Tax may be a patriotic obligation, but for an entrepreneur, it has its consequences. As a small business owner, you hardly have time for activities that don’t contribute to company growth. As a result, spending too much time on accounting and taxes for a small business is not the best scenario.
For small business owners, there’s never enough time to run the business. Adding the process of searching for receipts and tax-paying is more stress. Furthermore, the expertise required to pay taxes may be absent, leading to more time-wasting. In this article, we'll discuss the time wasted on tax administration by entrepreneurs and viable alternatives you can try.
THE AMOUNT OF TIME A SMALL BUSINESS SPENDS ON ACCOUNTING AND TAX
Ordinarily, the time for tax is one of the most stressful times for an entrepreneur. Statistics from a non-profit, SCORE, reveal that 40% of business owners think tariffs are the worst part of business ownership. The research also shows that many small business owners spend about 41 hours weekly on tax and accounting. Now, for a focused entrepreneur, forty-one hours weekly is too precious to be wasted.
In a situation where your business deals with many invoices, the number of hours may double. More so, taxing goes beyond figures and receipts - some experience is required. So, you don’t have time and expertise, which makes you prone to costly errors. For this reason, it’s advisable to hire the team at Hall Accounting Company.
WHY DO BUSINESS OWNERS SPEND SO MUCH TIME ON ACCOUNTING AND TAX?
There are so many reasons why entrepreneurs waste time on Accounting and Tax.
Running a business needs full focus, and so does accounting and tax. Balancing both tasks well is nearly impossible. That will only increase the time used in completing both tasks.
LACK OF EXPERTISE
One misplaced figure in accounting or tax can lead to a significant change in tax burden and potentially an invasive audit. Without adequate tax education, you’ll waste time trying to understand and crunch the numbers.
Because of how tedious accounting and tax work is, the average entrepreneur always stalls the task. In turn, this will only waste more time and energy in the future.
EFFECT OF WASTED TIME
If the only impact of taxes was your time, then that’s still fair. But there are a host of other effects this can have on your business. They include:
- Extra Cost
- Business Destabilization
- Legal Risks
The disadvantages of handling business tax yourself outweigh the advantages. Besides, an entrepreneur can’t afford to spend hours settling accounting figures. Your best option as an entrepreneur is to employ professional accounting services.
Don’t hesitate to reach out to the team at Hall Accounting Company for help. Please reach out to Josh Hall at Josh.Hall@HallAcctCo.com or Jeremy Hall at Jeremy.Hall@HallAcctCo.Com for more information. From tax filing strategies to tips on bookkeeping and accounting, we’ve got you covered.
FUTURE IMPORTANT DEADLINES
Estimated Quarterly Tax Payment for 2020 Tax Year Due
IRS Deadline for Quarterly Estimated Payments for 2020 (Form 1040-ES)