The main quarterly accounting tasks for small business owners are related to taxes. State, federal, and local bureaus require some quarterly tax information to keep track of your business and collect on taxes you may owe. This can be a benefit to your business if you’ll have a high annual balance. By breaking it up into quarters, taxes are paid over shorter periods of time which makes the due balances lower.
For individuals, federal taxes come once a year. For small businesses, federal taxes are one of their important quarterly accounting tasks. Every quarter, make sure to file IRS Form 1040-ES to report on social security, medicare, and income taxes. You will need to divide by 4 to calculate your quarterly taxes. The April tax season can’t be ignored, though. File your annual taxes like normal and pay the balance that wasn’t covered by your quarterly reports, if any.
Every state tax is different, but small business owners usually need to pay state taxes quarterly. These account for sales tax, property tax, and other related expenses. Since each state has different rules and regulations, make sure to seek information on which state taxes need to be filed and whether it needs to be added to your quarterly accounting tasks so you never miss a report.
Federal, state, and local payroll reports are due quarterly. As always, each state is different so get some guidance on what’s expected of your business based on the state it operates in. The same goes for the locality. Check on local laws to see what taxes are due quarterly, if any. And get acquainted with the appropriate forms and procedures. These reports offer a rundown mainly on employee wages and taxes.
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