Tax time can be scary for small business owners. If you’re a busy entrepreneur and haven’t kept the best accounting records throughout the year, there’s still time to save yourself some grief and make next year a little easier. Also keep in mind that if you don’t have a good handle on your business’s finances, the more likely it is to fail.

Associated Press business columnist Joyce Rosenberg has these tax tips for small business owners:

* Get organized. Invest in accounting software that will keep you organize. You can input information from all those receipts and invoices into the program and send a file to your accountant at the beginning of the year, saving yourself a whole lot of time and grief.

* Hire a bookkeeper. If you can’t afford to hire a bookkeeper, consider getting an intern, such as a student studying accounting at a local college and have them set up a ledger system. Also consider putting all business expenses on one credit card.

* Read your mail. This sounds obvious, but again some business owners are so busy, sorting through mail can be a chore that gets pushed to the back burner. Not opening important mail from the IRS can lead to penalties and fees down the road.

* Listen to your CPA. Start talking to your accountant now. If you don’t understand what he is saying, ask. Remember, there are no stupid questions, only stupid mistakes.

Despite pressure from the Obama administration to pump up small business lending, the country’s biggest banks cut small business lending by $1 billion in November, according to a Treasury report released Jan. 15.

The 22 banks that got the most help from the Treasury’s bailout programs have cut their small business loan balances $12.5 billion since April, when the Treasury began requiring them to file monthly reports, according to CNNMoney.com.

Bankers defend the cuts, saying small business loans are too risky and fewer entrepreneurs are seeking credit because of the recession.
But many small business owners say lending standards have grown more restrictive the past three years, and a report from the Federal Reserve backs that up, said CNNMoney.com.

Earnings at most big banks have turned around. JPMorgan, for example, reported earnings of $3.3 billion in the last quarter of 2009.

A number of politicians including the president have railed against bank executives for their unwillingness to free up credit while continuing to dole out huge employee bonuses.

Rep. Peter Welch, D-Vt., introduced a bill calling for a 50 percent tax on bonus compensation in excess of $50,000 at banks that received government bailout money. All revenue raised from the tax would go directly to the Small Business Administration to fund a new direct lending program, said CNNMoney.com.

Small businesses are traditionally the first to start hiring during an economic recovery, but that doesn’t seem to be the case this time around. Many small business owners say the credit crunch is a major reason they won’t be hiring anytime soon.

With little funding available, small businesses will rely more on temporary hires and independent contractors, says Business Week.

And in companies of all sizes, existing workers will just be expected to do more.

Daniel W. Glier, president of Glier’s Meats in Kentucky, an 18-person, $3 million sausage maker, told Business Week he’s keeping headcount down by restoring some workers’ hours that got cut earlier this year. He’s also using temps so that if he has to let them go, his unemployment insurance premiums won’t rise. “I’m not going to stick my neck out right now and hire people,” he told the magazine.

The good news, however, is that the number of layoffs at small and mid-size businesses are shrinking. Companies with less than 50 workers shed 75,000 jobs in October, down from 288,000 in March, said Business Week.

Several small business owners met in Washington last week with Treasury Secretary Timothy Geithner and Small Business Administration chief Karen Mills to talk about their struggles during the worst economic crisis since the Great Depression.

The business owners discussed trouble getting credit and government regulations they said are hampering their operations, among other topics.

Woody Hall, the chairman and president of Diversapack, a film manufacturing company operating in several states, said the credit crunch is hampering his company’s growth. “We just opened up a new manufacturing facility employing 50 employees and expected to grow to 150 over the next few years. We basically had no bank financing,” Hall said, according to the Washington Post.

Former chief economist for the World Bank Joseph Stiglitz said exorbitant credit card fees are hurting small businesses and the government needs to address that. According to the Washington Post, Stiglitz said the exchange fee on purchases is “a 2 percent tax on all small businesses. A lot of them have small margins. Imagine you’re got a small margin and you’re giving half of that to banks on exchange fees — how aggravating.”

Geithner acknowledged the government needs to find a way to compel banks to extend more loans to small businesses.

If you’re like many small business owners who want to take advantage of social networking as a marketing tool, building a Facebook page is a good place to start.

New York Times business columnist Kermit Pattinson offers the following tips for launching a Facebook page and using it to market your business:

1.Start small and hone in on your main objective. Are you trying to build brand awareness? Create an online customer service site? Or maybe you want to focus on direct sales. Ask your friends, family and best customers to sign up as a fan of your page when it launches so it can begin to grow by word-of-mouth. Because there are so many tools available on Facebook, you can quickly get off track. Make sure your content is lively and the page reflects the personality of your business.

2.Don’t think of the page as just a sales tool – use it to interact with customers by asking for information and responding to their complaints. Keep content fresh with status updates and newsfeeds to tell fans about specials, events, contests or anything else of interest. This can take a lot of time but the payoff is often worth it.

3.Facebook allows for better target marketing. Facebook users fill out profiles with information like hometown, employer, religious beliefs, interests, education and more so you can get your message to your target market. When you create an ad, you can add demographic criteria and keywords and see how many Facebook users fall into your target audience and modify it accordingly. Advertisers can choose to pay per impression or per click, set maximum budgets and schedule the ad to run on specific dates. The Facebook ad system also provides instant feedback with metrics like the number of impressions and clicks-through.

The number of pink slips small businesses are handing out are on the decline, but they’re still not putting out the “help wanted” signs, said an article on CNN.com.

