The Top Three Tax Tips for Entrepreneurs
February 27, 2007 (Press Release) --
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.”
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Evan's website, http://www.evancarmichael.com/ is the world's #1 website for small business motivation and strategies.
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.”
###
Evan's website, http://www.evancarmichael.com/ is the world's #1 website for small business motivation and strategies.
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