Why do you think tax season creates more headaches for small businesses?

Tax season creates headaches for small businesses

• “The average business owner is more worried about their day-to-day operations.” Here’s a look at some lessons small business owners learned: Using software wisely When Christina Divigard started an advertising agency, she bought accounting software and began keeping the company’s books herself.
• For example: “How do we categorize new furniture – do we write it off or depreciate it? What amount of an owner’s health care costs is deductible?” Finding the best help Diane Hamilton, though, has struggled to find an accountant who’s a good fit for her company, which makes computer and phone apps.
• Trying to hold costs down Brad Chandler estimates it costs his real estate company $70,000 a year to compile returns for the federal government and for Maryland, Virginia and Washington, D.C. That’s a five-fold increase in five years.
• Having a system that is correctly set up has reduced the chance of errors, and even if Divigard has to do repair work, “now it takes me a day rather than two weeks.” Keeping up with the changes Complying with tax law revisions can be hard even with a bookkeeper and accountant, Barbara Karpf has learned.
• “That way, we don’t have to scramble at the end of the year,” says Sweeney, owner of MyCorporation.com, a Calabasas, California-based company that helps businesses incorporate online.

Source: Florida Realtors