Small business owners collectively tend to dread tax deadlines because they share many of the same issues that larger companies might not have.
Your free time, organization, dedication to taxes and available cash all factor into your fear. Let’s look at each element individually:
- Time – You probably feel like you don’t have enough time to dedicate to your taxes.
- Organization – You likely don’t maintain accurate records and keep them organized throughout the year. When it’s time to file your taxes, you don’t know where to start, and it makes the process more stressful than necessary.
- Dedication – It’s hard to make tax management a priority when you’re trying to run your business at the same time. Meeting tax deadlines without stress takes a consistent dedication to maintaining your taxes, but many small business owners don’t give them the attention they truly need.
- Money – Even if you make tax management a priority, you still must be able to pay them on time. Cash flow problems are another prevalent issue for small business owners, and it clearly accentuates tax problems.
Meeting tax deadlines depends on your ability to complete your reporting, file on time and pay what you owe. Tax requirements and processes differ between states, but no matter which state you file in, there are universal steps to take to stop stressing every deadline.
The Fundamentals Of Streamlining Your Tax Management
Most small business owners acknowledge that they don’t have tax expertise. Despite this recognition, few actually take the necessary and fundamental steps to streamline their tax management and processes. These baseline steps are key to meeting your tax filing deadlines without unnecessary stress.
Work with a small business tax consultant year-round
You have many tax deadlines throughout the year. March or April 15th aren’t the only dates to remember. You must also adhere to monthly, quarterly and annual deadlines. A tax consultant with small business experience helps you determine your schedule and tax requirements to streamline your management.
Many small business owners just don’t have the time to handle all of their tax responsibilities on their own. You’re too busy running your business. But putting taxes on the backburner puts you in a less-than-desirable position when tax deadlines are approaching. Make taxes a year-round priority.
Always seek help if you’re unsure or unable to do something
If you’re using software to manage your bookkeeping and come across something you don’t know how to address, ask for help sooner rather than later. If you address these issues in a timely manner, you don’t have to spend time later gathering records.
And, of course, leaving issues unaddressed is a potential recipe for late filing and other tax penalties.
You must make taxes a priority. State audit programs target businesses that make frequent filing mistakes. You simply can’t afford to make these mistakes.
Working with the right small business tax consultant helps you to meet tax deadlines and focus more on your operations.
In next week’s blog, we’ll outline more detailed steps on how to streamline your small business and stop stressing about your tax deadlines.