Does the thought of preparing your small business tax return leave a feeling of guilt? Are you waiting until the last minute for some inspiration? Wait no longer. Your About.com Small Business Information Guide has put together 10 motivators to overcome your tax procrastination habits.
Free Your Calendar: A big culprit to procrastination is time. Take a look at your schedule and block out a specific day as tax day. If you need to close shop or get help to free your time, do it.
Contract a Bookkeeper: Being overwhelmed by the amount of work to complete your small business tax return might suggest the need for a bookkeeper. A bookkeeper can help you organize your business, so every April your tax matters are easier to deal with.
Get a Massage: When faced with an unpleasant task, a good motivator is to add a pleasurable reward. Choose a reward like a day at the spa or quality family time to boost your motivation to start your small business taxes.
Use Tax Software: Tax software can automate many of the routine calculations of your tax return. Many software programs come complete with all the necessary forms to ease the burden of tax preparation.
Find an Accountant: As your small business grows in revenue and complexity, an accountant can help you avoid costly mistakes and frustration. A specialist can aid in other areas such as cash flow planning and providing practical advice.
Hire Yourself: What are you worth to your company? Calculate your earnings over the last year and divide by the time worked to get your hourly rate. Now estimate your tax return dollars divided into the hours to complete your return. If your figure is higher than or equal to your hourly rate, it should motivate you to start your tax return.
Get an Extension: Time is a rare commodity for most small business owners. Your tax procrastination may add more pressure and little time to your business. Consider filing an IRS Extension of Time to File Your Tax Return form.
Take a Tax Course: A lack of understanding often leads to delay. A one day course on small business tax can provide you with more knowledge and confidence. Consider the free IRS Small Business Workshop available online or through various partner organizations. Topics covered: recordkeeping, income, expenses, employment taxes, electronic filing, and much more.
CFO Time: It is possible your small business has outgrown the accountant as an advisor stage of your business. How do you know you need a Chief Financial Officer? When your executive management team is dealing with financial decision-making on a regular basis; it may be CFO time. If you are planning to raise large amounts of capital or go public in the future, then a CFO part or full-time may be required.
Start Small: Remember back to your company start-up. If you thought of all the tasks to start, you probably would have been paralyzed with fear. You succeeded by taking one step at a time. Apply the "start small" tactic to your tax preparation. Start with a simple task such as organizing your files and build from there.
Tax time will not make your top ten list of fun things to do. However, the pain of putting it off may be greater than actually doing your small business tax. Free your mind from the guilt of procrastination and reap the reward of less stress this April.
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