| By 24 HOURS NEWS SERVICES
The Top Three Tax Tips for Entrepreneurs
Benjamin Franklin once said, “In this world nothing is certain
but death and taxes.” Well, it’s that time of year again
– for taxes, that is. Nobody likes to head into tax season,
but for entrepreneurs, the experience could prove especially costly.
Unless entrepreneurs take the time to prepare themselves and make
their business tax-ready, they could soon face the fate of the many
others who came – and crashed – before them.
Entrepreneurship expert Evan Carmichael used to be one of those small
business owners who dreaded filing his tax returns. “I’ve
always loved the challenges of running my own company,” he says,
“except when it came to the part about taxes.” However,
he says he has since learned that the process doesn’t have to
be a painful one. By organizing himself and putting in place the proper
groundwork, Carmichael has ensured that he won’t ever get quashed
under the crunch of tax time. “Now,” he says, “the
period just breezes by.”
For those entrepreneurs who still struggle to get through tax time,
Carmichael has three tips that will help ease the burden. First, he
says, don’t think of paying your taxes as a one-time annual
event. “Much like entrepreneurs need to make human resources
a consistent part of their business plan so as not to get caught off
guard when an employee quits, so too do they need to incorporate taxes
into their annual strategy,” suggests Carmichael. “By
and large, it is those companies that don’t keep good records
throughout the year that suffer when it comes to tax time.”
Whether it’s done by hand or through the use or various software
programs, and whether entrepreneurs choose to do it themselves or
use outside consultants, getting your records in order is just the
first step.
Second, suggests Carmichael, is the need to understand what it is
exactly that you are filing – specifically, what small business
can and can’t deduct from their taxes. “Purchasing new
office supplies that you will need in the future or contributing to
a retirement plan can both help maximize deductions for this year,”
he says. “But other attempts at reducing your taxes might not
be so valid. It’s important to know the difference so that you
don’t have any hassles down the road.”
The third tip that Carmichael suggests to help entrepreneurs experience
a pain-free tax period is to assess your filing process from the year
before. Was there something you spent far too long looking for last
year? Can some part of your operations be amended to make things just
a little bit easier in filing next year’s taxes? “It is
important to pinpoint where exactly entrepreneurs are encountering
the most stress and to attack the cause at its root,” says Carmichael.
“If something is making your tax life harder rather than easier,
it’s time for a change.”
In running your own business, things never go exactly as planned;
sales might not rise as much as expected, a new marketing campaign
might not bring in as many customers as you had hoped. Taxes, says
Carmichael, are something you can – and must – prepare
for: “Don’t get caught off guard. Take the time to make
sure your business is as tax-ready as it can be.”
For more information see www.evancarmichael. com. |
