Last week in this space, I included a passing reference to
Pokemon GO, because how could one not? One can argue about the game’s merits
(and pretending to come to any definite conclusion isn’t necessary here), but
either way it makes for an easy joke.
Imagine my surprise then when shortly after writing that, an
article showed up that actually spoke of the financial and tax aspects of
the phenomenon.
The financial picture occupies an odd place because the game
is nominally free. If you have a compatible device, you can play. Purchasing
add-ons are key to how the game will make money, though, and if you are a
parent with a kid who is obsessed with Pokeballs, this is a good time to have a
talk about money; it can be difficult for children to grasp the concept of a
financial transaction taking place when they never see the actual money
involved.
I recommend reading the above-mentioned article for a
discussion how sales tax can be collected on those purchases. The digital
world, after all, opens up lots of questions about exactly where transactions
take place and who can collect taxes on them.
I also want to mention another
recent report. As a warning, clicking through will lead you to an article
about how utilizing accounting professionals is linked to better business
performance. And sure, you can then understand that my linking to it is a
little self-serving, but it speaks to things in which I fervently believe.
Just as how the current technological world allows access to
a wild fad of gameplay taking place in the real world, that same world allows
more opportunities for business owners to tackle a greater amount of their
accounting load.
This is already taking a firm hold in the tax industry, as
affordable over-the-counter options look like great financial deals when
compared to the price of a professionally prepared tax return. Tax
professionals, however, are aware of more deductions (and any software probably
will not lead you to, well, catch them all) and that knowledge could more than
pay for the price difference.
Now there are ever-growing bookkeeping and accounting
options, too, especially with the increasing prevalence of cloud-based systems.
We use many of them ourselves and they do contain great power and possibility.
That is they do if you are confident that all the numbers
inputted into them are placed in the right places.
Beyond needing that level of competence to trust that what
you have done is correct, there can still be a large time element involved, and
that is an area I think many business owners need to make a key concern.
Yes, I can’t deny that do-it-yourself options are cheaper
than professional accounting services. But did you start your business because
you really wanted to spend a lot of time with your books and bank account
statements?
No, that’s what we did.
You started a business because you had some other service
that you wanted to offer. And if you are spending hours a week on your
finances, then your efforts are being taken away from where you wanted to put
them when you started. By putting those efforts back in that primary spot, you
can reap greater profits and make it worth paying someone else to handle the
accounting aspects of your endeavor.
And it could open enough free time to catch yourself a
Pikachu.
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