Most small-business owners feel stressed when it comes time to do their taxes, according to a new survey.
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Stress levels can get so high that 60% of business owners indicated they would rather get a mullet or remove a nest of angry bees, hang out with their mother-in-law for a day, undergo a root canal, or even lick a pole on the subway instead of doing their taxes.
It's no surprise that 43% of American small-business owners procrastinate when it comes to tax preparation, and over 70% said they are not using modern accounting software to help manage their businesses' finances. One-third of respondents rated "everyday accounting tasks" at or near the top of a list of things they avoid doing at work, including cold calling, scolding an employee or dealing with a terrible customer.
Business owners are also worried about scrutiny from the Internal Revenue Service, with 43% admitting they're worried about being audited. Despite those fears, only 32% said they plan to work with a tax professional this year.
"If you'd rather handle angry bees or risk getting sick by licking a subway pole than do your taxes, it's time to look for solutions," said Reconciled CEO Michael Ly, a FreshBooks partner and member of the FreshBooks Partner Advisory Council, in a statement. "Yes, taxes are a pain, but that pain can definitely be soothed by using the right tools and resources."
FreshBooks analyzed the behaviors of small-business owners that correspond to less tax-time stress and suggested these top five tips:
- Set aside time to work on your taxes;
- Set aside or secure enough funds to cover your tax liabilities;
- Create and implement a tax plan or strategy, ideally with an accounting professional who can help you make the best decisions for your business all year;
- Brush up on the latest changes to the Tax Code; and,
- Keep your personal and business finances separate.
