Dave Thomas

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Avoid Being Taxed Over Financial Issues

Dave Thomas

October 12, 2016

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Operating a small business comes with a lot of responsibilities, one of which of course is making sure you stay financially strong.

Whether you’ve been in business for many years or you’re the new kid on the block, financial sense is imperative. Without it, you could find your doors closed much sooner than you would have hoped. When it comes to being financially savvy about running your small business, the margin for error is oftentimes minimal at best.

That said how would you rate your financial senses? Would you say they are as good as they can possibly be? Do you feel like you can always do better when it comes to managing your company’s finances? Have you gotten the sense that you might need some financial expertise on your side? Would a tax attorney be the answer to your problems?

If finances are not your strongest suit, the time may have certainly arrived for you to rethink your financial goals as a business owner. Worse yet, if the Internal Revenue Service (IRS) has been a thorn in your side, has the time come to act?


Don’t Wait Until it is Too Late

So that you can go into 2017 brimming with confidence (at least that is the plan), take time now to assess your company’s financial well-being.

If your small business has been struggling this year, has your tax burden played a major role in that issue? In the event it has, the time to work with a New York tax attorney or one closer to where you reside, get the ball rolling.

Among the areas to focus on in choosing the best tax attorney for your business:

  1. History – For starters, how long has the attorney been in business? Does he or she have a track record of getting positive results for their clients?
  2. Personality – Even though you want the best possible attorney out there to defend you in your tax issues, personalities do matter. He or she has to have enough of a personality to consult with you in a positive manner. Keeping the lines of communication open at all times is important.
  3. Customer service – Finally, always remember that you are paying them for their services and they work for you, not the other way around. While expertise and results certainly matter, you want an attorney (and their staff) that will go above and beyond normal customer service.


Account for Any Mistakes

In the event you are finding mistakes with your company’s financials, the time to fix them is now, not when the IRS notices.

That being the case, make sure you are documenting (and receiving) all the proper small business deductions you are entitled to. Mistakes made in this area can crop up when your taxes are being assessed by the IRS.

If it seems like overseeing the company finances is too much responsibility (and time) for you, hiring a full or part-time accountant certainly makes financial sense. He or she can take a sizable burden off of your back, allowing you to focus on other important aspects of running the company.

If you do hire someone to oversee your finances during the year, be sure to sit down with them and check the books before tax season. By having more than one pair of eyes review the numbers, there is less opportunity for significant errors slipping through. This essentially gives you three sets of eyes (including your tax accountant) to review everything before the info is filed with the IRS.

Finally, be upfront about any financial mistakes made during the year (and when filing your tax paperwork). You are much more likely to get an understanding ear when stating your case than if you tried to purposefully sneak things through.

As 2016 draws to a close, will you be looking back with thumbs up or down on how you handled your company’s finances this year?


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