It’s no secret that tax season is a source of misery for most. Having to organize receipts for job-related expenses and mailing federal and state tax payments practically ensures that come April 15, pocketbooks are significantly less full.
For small businesses however, there is a more substantial cost that comes with the tax season. According to the National Small Business Administration (NSBA) as reported in the Washington Post, “More than half of small employers say the administrative burdens and paperwork associated with tax season pose the greatest harm to their businesses.” The Washington Post article further elaborated that small business owners could lose up to a full week of work filing their taxes.
In addition to time lost, small business owners also paid thousands of dollars in fees when hiring accountants to navigate the difficulties of navigating the federal tax system. The Post reported that half of the small business owners polled by the NSBA spent over five thousand dollars on an accountant, while every one in ten spent over ten thousand dollars on an accountant.
The Post article referred to efforts by Congress to try and simplify the federal tax filing system for small businesses. In spite of the efforts of various Members of Congress however, one should keep in mind that the current Congress has had difficulties passing legislation that can provide reprieve to small business owners. It seems then, that the problems with the complexity of the federal tax system will continue to plague small business owners.
These difficulties come at a time when, for the most part, conditions for small businesses are improving. The NSBA reports that, “There was very modest growth in small-businesses revenue, profits and hiring over the last 12 months with greater increases in projections for the coming 12 months.” The NSBA also reported a key problem facing small business: lack of accessible capital. “While the last six years have seen a small-business community struggling to stay afloat, the availability of capital has become scarce, at precisely the wrong time,” the NSBA reported.
For small businesses looking for a quick way to access much-needed capital or a cash flow in the midst of tax-season, look no further than Overnite Capital. Overnite Capital supports various sectors, including: manufacturing, apparel, staffing and trucking and government contractors and handles factoring lines of credit from $100,000 to $5 million. For more information, please call us today or message us via the Contact Us tab.