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3 spooky small business myths, busted

Shutterstock_1214620402At this time of year, there’s plenty of “spookiness” to go around – the new Halloween movie, haunted houses, people incessantly arguing about politics on Facebook (just to name a few). Luckily, starting a small business doesn’t have to be something that makes your hair stand on end.

To calm potential entrepreneurs’ fears of starting a small business, I wanted to learn about some of the most popular myths – and hopefully put them to rest. Amy Wang, CPA and senior manager of the Tax Advocacy & Policy team at the AICPA and Margaret McNab, founder and co-organizer of the Freelance League of North Carolina, joined me on #CPApowered’s new podcast, The Small Biz Brunch, to discuss just that.

Myth #1: Side Hustles Aren’t Taxable

Truth: In a nutshell, if someone makes a decent amount of money on the side, they should consider seeing a CPA. For example, even renting out an apartment or condo on a home rental site can result in substantial tax implications. A CPA can help sort out estimated taxes and more, so their client can spend more time sifting through Halloween candy instead of jargon on the IRS website.

Myth #2: Small Business Owners Must Provide Employees with Health Insurance

Truth: The current healthcare landscape might be as scary as Michael Myers creeping into your backyard, but that doesn’t mean small business owners should run away screaming. While it’s important to stay up to date with ever-changing rules, it is a CPA’s job to know the ins and outs. During this month’s episode of The Small Biz Brunch, Wang mentioned that if a business owner has under 50 full-time employees, the employer does not have to provide health insurance. But if there are more than 50 full-time employees, and they don’t provide health insurance, then there will be a penalty to pay. Without the help of an expert, these things can be complicated to navigate.

Myth #3: Entrepreneurs Don’t Need a Professional to Help Grow Their Business

Truth: This is basically like saying the Sanderson sisters didn’t want to steal children’s souls – completely bogus. Small business owners wear so many different hats as it is, whether it’s marketing the business, generating sales or hiring employees. So why add financial expert to that list? A CPA is a trusted adviser in more ways than one and can provide the insight needed to grow a business to its maximum potential.

Listen here for this month’s full episode of The Small Biz Brunch, and feel free to share these myths with potential clients to help them understand why they should hire you. For more resources to share with potential clients about why they should hire a CPA, visit cpapowered.org. I hope your Halloween is filled with lots of scary movies, yummy candy and clever costumes!

Samantha Delgado, Manager – Communications, PR & Corporate Social Responsibility, Association of International Certified Professional Accountants 

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