If you take your subtotal for an estimate and multiply it by your tax percentage, you might find there is a discrepancy between that number and the total tax in your proposal.
This is because LMN calculates tax on individual items and rounds to the nearest penny. These $ amounts are added together to calculate your total tax.
Multiplying your subtotal by your tax % will often give you a number that differs slightly from the alternative method
However, if you were just to take the subtotal and calc 13%, it’s (often) off by a penny or a few. That’s because the item-driven method has more opportunities to round up. So, legally, we’re correct – but since most landscapers don’t show item-based invoices (just a total), we’re also often “wrong” if you calc 13% of the total.