SCORE Takes a Look at Accounting and Taxes

SCORE (Service Corps of Retired Executives - a resource partner of the Small Business Administration) has recently issued "A Look at Accounting & Taxes."

This document presents some interesting statistics about what small business owners' attitudes about the burden of tax preparation, bookkeeping, and payroll compliance costs.

40% say that bookkeeping and taxes are the worst part of owning a small business.
47% dislike the financial cost of bookkeeping and taxes.  It is surprising to learn that only 8% dislike the inequity of the tax code and only 8% dislike all the paperwork. Only 10% dislike changing regulations an confusion.

40% claim to spend 80+ hours per year on taxes, payroll, working with accountants and obligations and 16% claim to spend over $20,000 complying with the tax laws.

Although I have serious reservations about the methodology of this study and the sources cited in the bibliography, it's interesting to note that many business owners don't seem to mind the administrative headaches and time required to comply with tax laws.

- Mark S Gleason CPA