In this article we’re going to look at the top four mistakes business owners make to wreck their taxes.
But first, if you haven’t heard yet, the deadline to file personal taxes has been extended to May 17th. If you are stressed about what effects COVID and a slow 2020 might have had on your taxes, now is the time to address it. Let’s answer your tax questions and give you some peace.
Anything you received last year – from the PPP, various stimulus payments, and so on – was a fluke that you couldn’t plan for. You shouldn’t let this worry you.
What we really need to do is determine the things that happened last year that always seem to happen. At least in terms of taxes, timing, and payments – and make a plan for them to reoccur in 2021.
4 Mistakes Business Owners Make
In our office, we see business owners make a lot of mistakes. Here are the biggest ones:
- Poor planning in respect to growth.
- Little or no thought given to partnerships or distributions.
- Owners who refuse to pay themselves a salary and keep taking money from the company in ways that wave red flags.
- Account mixing with no documentation as to where monies originate and where they move to.
Are you guilty of any of these mistakes business owners make? If so, you need to make some corrections. Let’s get together and create the bookkeeping and accounting systems and processes that will make life easier and far more cost effective for you. From both a tax preparation and monthly bookkeeping perspective.
The total amount of work needed to handle a year’s worth of business accounting might seem the same regardless of whether you do it in one dramatic flurry of activity in the Spring or you dedicate time each week or month to handle it.
…But the truth is, the amount of time it will take to do this work will only get worse if you wait.
Handling Duties Monthly
By handling taxes and bookkeeping duties monthly, you limit the number of accounts and statements you have to look at. So, the chances of making a mistake are far lower, and the volume of entries to do is far less.
As a result, you and your team can keep things organized. And easier by eating the elephant one bite at a time instead of trying to do too much too late.
Are You Sick Of Scrambling And Paying Too Much?
If you’re sick of scrambling and tired of paying too much, then TODAY is the day to make time to get organized and set up your accounting and tax payment systems for 2021. You’ll be faster, more accurate, and likely spend far less money to have better results.
Go ahead and schedule a call for us to see how easily you can create systems to make life easier!
