Paying NYC Sales Tax Made Easy: A NYC Small Business's Guide
Among various matters in your business, dealing with financial-related tasks can easily prove to be one of the most difficult experiences that an owner goes through almost daily. Whether you are new to the business world or have been operating right in the heart of Manhattan for decades, you’re likely familiar with the difficulty of dealing with numbers. From balancing your digital sheets to forecasting far enough to plan your next steps and goals out, dealing with accounting and bookkeeping is often fulfilling yet challenging, especially when paying your small business’s sales tax.
The hurdle of dealing with sales tax (and how you can make things easier)
Although many up-and-comers would like to believe that handling sales tax as a small business isn’t so difficult because of the smaller figures involved, it can actually prove to be quite the opposite. By now, you’re probably familiar with the headache that comes with putting your papers together and complying with the IRS’s complicated list of sales tax regulations.
However, what if we told you that dealing with your small business’s sales tax doesn’t have to involve too much struggling anymore? All you’ll need to do is understand the basic rules of sales tax, avoid common stumbling blocks, and invest in a comprehensive tax solution that will provide easier experiences in the long run.
Do you even need to collect and remit sales tax? When it comes to collecting and remitting sales tax, the general rule is that small businesses need to do so in certain situations, but this is also the most confusing part of it all. If you aren’t sure regarding your eligibility for collecting and remitting the expense in question, here are some questions that will point you in the right direction:
“Is our product or service taxable?”: Although every state and locality requires the collection of sales tax, it’s worth noting that each of them offers various exceptions—New York City included. Based on NYC’s current tax laws, you can partake in exemptions with respect to your type of product, point of sale, and other key factors that will allow you to avoid unnecessarily paying certain amounts.
“When do we charge sales tax?”: Once you understand the exemption-related matters, you will need to figure out when you have to charge and account for sales tax by checking the state’s applicable rates and guidelines (alongside potential specialty rates). For New York City start-ups, the required information can be found by searching online or consulting Totally Booked’s experts to determine which specific items are applicable to your business!
“Do we have a nexus?”: Best defined as the business connection between a seller and a state, a sales tax nexus bears a few details that need to be accounted for when determining how much to declare. By taking the time to get familiar with your nexus requirements, you’ll be able to get a clearer picture of certain costs and figures that you need to account for!
Investing in the right solutions
When it comes to making your sales tax payment experience a lot easier, it’s worth noting that today’s technology has afforded different opportunities that are worth investing in. Let’s look at some of the ways that you can ease up the process in question and take lots of stress off your plate during the tax prep season:
Tax preparation software: One of the most significant tools that NYC businesses have been able to use for their sales tax payment and filing processes is top-quality tax preparation software. With a dependable solution in place, you won’t have to worry about missing key details or making miscalculations because AI technology will help handle the nitty-gritty for you!
Outsourced services: Today, one of the most critical solutions that businesses should become more well-aware of as they handle their sales tax-related matters is outsourced services. For instance, working with Totally Booked will allow you to truly gain a greater level of control over your sales tax payment and documentation processes!
Conclusion
Although it can be intimidating and difficult, dealing with sales tax is a process that any start-up can handle easily and conveniently by considering the right tips. Thankfully, following this guide will allow you to have a smoother experience with the task in question without doing anything drastic or making risky trial-and-error-based decisions!
We offer bookkeeping services in New York with our QuickBooks consultancy. With our help, you’ll be able to focus on what you do best while we increase your bottom line through efficient processes. Get in touch with us today to see how we can help!