For small business owners, tax time can become a confusing nightmare if they haven’t stayed organized or don’t have the right professionals by their side. Hiring a professional NYC tax accountant with small business experience is a great way to avoid the headache of filing your own taxes and possibly making a mistake. As an established NYC small business accounting firm, we’ve seen many owners make several mistakes that have cost them big-time. Here are three of the most common and dangerous mistakes we’ve seen business owners make on their taxes.
Skipping quarterly payments.
It’s so important for small business owners to stay on top of their quarterly tax payments. If money is tight and you skip a payment, or you simply forget to calculate your quarterly taxes and send in a payment, you’ll be hurting at the end of the year. Paying a hefty tax bill in April can be devastating to many small business owners, and can even put some out of business.
Avoid putting your business into tax debt or facing a huge tax bill all at once by keeping up with those quarterly payments. 212 Tax Accounting Services is an experienced NYC small business accounting firm that helps to keep all small business owners on track with quarterly taxes. Paying an accurate amount each quarter is paramount to staying afloat financially in April.
Throwing away important records.
You’re required to keep your tax records and paperwork for at least three years. This includes those small details like receipts for your business expenses and loan papers. It may seem like a pain to store all these records for years, but it’s important to hold on to this paperwork in case you get audited.
If the IRS decides to audit your small business tax return, you’ll need to provide proof of all deductions and expenses, or you may be charged taxes and penalties. An audit can be expensive if you haven’t kept the records needed to back up your tax return claims. As an experienced NYC small business accounting firm, we help clients to stay organized and always be prepared for an unexpected audit.
Combining personal and business finances.
When you’re a small business owner, the line between personal and business expenses can be blurred. However, it’s important to keep your personal expenses and spending separated completely from what you spend or expense through your business. Using your business for personal expenses is considered tax fraud, and one tax audit is all it can take for major penalties to hit your bank account.
An experienced tax professional at 212 Tax Accounting Services can help you to keep your personal and business expenses organized and separated. Our knowledgeable NYC small business accountants are useful resources for business owners who are unsure about categorizing certain expenses or bills.
These are only a few of the common tax filing mistakes small business owners tend to make. Hiring a professional NYC small business accountant from 212 Tax Accounting Services is the best way to avoid making costly mistakes on your tax return. If you want to keep your small business’s taxes organized and accurate, give us a call today.
