Okay so we have plenty of new clients that we are setting up on payment plans that sometimes span multiple years. So to make filing taxes clean, we are unchecking the box to include all the sales tax on the final invoice. This means however, that setting up nice round clean retainer amounts is a little harder. Well, today I sat down and went back to algebra to unlock the formula needed.
The formula to calculate a clean payment amount is: payment you want / (1 + (sales tax total / total bill))
For instance, say you have a wedding package totaling $2200. You want the first retainer payment to be $800 and you have a sales tax of $57. That would be: 800 / ( 1 + ( 57 / 2200)) giving you $779.80. So in the payment "tab" for the first payment you enter that number and when you click okay it will bring up the screen with a nice round $800 retainer payment for them to pay.
Now perhaps I am the only freak who wanted to do this setup. But if not, it is out there. Much easier for us to say retainer is $1000 than well your retainer is $1021.22 or some crazy number.