Infographic: A Look at Accounting and Taxes

Small business owners spend a lot of time and money on taxes and accounting. Is this a burden for entrepreneurs? Get the facts on today's tax preparation and accounting trends in this SCORE infographic.

40% of Small Business Owners Say Bookkeeping & Taxes Are The Worst Part of Owning A Small Business

SCORE infographic on taxes and accounting

Specifically...

  • 47% dislike the financial cost
  • 13% dislike administrative headaches and time
  • 13% dislike the complexity of compliance
  • 10% dislike changing regulations and confusion
  • 8% dislike all the paperwork
  • 8% dislike inequity of the tax code

In terms of the time spent on taxes, payroll, working with accountants and obligations:

  • 40% Spend 80+ hours/year
  • 18% spend 41-80 hours/year
  • 15% of small business owners spend 21-40 hours/year
  • 28% Spend <21 hours/year

In addition to time, there's of course a monetary expense for these activities.

For small business owners, the annual costs of administration of taxes, internal costs, legal fees, etc. can be high.

  • 23% of small business owners spend $1,000 or less
  • 31% Spend $1,000 to $5,000
  • 18% Spend $5,000 to $10,000
  • 12% Spend $10,000 to $20,000
  • 16% Spend $20,000 or more

Monthly payroll time and spending adds up, too.

Business payroll costs can be less than $50 per month and exceed $5,000 per month. Here's the breakdown:

  • 8% < $50
  • 15% $51-$100
  • 46% $101-$500
  • 14% $501-$1000
  • 12% $1,001-$5,000
  • 5% $5,000+

In terms of the monthly time spent by those that do payroll in-house:

  • 21% of small business owners spend no time at all
  • 26% spend 1 - 2 hours/month
  • 26% spend 3 - 5 hours/month
  • 17% spend 6 - 10 hours/month
  • 11% spend 10+ hours/month

If you're looking for ways to simplify your tax and accounting efforts, turn to SCORE mentors. We can help direct you to resources and recommend strategies that can save you time and money. 

Get helpful tax and accounting tips from these free online workshops