One of the focuses for small businesses should be cost reductions. These cost reductions can come in many forms. One of the best sources of cost reduction is a small business advisor, who acts as more than just your accountant, but as an overall consultant to the operation of your business assisting in everything from cash flow management to tax planning.
One of today's hot topics is of course a budget. Many of us enjoyed such successes in a strong and thriving market place that provided surreal opportunities, but now that we don't have these conditions we need to do a better job of planning. For many small businesses this means setting up a cash budget and also building some cash flow pro-formas that include risk analysis. For some this may be nothing more than stress testing some of the conditions surrounding both your local area and your industry. The idea is know where your business is really at, what to realistically expect, and to have contingent plans for the unexpected.
For these kinds of services make sure you get business advisers with both the professional and educational background to assist you in operating your business in these lean times.
Additionally, with the technology at your fingertips consider bringing this kind of expertise into your business as a virtual service to save additional dollars.
Happy blogging and remember that proper planning combined with the right professional can reduce those costs and help keep the doors open!
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( 2.9 / 582 )Tax laws have become increasingly convoluted in an attempt to enforce taxation and stifle potential abuse. Laws, rulings, provisions, and letters have been and continue to be put in place to thwart these non-compliant tax payers as the tax gap (the difference between the tax that taxpayers should pay and what they actually pay on a timely basis) continues to grow. The IRS National Research Program (NRP) has been studying the tax gap and the composition of the increasing deficit. The NRP stated, "Preliminary Findings Support Enforcement Efforts, Tax Reform Everson said the study confirms two key points involving tax enforcement and simplification.
“The IRS needs to enforce the law so that when Americans pay their taxes, they are confident that neighbors and business competitors are doing the same,” Everson said. “At the same time, this research underscores the President’s call for tax reform. Complexity obscures understanding. Complexity in the tax code compromises both the service and enforcement missions of the IRS. Those who try to follow the law but cannot understand their tax obligations may make inadvertent errors or ultimately throw up their hands and say ‘why bother.’ Meanwhile, individuals who seek to pay less than what they owe often hide behind the tax code’s complexity in order to escape detection by the IRS and pay less than their fair share.”
The President has called for a nearly 8 percent increase for enforcement activities in the administration’s 2006 IRS budget request. The additional funding will increase audits of corporations and high-income individuals as well as expand collection and criminal investigation efforts".
Knowing that again in the 2007 tax year the IRS is increasing their efforts to reduce the tax gap means that it is more important than ever to know that your accounting is correct and that you are operating in a compliant manner. Using an accounting professional with experience and your best interest in mind will help reduce the odds of unnecessary audits.
Additional information can be found on this topic on the IRS website at: http://www.irs.gov/newsroom/article/0,, ... 47,00.html
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