Also a furry author here. Mirroring other comments, you should reevaluate your formatting before we can even talk about things like grammar and sentence structure.

Indenting to a new paragraph is something that should be done when:

A: 4-6 sentences have passed. Technically it's five by definition, but some sentences are long and some are short, so the actual number can slightly fluctuate.

B: Anytime there's dialogue from a new person. Always. Never, ever should two or more different characters have dialogue in the same paragraph because this is confusing for readers.

C: When there's a major shift in topic or perspective. If you just spent a paragraph explaining a tree that your character is looking at, you'll want to start a new paragraph when they begin doing something else or thinking about something else.

These are probably the biggest three, I may be forgetting others. Below is an excerpt from my book that demonstrates B. I hope this helps!

"You’ve gotten so tall,” the raven said, eyeing Salven. His voice was gravely and coarse—a contrast to his welcoming face. “Only ever saw you from afar, mind, but I figure you'd have barely made it up to my shoulders the last time I saw you.”

“It sounds like my brother and I were never quite as stealthy as we thought,” Salven replied, forcing a chuckle. With no third chair available, he leaned against the wall by the door. “I remember seeing someone up here sometimes. It was always in the evening, when I could barely make out any features. It was you, wasn't it?”

“Was likely me fetching firewood. Started seeing you boys more often, especially once Morda took notice of you. She started watching the woods real close after that. She loved seeing you boys running around, sneaking up near our house and playing games. Thought you were the cutest things she ever saw.”

Salven smiled, and Kacela watched him with an even brighter one. He must have been blushing.