Are you wondering if your business is in trouble? Check out these 5 warning signs
- You owe an excessive amount of back taxes. How did you get there? You may owe back taxes because
- Your business structure is incorrect. For example you are a sole proprietor, you had a great year , you made a ton of money and now at the end of the year you have a ton of net income. BUT, You have no money in the bank because you spent it all, because you didn’t budget. You also took an excessive amount of withdrawals from the business that did not reduce your profits. The result is tax on all of those profits with no money to pay for it.
- You never paid your quarterly taxes, while you had the money.
- You withdrew too much from your business (and you are set up as a Partnership or SCorp) and now you have capital gains tax (ouch!)
- You can’t retain your clients.
- You do not separate business and personal expenses
- You have excessive amount of business debt with no clear plan to eliminate it.
- You don’t have a clear system in place to manage money owed to you (receivables). This leads to less cash in the bank and issues with paying your vendors, employees or even paying yourself.
So how do you fix this? You get clear on your expenses and monitor expenses consistently, set up budgets, tax plan, and you implement a system to track it all.
Want to talk about it? You can reach me here http://bit.ly/2notKbn