As a roofing contractor, you not only have to worry about the physical labor and materials needed to complete a job, you also have to keep track of the finances. This can be pretty difficult, especially if you still have workers on your payroll.
It's important to have a clear understanding of your accounting so that you can keep your business on the right track. Here is a list of a few crucial tax tips for roofing contractors.
Pay Your Taxes on Time
This is one of the most important accounting tips, yet it's often overlooked. As a roofing contractor, you're required to pay taxes on the income you earn from your business. This includes federal, state, and local taxes.
If you don't pay your taxes on time, you could face serious penalties, including interest and late fees. The IRS could also come after you for taxes owed. In addition, you may also need to deduct taxes from your employees' paychecks, depending on the state you live in.
You need to stay on top of your taxes so that you don't end up owing more money than you can afford to pay. You can talk to your accountant or tax preparer about what you need to do to comply with tax laws. Make sure you set aside money each month to pay your taxes. This will help you avoid any penalties or interest fees that may accrue if you forget to pay what you owe in taxes.
If you're not sure how much you need to set aside, speak with an accountant or tax specialist. They can help you estimate your tax liability to make the appropriate payment each quarter or at tax time.
Take Advantage of Deductions
As a roofing contractor, you can deduct certain business expenses from your taxes. However, you may not be taking advantage of all the deductions available to you. For example, you can deduct the cost of materials and supplies used for your roofing projects. This includes tar paper, nails, shingles, and anything else used to complete the job. You can also deduct the cost of any tools or equipment you use for your business, like ladders, scaffolding, and power washers –– basically, the expenses you incur to do your job.
In addition, you can deduct the cost of advertising and marketing your roofing business. This includes the cost of designing and printing business cards, flyers, and other marketing materials. You can also deduct the cost of online advertising.
Keep track of all your business expenses throughout the year to take advantage of these deductions during tax time. An experienced accountant can help you identify which expenses are tax-deductible so that you can save money on your taxes. Keep these tips in mind when looking for accounting for roofing contractors services near you.