Death & Taxes (part 2)
Wednesday, March 11th, 2009
Taxes are a much maligned responsibility of business owners, primarily because the offices responsible for collecting them do not make the process at all user friendly. While no one wants to pay taxes, they do want the services rendered from their collection. Another issue that I believe should get a small mention is, contrary to popular belief, tax collection is legal and there are plenty of people who have been incarcerated who will attest to this. Whether you agree or disagree with the premise, taxes are what you have to pay when you make money, personally or as a corporation. The important thing to remember is that you only have to pay what you owe, and there are many things you can do to reduce your taxable income. As I have stated before, I am neither an accountant nor a tax lawyer, nor will I pretend to be. What I am is a business advisor, and if your earnings allow it, finding a good accountant is an excellent investment. They will frequently save you more than they charge you, yielding a net positive for your business.
In my opinion, the best way to find a reliable accountant or bookkeeper is through word of mouth. Talk to other business owners, see who they use and then meet or interview those people they recommend. Pretend this person is going to be your doctor; you need to feel comfortable with them. They will be vital in keeping your business healthy. Trust your gut, if someone makes claims that you find questionable or they simply give you an unsafe feeling, keep looking.
Why should I pay my hard earned money to an accountant when I can do my own taxes?
Simply put, the fees you pay to an accountant or tax preparer are tax deductible, and they are better qualified to find deductions you do not even know about. Going back to the idea that you have only two things to invest, time and money, while they are working for you, you can be working on making more money or spending time with family and friends. I cannot stress it enough, whenever able and prudent, it is wiser to let a professional handle some of your business workings so you can manage the part that makes you money.
Another avenue for information is the tax collection agencies. They frequently offer classes or lectures that explain how to figure taxes owed, payment methodology, and answer questions regarding situations specific to your company. Typically these services are free, and are designed to help you fulfill your obligation correctly and with as little error as possible.
Remember, these payments support all kinds of services from the police officers and fire-fighters who protect yourself and property to SBA programs that help small businesses with loans, putting money into the economy. It is the cost associated with being able to follow your dreams. Most successful business owners will agree it is a small price to pay.
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