Because the IRS Doesn't Like Slackers - Ten Ways to Beat Small Business Tax Procrastination
By: Ron Finkelstein | Posted: 27th March 2009
Preparing taxes seems complicated but this guide to tax deductions will go a long way in clearing a lot of confusion and putting things in perspective. So if you are among those who procrastinate endlessly to prepare a tax return for your small business, take a look at the guide and it you'll find that it isn't so bad after all... you might just find the energy and drive to get your papers ready in time!
Clear the Calendar: One of the most common reasons people procrastinate is because of lack of time. Examine your schedule and select one day that will be dedicated to filing your taxes. If this requires closing the business or using additional employees on that day.
Hire a Bookkeeper: If you are overwhelmed at the thought of the work involved in filing your taxes, you may need to hire a bookkeeper. He or she can assist you to organize business concerns, so that April taxes aren't such a daunting thought.
Take a Trip to the Spa: An overlooked way to increase productivity is to reward yourself when you accomplish a tough task. Rewards to consider might include a day at the spa, a massage, a family outing, or any other reasonable thing that will help motivate you.
Use Tax Software: Computer software helps automate some of the more routine and tedious aspects of tax preparation. There is a variety of programs available, most of which would have all the forms available that you need to prepare your return.
Find an Accounting Professional: The complexity of the financial issues your operation faces will increase as your business grows. Having the right help with your accounting and finances can save you hassle, frustration and mistakes. Accounting professionals can even provide more general business advice such as handling cash flow issues and tax tips.
Remember to Pay Yourself: Here's an easy way to determine just how valuable you are to the company: For the fiscal year, calculate your profit after expenses, then divide the figure by the number of hours you worked. This determines your hourly pay rate. Then, determine your tax refund divided by the number of hours that are required to finish the return. If this amount works out to more than or the same amount as your hourly rate, it will likely be enough to motivate you to prepare the tax return.
Ask for an extension: Most heads of small firms don't have any spare time. However, putting off filing can bog you down in guilt, so that you don't really derive much benefit from putting potential filing time into other company business. Consider asking the IRS for an extension.
Enroll in a Tax Preparation Course: Delay often results when people don't understand requirements. Taking a day-long course in preparing taxes for small businesses may assist you to feel more knowledgeable and confident. The IRS and several other partner organizations offers a free workshop online for small business owners. Some of the topics that are discussed include revenue, expenses, electronic tax filing, recordkeeping, employment taxes, and other issues.
Is it time for a CFO? Quite possibly. Business nowadays seems to require more expert finesse in this particular field than an accountant could advise you on. But the question also remains: When exactly is it most apparent that a Chief Financial Advisor truly necessary? It may be time when the management team needs to be regularly involved in making financial decisions. If the desire to offer company stock, or an extensive capital amount publicly is deemed important, then a full-time CFO might be necessary after all.
Progress Gradually: Think back on when you first created the business. You might never have gone through with this enterprise if you had known then how much you had to do to get underway. Take baby steps. Open with a simple chore like making a useful set of rolodex cards and go on from there.
Tax time is never a fun time of year, but the pain created by procrastinating the completion of your tax return is worse. Take that burden and unnecessary guilt off of your shoulders by getting it done without delay and decreasing your April stress level in the process.About the Author
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Tags: general business, frustration, rewards, complexity, hassle, computer software, fiscal year, lack of time, business concerns, bookkeeper, tax return, tax deductions, tax software, business advice, family outing, tax preparation