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Poll: Small Business Owners Believe Tax Filings Accurate, Yet Many Still Believe They Overpay

Chris Gaetano
Published Date:
Sep 4, 2018

A poll of 302 small business owners found that many are confident that their tax returns are filed accurately while, at the same time, a significant portion believe they are overpaying. This is according to a survey conducted by Clutch, a business consulting firm. The survey found that, paradoxically, small business owners both are and are not confident that their taxes are accurate. On the one hand, 93 percent said they are either very or somewhat confident in their ability to file taxes. On the other, 30 percent also believe they are overpaying their taxes. 

One might be inclined to think that, perhaps, these 30 percent might be best helped by enlisting a qualified CPA to look into the matter. However, it would appear that many don't think they need one, because 65 percent are very confident in their financial record keeping and 30 percent are confident. Clutch noted, though, that this level of confidence is likely more a reflection of their perceptions than reality: Records are rarely 100 percent accurate, as many small business owners learn once a professional accountant takes a look at their books. The survey found that the most common accounting errors for small businesses include recording current transactions in a prior period, misclassifying expenses into the wrong category and losing receipts. 

The poll also found that 27 percent of small business owners do not maintain separate bank accounts for their company, putting them at risk of accidentally commingling personal and business expenses; they listed the most common financial challenge, at 35 percent, as unforeseen expenses. 

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