Small businesses hit hard by the recession have had to trim their budgets, which includes whittling down staff. Since early 2008, small companies have eliminated about 2.6 million jobs, according to payroll company ADP.

ADP said businesses with fewer than 50 employees cut 75,000 workers in October, but that number is the smallest number of job cuts in a single month since July 2008, said CNN.com.

In a recent telephone survey conducted by management consulting firm George S. May International, 74 percent of the small business owners polled said they didn’t plan any new hiring in the next 90 days.

Small business owner Jennifer Hason, who runs a Pennsylvania bakery, has filled her labor gap by working with participants of Job Corps, which provides job training skills to 16 to 24 year olds from economically distressed areas.

Job Corps students work on location for six weeks unpaid with the possibility of getting hired if a position becomes available. Hason has hired two Job Corps students as full-time employees.

“It is my absolute dream,” Hason told CNN. “I get to teach and I get to have assistance — essentially financial assistance — from this program. It is unbelievable.”

Recognizing that many small businesses are still struggling to secure credit, President Barack Obama announced a plan that would encourage community banks to issue more small business loans.

Under the plan, community banks with under $1 billion in assets would be eligible for lower-cost capital if they submit a small business lending plan and document their lending in quarterly reports, said the White House. If approved, the banks would pay the government a 3 percent dividend instead of 5 percent.

Obama also said he will seek legislation raising the limits for Small Business Administration loans from $2 million to $5 million and as much as $5.5 million for manufacturing, according to Bloomberg News.

The president said these steps will lead to “more jobs, more growth, and a stronger economic recovery.”

Some legislators and small business owners have complained that the administration’s recovery efforts have focused too narrowly on bailing out big banks.

Obama asked Treasury Secretary Timothy Geithner and SBA administrator Karen Mills, to gather a group of regulators, congressional leaders, lenders, and small business owners “to determine what additional steps we can take to get credit flowing to small businesses that want to expand,” said Bloomberg News.

Many small business owners and trade groups that typically oppose minimum wage hikes were relatively quiet when the most recent increase took effect July 24, raising the national minimum wage to $7.25 an hour from $6.65 an hour.

Small businesses complain that mandatory wage hikes hurt their bottom lines, forcing them to raise prices or impose cost-cutting measures, including layoffs. But the National Federation of Independent Business said that most businesses pay more than minimum wage to attract the best workers, and 21 states already have minimum wage requirements above the federal level, according to MSNBC.com.

While economists believe the wage hike will have little effect on the economy overall, teens and young adults, as well as workers in rural or poor areas, will likely suffer the most when employers make hiring decisions, said MSNBC.com.

Phyllis Knueven, who owns a grocery store in Illinois that employs several teens, told MSNBC.com she could hire more experienced and flexible adult workers for $8 an hour.

Teens and young adults have already been hit hard by the recession; the June unemployment rate was 24 percent for 16- to 19-year-olds and 15.2 percent for 20- to 24-year-olds.

President Barack Obama’s stimulus bill promises billions of dollars to get the economy back on track, but many small business owners are still struggling to understand how to get their share of the stimulus pie.

To encourage banks to fund small business loans, the Treasury Department plans to buy $15 billion worth of securitized SBA-backed loans using funds from the bank bailout program, Dawn Williams writes in the Nashville Examiner.

The SBA also created the American Recovery Capital loan program, which provides deferred-payment loans to small businesses unable to pay current debt. No-fee ARC loans are interest free. Click here to find out more.

Small businesses also can take advantage of a number of tax cuts and credits, Williams writes. Among other provisions, businesses that sell goods and services to the government, businesses that reduce debt and businesses that invest in new plants and equipment in 2009 are eligible for tax breaks.

Find out more at: http://usgovinfo.about.com/od/moneymatters/a/ecstimtaxes.htm.

Small businesses, the oft-touted economic engine that pays nearly 45% of total U.S. private payroll, is feeling economic pain just as badly as corporate America. This Jan. 11 Associated Press story posted on MSNBC.com took a look at some small business owners who are feeling the recession deeply, like the Minneapolis-based Scandia Bake Shop. There, high flour prices and slow sales had the current owner contemplating closure after the shop’s 60 years in business.

“They come out in droves and you make most of your money between Thanksgiving and Christmas,” owner Gary Arvidson told the AP. “And then this year I was really counting on that and the economy went into the dumper.”

To cope, the AP said, “small business owners — from neighborhood plumbers to graphic design firms — are paying employee salaries before their own, trying to renegotiate leases and pleading for customers on neighborhood blogs. But despite their best efforts, the customers aren’t there.”

Raymond Keating, chief economist at the Virginia advocacy group the Small Business Survival Committee, told the wire service: “People are scared. They’re not quite sure what to do.”

Small businesses account for more than 99% of all employer firms and produce almost a third of the nation’s export value, the story said, quoting federal statistics. So when they hurt, everyone feels the pain, even chain office supply stores who depend on small business owners for business.

Ajay Ekesa told the AP his Kahawa Coffee House in Chicago may not last through the spring. He’s spreading flyers, opening his shop for community meetings and trying to drum up business on the Web.

“Right now I’m trying to do everything I can do,” he told the AP. “With every hour that I’m staying open, I’m not making money. I’m losing money, which doesn’t make much sense.”

As for the Minneapolis bake shop, it looks like the community is going to rally around it. So far, about 1,000 people have signed a petition to keep Scandia open, the AP said.