Perhaps the only thing that might give a business owner more anxiety than thinking about taxes is worrying that they might be making mistakes when it comes to taxes. No one likes to knowingly make mistakes, yet millions of Americans are making the same mistakes when it comes to accounting every day.
They say the first step in overcoming a mistake is to first recognize it. Here we point out the most common accounting mistakes you might be making right now so you can fix it and move on…
Not Making Estimated Payments
It’s never easy or enjoyable to pay estimated tax payments throughout the year. Most small businesses already struggle with feeling like they don’t have the cash on hand that they would like to have. Having to take what little you may have and send it off to the IRS can be a painful experience. However, it is the law and breaking this law can lead to penalties and fines. The best thing you can do is get in a habit of planning for these payments and scheduling them to go out on time.
Not Putting Enough Away for Retirement
Reports and surveys show that far too few Americans are properly planning for their retirement. This includes business owners who probably feel that every spare penny should go back into the business. According to these reports, the smaller the business, the less money is going towards retirement. It’s a trend that trickles down from the business owner to his or her employees. The truth is, putting away money for retirement is not only a good way to save on taxes, but also helps to diversify your assets. If you don’t have a plan in place, now is the time!
Not Working Accountant Effectively
It’s easy to overlook just how valuable your accountant can be to the success of your business. Not only can an experienced and knowledgeable account keep you on track when it comes to taxes, but they can share important insight into key areas where you might be able to save money or create extra cash flow. If you find that you are meeting with your accountant once a year to go over your taxes, you’re missing the boat. Schedule a quarterly meeting with your accountant to go over numbers, discuss the future and make a plan so that you are prepared for growth.
Hacker Accounting has been working with small businesses and entrepreneurs for over 15 years and are proud to offer professional accounting services that make a difference. To find out what we can do for you, call us today at 602-375-5251.