Just enough tax knowledge for a small business
Scrappy entrepreneurs face dilemmas regarding how to spend their time. So many things to do, so little time.
The bottom line is that we’re most successful when we invest our time in satisfying our existing customers or finding new customers. Everything else is just “admin time.”
When it comes to taxes, we need to know enough to plan the general direction of our business and to ask our accountant the right questions. Bear in mind, I’m the first one to step forward and say that we, as entrepreneurs, should pay every dollar of taxes that we legitimately owe. Beyond schools and social programs, our taxes pay for the body armor and training that keep our troops alive and able to accomplish their missions. Taxes are our civic responsibility. Back to my blog entry…
If possible, set aside an hour or two a month for professional development specifically related to taxes. It’s not effective to run your business based on tax considerations. By learning about tax policies year round, you’re much more likely to be able to focus on your business while not doing anything “silly” from a tax perspective.
Where to spend your hour or two?
The US Internal Revenue Service (IRS) is trying its best to create content specifically targeted toward small businesses. The Small Business Training Network (SBTN) offers extensive FREE online courses on small business taxes (also available in Spanish). Check out the Small Business and Self-Employed One-Stop Resource. Look at the IRS portal for Self-Employed Individuals. And, definitely subscribe to the FREE IRS e-News for Small Businesses.
If you don’t already subscribe to Kiplinger’s magazine, read the online Kiplinger Tax Center.
Finally, read a good finance blog like The Finance Buff. He covers a broad range of finance topics - and, if there’s something he hasn’t covered yet, add a comment on his blog. He’s on top of these things!
Don’t ignore taxes. Don’t focus on taxes. Grow your business!
All is well.
