It’s a sad fact that tax is a big part of being in business. Not only do you have to pay over a large chunk of your money to the IRD in various taxes, but like it or not, you also have to act as tax collector, as well as working unpaid for other Government agencies, whether it’s collecting court fines or child support.
Unfortunately some businesses owners and self-employed people never seem to be able to cope or get to grips with income tax, and it just becomes an insurmountable, frightening problem that leads to financial ruin for many.
If you want to succeed in business the first key to success is acceptance. Do whatever you need to do — go and lie down, have a triple-shot coffee, or relax with a glass or two of your favourite glass of wine and let it embrace you. It’s just inevitable — you cannot run a successful business without suffering income tax, and that’s that!
Plan for it
Having accepted you need to pay, the next thing to do is to plan for income tax. Find out when you have to pay and how much. That means getting a good accountant and having your accounts and tax returns prepared early. Ask the accountant to let you know about future tax instalments. Knowing what you have to pay and when is absolutely vital so you can either allocate some money or start saving for the inevitable.