Survey: Canadian entrepreneurs struggle with tax compliance

A recent study conducted by Angus Reid Public Opinion on behalf of Sage Simply Accounting revealed more than half of surveyed Canadian small business owners see tax compliance as a significant weakness when it comes to managing their companies.

A total of 56 percent of respondents said they struggle to deal with regulations pertaining to taxes, ahead of more than one-quarter (27 percent) that cited business marketing and sales management restrictions and 26 percent that pointed to financial management.

Nearly one-third (32 percent) said they are most concerned about complying with rules and regulations related to income tax. In order to stay on top of ever-changing legislation, 47 percent said they enlist the assistance of professional services, while 27 percent turn to government websites or help lines.

"The fact that more than half of the respondents view taxes as an area of weakness is understandable as regulations are complex and many Canadian small business owners have not been formally trained on tax codes," said Nancy Harris, vice president and general manager at Sage Simply Accounting.

Harris noted that using accounting software can help the nation's entrepreneurs ensure compliance with government regulations while simultaneously saving time, thereby freeing up employees to attend to other tasks.

The Sage study echoes the findings of a recent survey by the International Federation of Accountants’ Small and Medium-sized Practices Committee, which revealed that the owners of many small and medium-sized accounting firms are struggling to comply with government red tape, Accounting Today reports.

A total of 41 percent of surveyed small practice accountants cited keeping up with new regulations as the top issue facing their firms in the fourth quarter of 2011.