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BUSINESS Monday 30 January 2017
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Small Business:
Tax season is here - with headaches for small businesses

JOYCE M. ROSENBERG behind setting up systems CHANGES she hired movers and a strategic planning, details
AP Business Writer properly from the get-go,” Complying with tax law painter for the new space, like tax-deductible expens-
NEW YORK (AP) — With the says Divigard, manag- revisions can be hard she realized she needed to es can get lost in the shuf-
start of tax season, stress ing director of New York- even with a bookkeeper get information like Social fle, creating a headache
levels are rising at many based Valvespring. and accountant, Barbara Security numbers and ad- later. Deborah Sweeney
small businesses. Divigard subsequently Karpf has learned. As of dresses from eight people. has learned to look at her
Even owners who are or- books monthly to be sure
ganized, keep good books expenses like charitable
and stay in touch with donations and the costs
their accountants can find of employee meetings are
compiling returns to be a entered properly.
painful process. One rea- “That way, we don’t have
son is that tax laws change to scramble at the end of
often, says Rosamaria the year,” says Sweeney,
Bravo, a certified public owner of MyCorporation.
accountant with the firm com, a Calabasas, Califor-
MBAF in Miami. One of nia-based company that
this year’s big differences: helps businesses incorpo-
Partnership returns must be rate online.
filed by March 15, a month Sweeney recalls errors of
earlier than in the past. past years, such as not tak-
And companies known as ing a deduction for a ser-
C corporations have a fil- vice contract on a printer.
ing deadline of mid-April, She has also learned to
after having a March due take her questions to her
date in past years. accountant to be sure
“It’s very hard to stay on she’s not missing some
top of all the information,” of the finer points of rules
Bravo says. “The aver- Christina Divigard, managing director at advertising agency Valvespring, poses for a portrait at about deductions. For ex-
age business owner is more her office in Midtown Manhattan. When Divigard started the agency, she bought accounting soft- ample: “How do we cat-
ware and began keeping the company’s books herself. When tax season arrived, she discov-
worried about their day-to- ered that out of inexperience, she’d incorrectly entered some information and misclassified some egorize new furniture — do
day operations.” types of deductions. It took two weeks to get her books in order. Divigard subsequently hired a we write it off or depreci-
Here’s a look at some les- bookkeeper and set up a system that has reduced the chance of errors. ate it? What amount of an
sons small business owners (AP Photo/Mary Altaffer) owner’s health care costs
learned: hired a bookkeeper to this year, businesses must Well into January she was is deductible?”
help set up accounts and file W-2 forms and 1099 still getting all the informa-
USING SOFTWARE WISELY understand how to input forms with the IRS by Jan. tion together so 1099 forms FINDING THE BEST HELP
When Christina Divigard income and expenses. She 31. While companies were for freelancers and other Diane Hamilton, though,
started an advertising also learned more about previously required to give contract workers could get has struggled to find an
agency, she bought ac- the need to put expenses those forms to workers by to the government, as well accountant who’s a
counting software and into different accounting the end of January, they as the workers, on time. good fit for her company,
began keeping the com- categories — for example, didn’t have to get them “It’s more work in a shorter which makes computer
pany’s books herself. When meals during a business trip to the government until period of time,” Karpf says. and phone apps. She has
tax season arrived, she dis- are different from meals to the end of February. The worked with large ac-
covered that out of inex- entertain customers under government can charge a KEEPING TRACK OF EX- counting firms in the Rich-
perience, she’d incorrectly the tax law. Having a sys- penalty if it gets the forms PENSES mond, Virginia, area where
entered some information tem that is correctly set up late. When an owner is running her Binary Formations busi-
and misclassified some has reduced the chance That created extra pressure a business day by day and ness is located. But the bills
types of deductions. It took of errors, and even if Divi- for Karpf. Her home decor also trying to do long-term climbed as she called with
two weeks to get her books gard has to do repair work, company, DecoratorsBest, questions. q
in order. “now it takes me a day moved offices in New York
“If I had to do it all over rather than two weeks.” right after Black Friday and
again, I would have put Cyber Monday, two of
more effort and budget KEEPING UP WITH THE its busiest sales days. After

Little holiday-season joy for toy maker Mattel

EL SEGUNDO, Calif. (AP) — holiday period” among The company reported
It was not a happy holiday factors weighing on Mat- revenue of $1.83 billion in
season for toy maker Mat- tel’s numbers. the period. Six analysts sur-
tel. Mattel reported fourth- veyed by Zacks expected
The El Segundo, California, quarter profit of $173.8 mil- $1.98 billion
company last week report- lion, or 50 cents a share. A year ago, Mattel earned
ed fourth-quarter results Earnings, adjusted for re- $215.2 million, or 63 cents
that fell well short of Wall structuring costs, were 52 a share, on revenue of just
Street expectations and its cents per share. under $2 billion.
stock took a big hit in after- The average estimate of For the year, the company
hours trading. seven analysts surveyed by reported profit of $318 mil-
CEO Christopher Sinclair Zacks Investment Research lion, or 92 cents per share.
cited a “significant U.S. toy was for earnings of 71 cents Revenue was reported as
category slowdown in the per share. $5.46 billion.q