For small businesses, tax season is one of the most stressful times of the year. The National Small Business Association (NBSA) 2017 Small Business Taxation Survey found that one in three small businesses spends more than 80 hours each year preparing federal taxes, and more than one in five spent over $10,000 on the process.
But tax season doesn’t need to be such a massive headache. By marrying a thorough understanding of tax season requirements along with early preparation and a degree of automation, small businesses can ease the strain by having the appropriate facts, figures, and forms at their fingertips.
In this small business guide to surviving the tax season, we’ll tell you how to finish the tax year both fully compliant and confident about your position for the year to come.
Tracking important metrics throughout the year will give the accounting team an up-to-date picture of how the business is performing on an ongoing basis. These metrics include working capital, the company’s debt to equity ratio, and its budget variance.