There are many types of businesses in the world today and many types of stressors. No matter how big or small your business is, if you’re a newbie or a veteran, the one thing almost all business owners have in common is their tax season stress. The list of reasons for business owners’ aversion to tax season is long and varied (Here’s a little secret, we don’t like tax season either). In this article we share the top three stressors that our clients had during tax season before working with us – and our solutions.
1. “Taxes are so Complicated!”
Yes, we understand, and rest assured you are not alone. It’s easy to become overwhelmed as the forms, deadlines, extensions, jargon, and confusing software all flutter around you as your tax asks for things you don’t want to understand. And it can quickly become exhausting to business owners who would rather focus on what they love doing rather than digging through mounds of paperwork, emails, and receipts, trying to figure out how much they owe the IRS. Additionally with the tax code changing every year, it is understandable if you go away unsure about whether you got it right or paid too much.
Understanding taxes and tax strategy is difficult and just like any part of your business where you are not an expert, you want to find a qualified professional to join your team. Building a successful business is a team sport and having a tax strategist you can work with is a critical resource. Instead of beating yourself up for not knowing the best way to navigate tax season or waiting on your current tax preparer to step up, recruit a team player.
By employing a competent accountant, your tax situation will become less intimidating over time, even as your business grows and becomes more complex. By selecting the right team player, you will get the right level of detail and explanation you need so that you understand your current tax situation and how to make it better.
How we make taxes less complicated for you
This is our 3-step process.
- When we join your team, the first thing we will do is ask a lot of questions about your current circumstances and where you see yourself and your business in the future. The most important thing we can do is help you reach your goals and objectives. A solid tax strategy must support that outcome.
- We create an annual tax projection and plan. Understanding how much you may need to pay a year in advance is liberating. Instead of saving money, because you are afraid of not being able to pay the tax man, you are now able to take advantage of opportunities to expand your business or take a holiday.
- We meet with you throughout the year, so that we understand what is changing in your life and how those changes might affect your tax bill. We use 12 months of planning and collaboration to help you get the most out of your money, business, and efforts and go into tax season with no surprises. Also, because it is a year-round process, you will not be running around at the end of the year, trying to get all the tax deductions you can find. This way you have more time and energy to dedicate to the parts of your business and life that really drive you.
2. “I’m just not organized.”
Having an organized business is hard but it can be one of the biggest benefits to your growth and revenue. How many business owners do you know that have a dedicated receipt pile in their office that they will “one day” get to? It’s easy to get behind on the day to day and not realize it until tax season. And being unorganized at the beginning of tax season is not a state you want to be in. It only adds to the complications and stress, especially because you still have a business to run.
By establishing a system and staying organized day to day, you will see many benefits, not just during tax season, but throughout the rest of the year as well. Some benefits are:
- You will know where your files and documents are when you need them the most.
- You will better understand the profitability of your business and be able to make better decisions.
- You’ll have a better idea of how much the tax bill is throughout the year. You will still need a solid tax projection though.
Organization is our middle name
The #1 method for good organization is to find a great bookkeeper that will work with you to stay on top of your paperwork. In addition to helping you to find a good bookkeeper, we can also help you stay organized by:
- Quarterly reviewing your existing bookkeeper’s work, so you are comfortable knowing that your financial records are accurate and up to date.
- Providing access to our data vault system, where you can upload all your important data and documents as they are received. This includes a phone app that will convert your documents into PDF and store them with ease, ensuring your documents will be there waiting for your tax return to be completed. This portal also provides access to your previous tax returns and other important documents that you need to get a loan, set up a new bank account, etc. How much time and frustration will you save using our data vault?
3. “I don’t want to get in trouble with the IRS.”
Enough said. There are many concerns business owners have when it comes to dealing with the IRS. Have any questions? You could be on the phone for hours. Submit the wrong documents? You might pay big fines. Will I get audited? Will I have to pay penalties? What if I can’t get all my information together by the deadline? These are some common concerns of business owners when dealing with the tax man.
Another complication the IRS brings to the table is change. Tax laws and regulations are constantly changing and being updated. By itself the IRS and its many forms and fines can be threatening enough. However, when you add the ever-changing tax landscape things become more complicated and stressful.
Don’t ever talk to the IRS
Yes, you read that right. In our opinion you should NEVER have to deal with the IRS as a business owner. You probably don’t know what they want, so there is a tendency to overshare and that just allows the IRS agent to expand their inquiry. Also, there are better uses for your time and you definitely don’t need that kind of stress. At Ascent CFO & Advisors we talk to the IRS for you. Which means no more waiting on long phone calls or using a dictionary to look up legal and financial jargon you hear once a year. Instead of wasting your time with the IRS, you can be making money and growing your business. We understand the jargon and legal-ese and make the phone calls so you don’t have to.
Tired of the Stress? Want a better tax season experience? Don’t wait until December to make a change.
Schedule a Free Consultation today and get on the Path to Profit™ by saving on taxes.
