Seemingly constant changes to state and federal tax codes continue to hamper small business owners, and as a result, entrepreneurs are finding themselves spending more and more on their cash flow management.
The Wall Street Journal cites the case of Sherri and Scott Comstock, two small business owners from Illinois. The pair told the WSJ that their annual accounting expenses have climbed toward $46,000 per year on bookkeeping and outside accountants because of constantly changing requirements. The duo used to handle the accounting themselves, but say new laws require their assistance on everything from budgeting to accounts payable to tax assistance.
"There is no way a small business owner could track [the tax code] and run their business," Sherri Comstock told the paper. "There are not enough hours in the day."
Many business owners have blamed the rapidly expanding federal tax code, which has nearly tripled in size since 2001, the WSJ reports. As a result, small business owners find themselves playing defense against the Internal Revenue Service and other agencies.