Tax Time: Small Business Tax Woes
Many may not realize that filing a tax return costs a lot more than just money
CHICAGO — For most building service contractors (BSCs) and other cleaning industry professionals, April 15 means one thing: the day tax returns are filed.
However, many may not realize that filing a tax return costs a lot more than just money. And, because many BSCs are mom-and-pop operations, it can significantly impact them and other small businesses more so than a large corporation.
Why? It all comes down to the complexity of the tax process and the time it takes to prepare a return and meet tax guidelines.
- The biggest burden isn't necessarily the actual taxes owed. According to a survey by the Taxpayer Advocate Services (TAS), 56 percent say "it's the administrative burden and not the financial burden" of the tax process that is most bothersome.
- Another contributing factor is the paperwork related to compliance. More than half of small businesses pay more than $5,000 per year (in time and money) to deal with tax paperwork and compliance issues.
- Almost two-thirds of small businesses spend 40 hours or more per year dealing with Federal tax issues.
- Small businesses spend as much as 65 percent more in resources-dollars and time-to address tax compliance issues per employee.
"We can only hope that our government will one day streamline the tax filing process," says Michael Schaffer, a senior executive with Tacony's floor care division and president of Tornado Industries. "As the statistics show, it could really make tax filing and compliance easier for BSCs and other small businesses."
Source for statistics: Taxpayer Advocate Services
Tornado's Business of the Business Advisory is designed to help building service contractors operate their businesses more efficiently and profitably.
About Tornado a Tacony Company
Tornado Industries has been engineering quality cleaning equipment for more than 80 years. The company has a long history of developing innovative products and applying the latest technology to increase productivity, reduce costs, and improve safety. Tornado prides itself on always being on the cutting edge of cleaning solutions. Many of the company's products are manufactured in the United States with domestically and globally sourced parts.