Balboa Survey Says 83% of SBOs Will Use Tax Refunds for Business Expenses
FEB 24, 2017 - 7:21 am
An online survey conducted by Balboa Capital revealed that nine in 10 small business owners prepared for the 2017 tax season early. In addition, 40% of small business owners surveyed expect to receive a business tax refund and, among them, 83% plan on putting it toward business-related expenses and initiatives.
This “tax time” survey was sent to a sample of small business owners nationwide in February.
“Now that the 2017 tax season is officially underway, we wanted to find out if small business owners are preparing their returns early to avoid the last-minute rush that can often result in reporting errors, filing delays, and late fees,” said Kevin Anderson, controller at Balboa Capital. “The results of our latest survey are encouraging. 90% of small business owners said they are taking the time to prepare their taxes early and will submit them before the deadline. This is a smart business strategy because the IRS is typically less busy during the early months of the year, and can therefore expedite refunds faster.”
Other key findings of the survey include:
85% of SBOs met last year’s business tax filing deadline.
Nine in 10 SBOs are ready for the 2017 tax season.
Nine in 10 SBOs are knowledgeable of business taxes and business accounting principles.
73% of SBOs will hire a tax professional to prepare their small business taxes in 2017, 10% will use business tax software, 7% will rely on an in-house bookkeeper or accountant and 6% will handle tax preparation and filing themselves.
Office supplies top the list of business-related tax deductions, followed by legal and/or professional business fees, office rent costs, meals and entertainment and employee benefit programs/retirement plans.
65% of SBOs will elect to take the Section 179 tax deduction in 2017.
40% of SBOs expect to receive a tax refund this year.
When asked how they will use their business tax refund, 40% of SBOs said they will pay off debt, 25% will purchase inventory, 11% will invest in marketing initiatives and 7% will acquire new equipment, computers or technology.
22% of SBOs who expect to get a tax refund this year said they will save the money for future business needs.
“Getting a business tax refund is a nice bonus to cap off the busy tax season,” Anderson said. “Business owners who are expecting tax refunds this year are planning to pay off debt and invest in their companies’ futures. We look forward to helping business owners secure capital equipment financing and working capital in a quick and simple manner.”
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