American Express Open Forum | JoAnne Berg
Your business has several silent partners: Uncle Sam and his state and local cousins. Many of the decisions you make on a daily basis will impact their take, so it’s wise to be at least somewhat familiar with the tax laws when you run your own business.
One of the most important financial metrics for most businesses is “How much cash did we generate?” However, business owners sometimes do not realize how much taxable income (not cash income) their business generated during the year. Then, at the end of the year, they get a tax bill that they do not expect. This can wreak havoc with cash flow and business growth plans.
Here are a few of the situations that can cause this, and some ideas for how to deal with them..