Tax season is in full swing, and everyone from individual consumers to big corporations are concerned about how best to deal with the IRS this spring. But perhaps the most worried taxpayers are the ones in the middle – small business owners are really feeling the pinch this year.
A study by workforce solutions firm Adecco recently found that 40 percent of small business owners are worried about the effect of new tax laws. Taxes ranked as their foremost financial concern in 2013, ranking ahead of the impact of the Affordable Care Act (30 percent) and the sequester as well.
While many entrepreneurs are optimistic about their ability to weather the sequester, Adecco vice president Nichole Spaight did say the budget cuts have raised many questions for small business owners, according to Fox Business.
"It's the same discussion over and over," Spaight said. "What will this mean, and will it have an impact? The uncertainty is what is getting to these business owners."
Some tax tips
Unlike the sequester, the tax burden is not a new problem, and for those looking to get the best value this tax season, there are plenty of established tricks of the trade. Bloomberg Businessweek recently shed light on a number of helpful financial tips for entrepreneurs – for example, people should take the time to weigh the pros and cons of filing as individuals rather than jointly with their companies. Furthermore, being prepared and collecting all relevant paperwork ahead of time can be a huge time-saver, and planning for retirement is an important part of the tax process as well.
There are a lot of reasons for small businesses to be concerned about taxes this spring. There's the short-term financial aspect, the long-term repercussions and the emotional component – being able to keep one's business afloat without succumbing to the stress.
Overall, there's optimism that small businesses will make it out alive – 29 percent of Adecco's respondents say they expect to expand in 2013, and only 3 percent plan to lay off employees. In the long run, most enterprises will be all right.
But tax season isn't easy, and it isn't to be taken lightly. Being prepared to make savvy financial decisions is of the essence.