Tax Accounting 101: For Small Business Owners

tax accounting in Brooklyn for small business

Why is Tax Accounting Important?

Tax accounting is important because it helps small business owners make accurate decisions. If a business owner doesn't know how to account for taxes, they will not be able to make the best decisions for their company.

The Difference Between Tax Accounting and Auditing

Tax accounting and auditing are two different professions. Tax accounting is the process of keeping track of the taxes that a company has to pay, while auditing is the process of checking whether or not a company’s financial records are accurate.

Brooklyn Tax accountants need to be very detail-oriented and precise in their work. They need to know all about tax law and regulations and how they apply to companies in order to calculate the correct amount of taxes owed. Auditors, on the other hand, need more general knowledge about accounting practices in order to make sure that a company’s books are accurate.

What is the Purpose of Tax Accounts?

A tax account is a company that specializes in managing taxes for small businesses. They can help you with all the paperwork, filing and tax payments. A tax account will help you keep track of your business expenses and deductions. This will make it easier to file your yearly taxes and save you from any fines or penalties.

A tax account can also provide payroll services, which will take care of all the processing of your employees’ paychecks and withholding taxes for them.

What is a Tax ID Number?

A Tax ID Number is a number that the Internal Revenue Service (IRS) assigns to entities that are not human beings. These entities include corporations, partnerships, estates, trusts, and other organizations.

A Tax ID Number is also called a Federal Tax Identification Number or an Employer Identification Number.

What are the Different Types of Taxes?

Taxes are a necessary evil. You have to pay them, but you don't want to. The first step in understanding taxes is understanding what they are. Taxes are any funds that the government collects from its citizens via the payment of duties and charges on goods or services.

The United States has a progressive tax system which means that people with higher incomes pay more in taxes than people with lower incomes.

There are six different types of taxes: income, capital gains, estate, sales, payroll and excise taxes. Income tax is the most common type of tax in the United States and is based on how much money you make each year. Capital gains taxes are based on how much profit you make from selling assets like stocks or bonds. 


Fisher Stone Tax Accountant Of Brooklyn P.C. 88 Suydam St Ste. FS, Brooklyn, NY 11221 (347) 763-6286 https://fstaxaccountantbrooklyn.com/