Death,Taxes, and Royalties Part 2 Taxes

Hola from New Mexico,


Franchisees have inevitable events to face. Among them are Death, Taxes, and Royalties. In part 1 we decided that Royalties are like taxes, the money isn't yours.

Taxes, it is that time again. It amazes me how the same business tax code can be interrupted so many different ways. I can visit the same same operation, with the same amount of employees, and in the same ballpark income wise, and the variation of expenses is amazing. I won't go into what I think you can and can't write off your taxes for a tax break, because I am not an accountant, but I do have some tax advise.

First of all pay what you owe. That shouldn't have to be said.

Second, send in your franchise income tax reports by April 15th. Unless it can't be avoided, do not get an extension until Oct. 15th. How can we figure out how you did last year if we wait until you get everything put together by April 15th. Let alone October 15th. I have people wanting me to help them plan a fall budget in September who haven't even put everything together from the year before. They won't have it together until October 15th!

Third, get a good tax accountant. Not just your brother-in-law that is a CPA. Get someone that knows all the ins and outs of the law. I have seen I and E statements for years and I can easily tell if they are using a good accountant. You may be leaving money on the table or your may be on the IRS hit list depending on your accountant.

Fourth, Use the information you generated for the IRS to make the next year business year better for your franchise. Take a hard look at expenses. Could some of those be cut back. Was it lack of business, or were you over spending?

Taxes and Royalties, it could be worse.....

Fran