Owning a small business can be a great way to gain independence and increase a person’s financial stability and standing. Unfortunately, not everyone who goes into business for themselves is savvy in preparing a tax return. An accountant can help by filling in the gaps and making management of finances easy and worry free. Before a business owner meets with an accountant they should have the following information on hand. This will allow the accountant to assist with Income Tax preparation in New York City and get any size business ready to file in no time.
Income Information
The first step in preparing taxes is to determine the businesses total income. Be sure to include any 1099-MISC forms that were received, and any other payments that were recorded. Most business owners find that keeping track of money as it comes in is the best way to determine total income. If it’s too late for that, just use a bank statement to prove what money was received.
Expense Information
Once all of the expenses are entered, the next phase of Income Tax preparation in New York City is to list all expenses. It is important to include any bills that were paid that link directly to the operations of the company. Staff and contractor wages are also figured into expenses, and drastically reduce the tax liability of a company. Talk to a CPA about any other items that can be written off and used to lower any tax bill that may be due.
Trustworthy Documentation
It is vital that a paper trail exists for all expenses and income that are reported on a tax return. If a business is audited, the government will want to see proof of any items that were listed as a direct expense of the business. If vehicle costs are also factored into expenses, be sure to have a mileage log detailing all travel that took place.
Doing taxes at the end of the year can be a very stressful experience. Make it as simple as possible by talking to the tax preparation experts at Robert A. Woloshen CPA, PC. They can guide any business owner in the right direction and make the nightmare of filing taxes a piece of cake. Visit Rawcpa.com or call their office to learn more and schedule a consultation with one of their certified public accountants.
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