A tax bill should never come as a surprise to any businessperson. They are as sure to arise as the sun. In addition, the government wants its fair share and they have the power and authority to take it from you. Being in debt to the government, however, is a painful and expensive way to pay your taxes.
A more prudent approach calls for careful tax preparation and planning so that you and your company pay the least amount taxes as legally possible. There are dozens of tax savings strategies that an accounting firm can develop to help you avoid overstating your tax liability, keeping you up-to-date on your payments and maximizing your after-tax income.
The essence of tax planning is not just filling out all the forms in the proper manner. Tax laws change every year and it takes a dedicated team of specialists to keep pace with changes to existing regulations as well as entirely new laws like the PPACA.
No business owner likes being blindsided by an unexpected tax bill so tax planning is an ongoing process that starts at the beginning of the year. A good tax preparation service understands this need and also stays current with tax laws by attending the latest tax seminars held by the experts.
In short, superior tax planning will allow you to preserve the maximum amount of business assets while reducing your taxes to the legal minimum. This will allow the business owner to concentrate on his own priorities such as growing his business.
Tax Saving Strategies
Some of the more important strategies that should be considered include:
- Paying taxes in a timely manner to avoid exorbitant fines and interest charges.
- Deferring income to a less profitable year.
- Utilizing pensions and other tax-advantaged accounts.
- Dividing income among several family members
- Tax consequences of gift-giving.
- Investment planning.
- Estate planning.
The Bottom Line
An tax professional should look out for your best interests and not just make the minimum effort to satisfy the Internal Revenue Service. A good one can save you far more in reduces tax liabilities than their fees. In addition, they will save you time, aggravation and help represent you if you are forced to deal with the tax man. Contact us to help you start your tax planning today.