A few years ago, we wrote an article for the Vancouver Business Journal on how alternative financing can help with IRS penalties. If you weren’t looking for help then, perhaps this will speak to you now. While most of us are still working on collecting our tax documents from last year, we can all be thinking of how to implement a better strategy for our business finances.
Juggling incoming and outgoing money in business can be a tricky thing. Especially when it comes to taxes, it can be a difficult balancing act. While the IRS is a confusing system in some regards, in others it is very simple: don’t pay your taxes, and you’ll have to make up for it in fees. There are four main penalties a business can get hit with by the IRS: failure to pay tax, interest, late deposit penalties, and failure to file a return. More in-depth information about each of these can be found on the IRS website.
So how can ACCG help you avoid trouble with Uncle Sam?
By providing you with a cushion of cash so you don’t fall behind on your 941 tax payments. Factoring is one method we suggest implementing to gain this cushion. Quite simply, factoring is a way to get the money owed to you in your pocket faster. We’ve defined it in more depth here. There are other alternative financing strategies that can be used to increase your business’ cash flow and help keep you from borrowing from the wrong places.
Choosing to partner your business with a lender isn’t free, but it is an investment. Fees in the financial world are nearly impossible to avoid; doesn’t it make sense to pay a fee for a service that will profit your business in the long run? If you can identify with being a business that has gotten on the wrong side of the IRS, talk to us and let us help you find a solution to avoid that situation in the future.