Managing the taxes of a small business isn’t an easy task; thus, you need an accountant for the business tax preparation in Westchester, NY. An experienced accountant will prepare your taxes quickly and file them without missing any deadlines. To get started, your accountant will need different documents and other things to manage taxes for small businesses. Read this article to know the things you must provide to them. Here we go!
Things An Accountant Needs For Small Business Taxes
1. Financial Records
Your accountant will ask for detailed financial records for small businesses to manage all taxes. These include balance sheets and cash flow statements. All these financial records offer detailed information about the financial performance of the business. Organized financial statements allow your accountant to understand tax deductions and liabilities accurately.
2. Expense Documentation
When you hire an accountant, they provide detailed documentation of all business expenses. These include bank statements, invoices, and receipts. This expense documentation should include all deductible expenses like utilities, rent, supplies, professional services, travel expenses, payroll, and other costs. Through accurate and in-depth expense documentation, accountants can maximize tax savings and reduce liabilities for small businesses.
3. Income Documentation
Ensure your accountant has access to all business revenue streams, like bank accounts and receipts. The revenue streams for your company, including sales revenue and any other kinds of money your small business generates, should all be appropriately reflected in this record. Your accountant can accurately report the income of your company and pinpoint any potential tax issues if you provide them with thorough and precise income data.
4. Tax Forms and Filings
Your accountant will be responsible for accessing different tax filings and forms related to your small business. These include quarterly estimated tax payments and payroll tax filings. It also includes sales tax returns and any other tax-related documents. Make sure you offer your accountant a copy of all important tax forms to avoid any penalties.
5. Business Structure Information
Explain about the legal structure of your business to the accountant. It includes if the business is a corporation or sole proprietorship. Give adequate information about your business entity as it influences your tax liabilities and filing requirements. Your business structure has a major role in these aspects. To guarantee correct tax reporting, let your accountant know about any modifications to your company’s ownership or organizational structure made during the tax year.
Wrapping Up
Managing business taxes is a complicated task. You must give your accountant access to these things to streamline the smooth taxation process.
