The Tax Man is Coming: Are you Ready?
It may be too late to hire an accountant to help you file your 2016 tax returns, but if the April 18th tax deadline has come quicker than expected, then it’s not too late to hire an accountant to help you file for an extension.
Every independent agency owner should have an accountant on the payroll
Tax season is a time when we see a lot of independent agents start to feel the pressure of running their own business. It’s around this time that all that money you thought you were saving by keeping your own books and filing your own taxes is starting to feel like it just wasn’t worth it. About now, you realize that it’s only Bugs Bunny who can play all bases and have his turn at bat at the same time.
Starting your own agency takes hard work, and it all falls on you to keep all the balls you have to juggle in the air. Unfortunately, tax season is the time when many balls seem to drop to the ground. The truth of the matter is, saving money by taking on all positions in your agency is not going to save you money at all. It’s going to leave you one (or three) steps behind at all times, feeling like you can never catch up, or get ahead. And, with quarterly estimated tax deadlines four times a year, being on top of your accounting and your taxes becomes even more crucial than when you were just filing your personal income taxes.
You have to spend money to make money!
If there’s a silver lining, it’s that you are not alone. Many small business owners, not just independent agents, learn this lesson the hard way. That is why we see more and more agency owners filing for tax extensions, instead of their accountant being on top of their job and filing your taxes on time. Hiring an accountant should be something that every small business owner should do from the get go.
If you think you can save money by not hiring an accountant, then you are most likely starting to see the flaw in your thinking. Part of being a successful boss and agency owner is knowing when to hire more people to keep your business running smoothly, on a budget, and on time. Part of being successful is knowing what your strengths are, like connecting with people and helping them find great insurance. As well as knowing what your weaknesses are, like finding time to do the accounting for your business, and consequently, filing your tax returns on time.
Start your independent insurance agency with AAI in Colorado
Don’t panic, agents, this isn’t the first time the tax deadline has snuck up on agency owners and entrepreneurs. So, reach out to an accountant to help you file for a six-month extension, and then use this time to find an accountant to bring onto your team, so this doesn’t happen again next year. Your success depends on it.
For guidance and education on how to be a successful independent agency owner, join AAI and get access to exclusive business seminars and courses to help captive agents make the switch to independent agents.