4 Tips to Help You Do Taxes for Your Small Business in NYC: Our Guide
Dealing with taxes can be a headache for any company, especially small businesses. Large businesses usually have in-house accountants and bookkeepers to deal with responsibility, but smaller businesses may not have the same resources.
If you have just started a business, the chances are that you're dealing with your taxes by yourself. Unfortunately, doing so takes up plenty of time, and if you don't have much experience and knowledge with taxes, you may make mistakes that can result in severe consequences.
That said, if you're adamant about doing the taxes by yourself, here are the tips you'll need to do so properly.
1. Be sure to comply with tax laws
Depending on the type of business you run, there might be additional ones you'll need to follow as required by New York tax laws. For example, if you're an alcohol producer, you will have to pay a different set of taxes than an agriculture-oriented business. As such, take the time to research which tax laws apply to you and ensure that you follow them all.
2. Find the right tax forms
There are various tax forms meant for different business types. For example, a sole proprietorship will have different taxes compared to a partnership. You must identify what kind of business you are. If you're a small business, it is highly likely that you're a sole proprietor, meaning that you will need to use Form 1040 when filing your income tax return.
3. Keep accurate records
No matter how prepared you are with the right tax forms and how much you comply with tax laws, all will be for nothing if you don't keep accurate records. For that reason, you should keep all your documents, including deposit slips, canceled checks, receipts, and invoices.
Having all these documents on hand allows you to quickly reference them when checking your records, ensuring everything is accurate. This might seem like additional work, but it'll pay off at the end of the tax season, allowing you to submit your tax documents without worrying about consequences.
4. Submit taxes on time
There are different due dates to submit tax, depending on your business. For example, if you're an S corporation, the chances are that you will have to close by March 15th. Whatever the case may be, you need to make sure to submit on time. Late submissions will result in penalties that negatively affect your financial standing. If you cannot submit on time for some reason, you can try to ask for an extension.
Conclusion
By keeping these tips in mind, you'll be able to file your taxes on time. However, if you're still having trouble with taxes, don't hesitate to outsource your tax work to the professionals. Third-party experts can manage your bookkeeping and accounting needs accurately and efficiently, ensuring that you'll be more than ready to submit your taxes when tax season arrives. They will also help you identify various ways to save money, making this investment genuinely worth your while.
Totally Booked is a bookkeeping service provider that handles bookkeeping and more. If you're looking for a bookkeeper in NYC to take care of your taxes, work with us right away!