Preparing and filing taxes as a small business owner is a fraction of what’s required every year for companies to remain competitive.
Making the most of tax credits and deductions, as well as filing accurate and timely taxes, is only possible with strategic tax planning that takes place all year-round, and ideally, with help from an accounting in Miami tax specialist.
Here’s how your small business can get ahead with proactive tax planning:
Hold quarterly strategy meetings
Every quarter, sit down with your accountant and go over your company’s finances. Talk about any changes to the business that need to be made, or any opportunities that could be seized upon, as well as tax projections. If necessary, some tax strategies may need to be adjusted based upon the current financial situation.
This means that when tax season swings around, you’ll know exactly where you stand, and can make more informed decisions for the good of the business, all year-round.
Know your tax projections in real-time
You should always know your projected tax liability, and this should be a calculation based solely on actual projected year-end numbers and year-to-date results.
This enables you to make accurate adjustments to quarterly estimated tax payments, buy equipment strategically, optimize recognition of time revenue and expenses, and avoid being hit with a huge tax bill at the end of the year.
Plan strategically for equipment purchases
Buying equipment for your business should always be planned in a strategic manner, based upon the needs of the business, coupled with your projected tax liability and any depreciation methods that might be available to you.
With help from your accountant, you can decide whether equipment should be bought or leased, in which year this should happen, whether Section 179 or bonus depreciation can be used, and how such purchases should be coordinated with the tax strategy overall.
Optimize retirement plans
Waiting until tax season to optimize your retirement plan contributions isn’t wise. Seek guidance from your accountant to select the right type of retirement plan for your circumstances, determine how much you should be contributing taking tax savings into account, and ensure that contributions are made in a timely manner.
Work with a bookkeeper and a tax specialist
If you can find a company providing both bookkeeping and accounting/tax planning services, so much the better. This type of coordination helps to ensure that no opportunities for saving money slip through the cracks, and tax preparation at the end of the year, is seamless and stress-free.
Additionally, when you take advantage of integrated services from an experienced provider, your monthly bookkeeping can be fed directly into the tax planning that Coral Gables accountants are working on for you. Problems can be identified and dealt with swiftly in this way, as can opportunities.
Having taxes in the back of your mind at all times can really help you get ahead as a business, and keep you competitive. But with professional help, you don’t need to burden yourself with tax strategies, you can leave them up to your bookkeeper and your accountant.