One of the many perks of being a large corporation is that you are eligible for larger tax breaks. They can write off things that normal small businesses just do not have the means to do so. For instance, large corporations can write off research and experimentation. It does not make sense for a small business to spend money on research just to receive a tax break because they have much less revenue.
There are many more breaks that large corporations can get like deferral of income from controlled foreign corporations, exclusion of interest on local and state bonds, and deduction of domestic manufacturing just to name a few. Of course, these are far outside the reach of small business owners’ ability to take advantage. Meaning even though large corporations will pay a larger amount of money in taxes they do not take the same tole as taxes on smaller businesses.
This is about to change. Annette Nellen, the Executive Committee chair, testified before the Senate’s Small Business and Entrepreneurship Committee in favor of lowering taxes for small businesses as much as corporations. In her testimony Nellen says, “Congress should continue to encourage, or at least not discourage, the formation of sole proprietorship and pass-through entities. If Congress decides to lower corporate income tax rates, small businesses should receive a lower tax rate as well.”
Hopefully, the future will hold an easier time for small business tax rates. The whole committee agreed that without tax accounting software small businesses will have an extremely difficult time optimizing and filing their taxes. Having a one stop place, for small business owners, to receive small business advice and have a certified professional file their taxes, in a way that will benefit them the most, is still of great importance. As the tax laws change, small business owners that can save money on their taxes will be ahead of the game and have more capital to invest in their business to promote growth.
Great businesses are the most efficient. The great entrepreneurs know how to work efficiently and grow their brand. They know when additional resources are needed and when technology can impact their business for the better. Setting SMART goals and knowing how to use technology to your advantage will increase your business’s efficiency.
One of the greatest pieces of advice that most people often forget is the KISS approach. Keep it simple silly is such good advice, when put into practice can save a lot of headaches in the future. One of the greatest tools you have today, to assist you in running your business efficiently, is your phone. I know that the phones today can seem overwhelming, but the advantages are there. There are many programs, QuickBooks, Expensify, and more, that have mobile apps for your phone. These can help your stay connected to the office even when you’re out. They also have the added benefit of being a cloud backup for your data.
Another way to keep your business efficient and on track is to set up SMART goals. If this is your first time reading about SMART goals, it is an acronym for how to set a goal that is Specific, Measurable, Achievable, Relevant, and Time-Bound. If you want to read more in detail about SMART goals this link provides a deeper understanding. Remember, after setting these goals you should revisit them often, and do not be afraid to failure. Set a goal that you believe you can achieve but will challenge you and your business. Failure is a learning opportunity that will teach you a valuable lesson, that you hopefully will not make again.
The Pathways Team