How the Right Tax Accountant Can Help You Manage the Ins and Outs of Living in NYC

Written by Small Business Magazine on July 2, 2018. Posted in Accountants in nyc, Accounting services, Tax accountants

An old adage says that the only two things that are certain in life are death and taxes. If there’s one thing Americans hate, it’s paying taxes.

How much do Americans hate paying taxes? According to a survey from WalletHub, one in four Americans would gladly get IRS tattooed on their body for a future free from taxes. What’s more, another 11 percent of those surveyed would name their first-born child Taxes.

For as much as Americans hate paying taxes, there’s no denying that it’s important and not paying them could have some dire consequences:

  • About 1.1 million people will be audited by the IRS each year and a third of those audits are conducted in the field by IRS officials.
  • The IRS can audit any business tax return within three years of filing and it can collect back taxes owed for up to 10 years. As an example, if a 2017 audit of a return filed in 2015 finds discrepancies in previously filed returns, then the IRS can collect back taxes owed between 2007 and 2017.

Living in New York City comes with its own set of unique issues. Living in the Big Apple can be an exciting, thrilling experience, but the chances are good that your living experience in New York City will be costly, especially at tax time.

  • The U.S. Census Bureau estimates that the median household income in New York City is about $50,711.
  • The Department of Finance collects more than $35.8 billion in revenue in New York City.
  • New York has a personal tax income rate that ranges from 4 percent to 8.82 percent as of 2017.
  • In New York City, tax dollars break down this way: 31 percent to Uniform Agencies (police, fire, etc.); 29 percent to Education; 19 percent to Health and Welfare and 21 percent to Other Agencies (transportation, parks, etc).
  • In the 2017 fiscal year, 45 percent of all tax dollars collected in New York City was from property taxes.

Any way you slice it, living in New York City is expensive. With so much at stake, it pays to know what to do and how to do it correctly when it comes to paying the tax man every April 15.

For small businesses, especially Mom and Pop stores, paying taxes correctly and on time is crucial and following the right steps can save you and your small business a lot of hassle. That’s where good accounting services come in. A tax accountant can provide sound advice, good accounting services and take all the hassle out of accounting. Here are some ways a tax accountant can help you:

  • Assisting with financial analysis.
  • Giving advice on accounting services
  • Helping you keep track of expenses
  • Helping you separate your personal expenses from your business expenses
  • Helping you close out your books at year’s end and creating financial reports
  • Help prevent you from being audited by the IRS
  • Work with you to help create a budget for your business that will help you meet your businesses’ goals

Good accounting services can also give your small business a forecast of how it’s doing financially to better inform important decisions going forward. Good bookkeeping services also offer sound advice from tax accountants.

Rather than scrambling, there are plenty of bookkeeping services to help ease the stress of keeping track of expenses. Companies like QuickBooks and GoDaddy offer bookkeeping services online and they also have apps, allowing businesses to keep track of their finances on their phones if they so desire.

When running a small business, especially one that you own, every decision big and small is important. Decisions must be made with confidence and when it comes to tough decisions, trusting your instincts is key. Having confidence in your decision will help your business grow and might make customers more confident in your business.

Having the right accounting services can help avoid tax problems, keep track of the flow of your money and allow you to make sound business decisions.

If you’re in the market for a tax accountant in New York City or reputable accounting services in NYC, Firms like Goldfine and Company can help you get started.

Thumbtack provides a list of accounting firms along with reviews.

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