Mayhem & Stout transformed from a weekend experiment to a food hall success based on the popularity of its slow-braised and artisanal sandwiches. But sales tax penalties threatened the restaurant’s financial well being until it started using DAVO Sales Tax.
Learning the Hard Way: Sales Tax is Not Working Capital
Founder Steve Applebaum’s sandwiches were a hit with local foodies. He made the leap from part-time at Brooklyn’s Dekalb Market to the Urbanspace Vanderbilt food hall in midtown Manhattan while continuing to do pop-up markets and catered events. With success came growing pains – including managing cash.
Mayhem & Stout uses the Square POS for payments, including collecting sales tax revenue. Like many start-up small business owners, Steve would dip into sales tax revenue when he needed working capital. But that meant scrambling for cash when it came time to remit sales tax to the state. After missing a few quarterly sales tax payments, he was hit with a several thousand dollar penalty which came straight off his bottom line.
“By far, one of the best decisions we made for our business. I highly recommend DAVO.”
Sales Tax Solution for Square Sellers
Steve knew that if he wanted to grow, he needed to pay his sales tax on time. He found DAVO Sales Tax, an app plus service available on Square that automates sales tax from start to finish. DAVO uses daily sales data from Square to set aside the exact amount of sales tax collected daily in a secure bank account. When sales tax is due, DAVO seamlessly files and pays on-time and in-full, guaranteed. Not only does DAVO help Mayhem & Stout avoid penalties, the business now earns discounts offered by the state of New York for on-time payment.
“Since we started using DAVO Sales Tax on Square I never even think about sales tax anymore,” says Steve Applebaum, Mayhem & Stout. “DAVO sets our sales tax aside daily and always files and pays it on-time. We get our NY State on-time filing refund and that makes DAVO priceless! By far, one of the best decisions we made for our business. I highly recommend DAVO.”