Business Taxes

Sara Gardner

Ode to Tax Season

Can I just start by saying UGH.  My first official year in business has to end with one certain thing that can't be escaped, and no, I'm not talking about death.  Annual business taxes are due on Sunday and it was interesting to me breaking down all of 2018's numbers...

I'm not an accounting type of mind so I have to start by saying that finding a great accountant is HUGE!  That being said, as a small business owner there are a few different things you have to keep in mind.  Not only are you looking at the obvious sales tax, but you can't forget about income tax!  45% of the profit goes to various taxes...

Say if a business had $10,000 in sales, minus $5,000 Cost of goods sold (pretty much the cost of the material), leaves that business with $5,000 profit...  45% of that goes to various taxes at the end of the year (or quarterly if that's how you file).  That's kind of a big thing to keep in mind at the end of the year.  

The last thing you'd want to do as a small business is to celebrate what a great year you've had and not take into account what you still owe. 

(Can I summon a rainbow when I say) The more you know. 

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