

Best regards,
Hiral Sompura, CCIFP
Accounting Manager