Tax Accounting for Big NYC Business
The Internal Revenue Code (IRC) is an ever-growing and ever-changing entity, with new material added or changed all the time, and for big business in New York City, trained and specialized professionals are needed so a company can handle its finances and tax returns with precision and care. Accounting firms in Manhattan, and in other high-profile places, can get the job done and save major headaches, not to mention expenses, for client companies. These businesses can also make use of bookkeepers to relegate certain jobs to experts on the payroll and keep things running smoothly.
There is a lot of tax information abuzz in New York City, from Manhattan to Queens, and the numbers for high-income individuals and companies are staggering. Property taxes, just to name one, are a major factor for these business to keep track of, and accounting firms in Manhattan can be hired to handle this job. In fact, in the 2017 fiscal year, no less than 45% of of all tax dollars collected in New York City were from property taxes alone. And every year, the Department of Finances will collect just over $35.8 billion in revenue for NYC. Personal income is more variable, ranging anywhere from 4% to 8.82% as of 2017. So, with all this tax information out there, it is clear that a business could stand to find accounting firms in Manhattan and make use of them. A real estate accountant or personal tax accountant could also be very helpful for higher-income individuals, and save them the trouble of tackling this chore alone.
The Tax Accountants’ Job
According to Master of Finance, a tax accountant’s job, stated broadly, is to understand, research, interpret, and translate the IRC for others’ benefit. Often, an entry-level accountant will join a firm, then get to work filling out a business’s or individual’s business tax returns, and at a smaller firm, calculate a business’s earnings, complete necessary documentation and give statements to their clients that summarize tax liabilities. At a larger firm, however, an accountant may specialize in just one of these areas instead, such as focusing only on a client’s earnings or tax return paperwork for a tax estimate. A personal tax accountant, similarly, may fill out similar work for a high-income professional’s earnings. The trade-off here is that an in-house accountant will understand a broader depth of tax law for a business, as opposed to a specialist, but will not have a fully realized understanding of any one area of this work. A more experienced accountant may have the option to deepen his/her knowledge of one aspect of accounting specialize in it.
Accounting firms in Manhattan may also provide the services of senior accountants, who do less tedious work of newer accountants and instead work with a client on financial strategy. They can act as consultants for the client and create financial plans for the future, and may also use their expertise to minimize a client’s tax liabilities. What is more, since tax law is ever-changing, a senior accountant can and will keep track of those developments so the client does not have unexpected (and unwanted) tax liabilities.
A similar role of a tax accountant is that of bookkeeping services. According to Bench, a bookkeeper keeps track of daily expenses and purchases in a company, or simple data entry. This keeps the company’s finances clear and accurate, and once it is time for taxes, a bookkeeper can hand this information off to an accountant, who will handle the tax returns. A bookkeeper may also maintain a balance sheet, a complete summary of the company’s finances at any one time. They have a number of other services, anything from issuing financial statements to maintaining the annual budget. Once all that is handled in New York City, for example, accounting firms in Manhattan can take care of the rest.