Most small business owners dread the tax season. Yet to save money, many entrepreneurs attempt filing taxes on their own and end up making costly mistakes in the process.
Two recent polls by online small business service directory Manta have found 21 percent of small business owners file taxes on their own, without help from tax software or an accountant.
The surveys also found that 30 percent of small business owners are still tracking their expenses with paper receipts, a system that invariably increases the possibilities of making mistakes.
Key Highlights of the Manta Polls
Some of the main findings of the two polls include the following:
- 47 percent of small business owners said they planned to file their taxes before March 15,
- Software solutions like QuickBooks are the most preferred choices to keep track of expenses,
- About 63 percent of businesses use an accountant and 11 percent use online tools like TurboTax to file taxes,
- 74 percent of small business owners feel confident about their available deductions.
The Right ‘App’roach For Businesses to File Taxes
Small businesses have several things to worry about; filing taxes need not be one of them. Thanks to several new user-friendly apps, it is now easier for business owners to simplify the process of filing taxes.
“Apps like Expensify are useful because they’re free and can be accessed on the go. Rather than worrying about losing paper receipts, small business owners can simply take a photo of receipts that are then automatically synced with their credit cards,” says Manta CEO John Swanciger.
“Even when they’re properly stored and maintained, receipts can easily be lost and this tactic is more prone to human error. Tracking expenses with paper receipts is also a time-consuming process since logging and filing receipts is a tedious task,” he adds.
Most of these apps connect business owners to seasoned tax professionals who provide valuable input and answer all questions businesses might have with regards to the process of filing taxes. What’s more, these apps are based on advanced algorithms to ensure businesses make no mistakes when they prepare taxes.
As these new apps are more cost-effective and reliable than tax consultants, many small businesses are now using them to make their lives easier.
For its tax poll, Manta conducted two online surveys between February 29 and March 2 and March 2 and 3, 2016. About 924 and 600 small business owners participated in the two surveys, respectively.
Tax Forms Photo via Shutterstock