Good day Pearls,
Now that the holiday season has come to an end our next big endeavor is TAX TIME! Of course, tax time tends to overwhelm the best of us but fiscal responsibility for business owners and individuals should not be frightful as long as you are preparing yourself accordingly.
Though you may be quite familiar with filing your own taxes, don’t assume you are an expert with your small business tax responsibilities. In 2020, Pearls are Financially Strong, Resilient and Luminous. We, women small business owners need to ensure that we are rendering our businesses/side hustles healthy in all fiscal avenues. To prepare for this blog entry, I took the opportunity to speak with a Certified Public Accountant in the DC Metropolitan area with over 20+ years of experience to give some pointers on keeping your hustle solid and fiscally sound.
Mr. Robert L. Waller, CPA/CFE, was eager to provide direction for Women Small Business Owners on a few questions regarding responsibilities to the IRS and corporate financial health.
Understanding Financial Health is Being Strong
- Nacr3: Mr. Waller, how would you recommend women small business owners (WSBO) increase their tax literacy to ensure improved and stable financial health? Waller: I would recommend that WSBOs increase their Tax literacy by talking to a CPA who specializes in tax issues; specific liabilities and how to handle them. Stay on top of your bookkeeping requirements and payroll reporting requirements. Most importantly, put a CPA on retainer! The CPA can give basic information about the type of taxes you are liable for and how to handle them. In addition, if time permits and you really want to build your knowledge base, look into a basic federal tax course at a local community college. Understanding steps towards financial health will keep your hustle Strong.
Seek out Support and Be Resilient
- Nacr3: If a woman business owner has some previously unmet obligations with the IRS, what are the 3 most critical steps she should take to safeguard her business? Waller: First and foremost, DO NOT ignore correspondence from the State or Federal taxing authorities. Secondly, find out what happened and ascertain ways so that it not happen again. Thirdly, consult with a CPA to help resolve the issues ASAP. There is not an area of your life whether business or personal when positive, effective and transformative support is not beneficial. This concept also applies to the IRS. The IRS (irs.gov) (irs.gov/businesses/small-businesses-self-employed) has several different avenues for answering tax related questions. Seeking support even when it is a corrective measure keeps you Resilient.
Consistent Financial Healthiness is Being Luminous
- Nacr3: Once tax season is over what optimal fiscal measure are available for her new business to remain in good standing with the IRS? Waller: Even before tax season is over, I would recommend that she stay in compliance with the quarterly filing requirements. In addition, review profit and loss statements at least quarterly to determine a profit or loss. If a profit, be prepared to make those estimated tax payments every quarter. However, don’t just think about making tax payments, Consult with a CPA to determine now how to best legally reduce your income tax obligations. Remember tax avoidance is perfectly legal. But tax evasion can be very costly (including fines and jail time). Financial Consistency and Compliance keeps your hustle Luminous…Shining Bright!
*Again, tax time does not have to be overwhelming, seek out information, support and compliance. Mr. Waller is a Certified Public Accountant and Certified Fraud Examiner. His office is located in Lanham, Maryland. Website: rwaller.com