4 Tax Challenges SMBs Face
There are some essential components that every CRM should include. Most customer relationship management systems include everything a company needs for building strong relationships with its customers. These elements include contact information, communications, purchase history, and lead management. CRMs typically offer analysis techniques so that teams may pull reports and compare goals to results.
Disorganization has a huge impact on a company’s profitability and its approach to tax season. For example, only 23% of struggling or failing businesses describe their workplace as organized, versus 53% of thriving SMBs. Not only does lack of organization have a negative impact on a company’s productivity levels, but it also affects taxes.
2. Confusion About Tax Rules
The rules that govern tax rules are confusing. To make matters worse, new rules are constantly being added. As an SMB owner, you may not realize that tax treatment is different for an employee versus an independent contractor, for example. There are also tax differences when buying equipment versus leasing it.
3. Lack of Management Training
Money management becomes critical when a business starts to make a profit. While some business owners are able to handle taxes on their own, many flounder and make mistakes. As a result, they miss out on possible tax breaks and legitimate write-offs. This is especially important because the complexity of bookkeeping increases with each new client. Over 40% of SMBs have consulted with a financial advisor.
4. Loss of Income Due To The Pandemic
The COVID-19 pandemic has had a disastrous effect on many SMBs. With various government and employee initiatives at play this year, tax season looks to be even more complicated.