“It was the best of times, it was the worst of times…”*
For a small business owner, the best of times could be when customer engagement is at an all time high. Or when a new hire exceeds expectations. Most likely, the best of times is when net income exceeds net expenses.
And the worst of times is dealing with taxes.
According to SCORE, a nonprofit resource partner with the U.S. Small Business Administration, 40% of small business owners say bookkeeping and taxes are the worst parts of owning a small business.
While we all have experience paying individual taxes, learning how to manage small business taxes requires a new skill set, initiative, and a concerted effort.
However, a large part of your fiduciary responsibility as business owner is your tax obligation.
As David Manson, co-owner of Blackrocks Brewery in Marquette, Mich., states in the following Northern Initiatives Small Business video entitled Taxes, “No one is going to give you a free pass.”
To learn how to pay your business taxes, you need to know or learn about:
- small business accounting
- the legal structure of your business
- your tax requirements
Want an upside? Understanding your tax obligation may make you less susceptible to overpaying. Experts in the field agree that small business owners often overpay – for many reasons, including because they don’t take advantage of deductions.
Managing business taxes is a time-consuming, complex task. Unless you are a small business tax expert, reach out for support from registered tax advisers.
Finally, be forward-thinking. Planning and preparation all year ‘round – not just during tax season – will help you find and hold onto the best of times.
*Charles Dickens, A Tale of Two Cities, 1859
