March 10, 2016
Tax & Business Services Partner Dane Dickler discussed tax strategies for managing cash flow, with the editors of Capital One's "Spark Business IQ."
By Nancy Mann Jackson
Small business owners know a larger than expected tax bill could put a wrench in their company's cash flow management, a scenario everyone is eager to avoid. But accurately forecasting your tax obligations can seem difficult, particularly when you're busy running a company. Plus tax laws change from year to year.
Business owners often overlook certain types of taxes, which can create a cash flow crunch. With the proliferation of online commerce, for example, sales and use taxes are among the most commonly missed, says Dane Dickler, tax and business services partner at Marcum LLP. If your company has customers in states where you do not have a physical presence, you may be responsible for collecting and remitting sales and use taxes to that state. Or, if your company purchases products from out-of-state providers that do not collect sales tax, you may be responsible for paying it.
"It gets very tricky because every state has its own regulations," Dickler says.