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Tax crisis for small business? Get help

By Joyce M. Rosenberg
The Associated Press
Tucson, Arizona | Published: 02.26.2007
NEW YORK — Compiling a small-business income tax return is rarely a pleasant experience, but for those company owners who have neglected their finances for the past year, it can be torture.
Typically, the owners who struggle the most have poor records or discover during the course of filling out the return that they don't have the cash to pay their tax bills. Chances are, an owner in either scenario doesn't have a good handle on the overall business, let alone the company's taxes.
Perhaps the biggest mistake many small-business owners make is to consider taxes a once-a-year event. Taxes should be an integral, ongoing part of operating a business — not the main driver, but another facet of a well-run company.
Getting organized doesn't have to be hard, or expensive. It does, however, require that you make some decisions about how you run your business.
For openers, you need to decide whether to have someone else do the work for you. If you haven't been able to keep your records in good shape, you're probably better off delegating the job.
Many small-business owners understandably worry about expenses, but Gregg Wind, a certified public accountant with Wind Bremer Hockenberg LLP in Los Angeles, noted there are resources to help them take care of their finances without running up a huge bill.
For example, accounting students at a nearby college are usually looking to make some money. And plenty of bookkeepers willingly work part-time.
Another option is a temporary staffing agency, but you will have to pay a fee, so it's best to try the other avenues first.
You do need to pay frequent attention to what your books and records say. You need to be sure your bank reconciliation is done monthly and know where your cash flow stands.