Our Logo

Finance Software


Financial Software

Financial Advice


About Us

Contact Us

Site Map


Financial Advice
Credit Report
Financial Freedom
Financial Planning
Help Tax
Help With Investing
Identity Theft
Financial Software
Accounting Software
Tax Software
Investing Software
Historical stock Quotes
Portfolio tracker
Stock market chart
Stock market tools
Stock picking software
Personal Financial Software
Debt management solution
Home financial software
Personal budget software
Real Estate Software
Buying home
Foreclosure listing
Real estate analysis
Real estate development
Real estate management
Realtor software
Selling property
About Us
Contact Us
Site Map

The Tax Connection: Small Businesses and Tax Time

Author: L A Parmley

Iím sure youíve heard the daunting statistics that only 1 out of every 5 businesses makes it to their 5th year. But do you know why this is true?

While I can only speculate, I have heard one of the biggest reasons for business bankruptcy is taxes.

The problem is a cyclic one. The owner starts making money hand over fist, and of course, spends it just as quickly. Money comes in and goes right back out. Sure, putting money back into your business is necessary, but you must manage your spending wisely.

Remember, the U.S. government takes about one-quarter to one-third of our income. Plant that firmly in your mind! As a self-employed individual living in the U.S., it will probably be closer to one-third. So it might be best to just set aside one-third of your income for the tax man. If it turns out itís a little less, then youíll have some extra cash.

In other countries, this number may actually go up to as much as one-half to two-thirds of your total income. Isnít that why we all love socialist economies?

All joking aside, the point is, if you spend everything you have, you will not be able to pay your taxes come tax time. Obviously, you donít want to get yourself in the position where you owe $10,000 or more (especially if you already spent your profits) all at once.

The best way to avoid this frightening situation is to spread your tax payments out. Monthly is best, but quarterly is a great start. A good accountant will be able to help you estimate what to pay based on what youíre earning. That way, your taxes are spread out evenly throughout the year.

So remember to factor your taxes into your overall financial situation before itís too late!

Would you like to learn how to start increasing your profits by creating a unique image for your small business or professional service? Discover how by visiting Positioning Tactics and sign up for our free ecourse (Value $37)

See Also: Help Tax, Financial Software, Financial Advice

Think Outside the BLOCK! - TaxBrain.com
Click Here For The Wall Street Journal
Daily Deals at FranklinCovey.com

IQ Charts
Home About us Links Site Map News
Free Financial Advice Accounting Software Personal Financial Software Investing Software Real Estate Software
Copyright 2009 - All Rights Reserved