Tax day, or April 17, is fast approaching. And small business owners have been working overtime to make Uncle Sam’s deadline.
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According to a survey by the National Small Business Association (NSBA), 64% of small-business owners reported spending more than 40 hours this year dealing with federal taxes -- up from 57% last year. An even more striking number is the 45% who reported spending more than 80 hours – or two full workweeks -- crunching their numbers.
With figures like these, it’s probably no surprise that 85% of small business owners hired and paid an external tax practitioner or accountant to manage their taxes this year.
“The overwhelming majority of small business owners support broad reform of the federal tax code—not tinkering with certain taxes here and there. While certain credits and deductions can be very helpful, the ever-changing tax landscape is a roller coaster ride without the slightest indication of what’s around the next corner. Lawmakers must work toward broad reform, and they must do it now,” said Todd McCracken, NSBA President & CEO.
And business owners aren’t just spending more time getting taxes done, they’re spending more money as well. Small business owners who spend more than $5,000 on getting their taxes professionally handled is up from 50% in 2010 to 53% in 2011.