40% of Small Business Owners Say Bookkeeping & Taxes Are The Worst Part of Owning A Small Business

Specifically...

  • 47% dislike the financial cost
  • 13% dislike administrative headaches and time
  • 13% dislike the complexity of compliance
  • 10% dislike changing regulations and confusion
  • 8% dislike all the paperwork
  • 8% dislike inequity of the tax code

In terms of the time spent on taxes, payroll, working with accountants and obligations:

  • 40% Spend 80+ hours/year
  • 18% spend 41-80 hours/year
  • 15% of small business owners spend 21-40 hours/year
  • 28% Spend <21 hours/year

In addition to time, there's of course a monetary expense for these activities.

For small business owners, the annual costs of administration of taxes, internal costs, legal fees, etc. can be high.

  • 23% of small business owners spend $1,000 or less
  • 31% Spend $1,000 to $5,000
  • 18% Spend $5,000 to $10,000
  • 12% Spend $10,000 to $20,000
  • 16% Spend $20,000 or more

Monthly payroll time and spending adds up, too.

Business payroll costs can be less than $50 per month and exceed $5,000 per month. Here's the breakdown:

  • 8% < $50
  • 15% $51-$100
  • 46% $101-$500
  • 14% $501-$1000
  • 12% $1,001-$5,000
  • 5% $5,000+

In terms of the monthly time spent by those that do payroll in-house:

  • 21% of small business owners spend no time at all
  • 26% spend 1 - 2 hours/month
  • 26% spend 3 - 5 hours/month
  • 17% spend 6 - 10 hours/month
  • 11% spend 10+ hours/month

SCORE infographic on taxes and accounting

Infographic: A Look at Accounting and Taxes