Use Tax Time To Prepare Your Business’s Financial Future
January 24, 2018
Tax filing naturally means that you are reviewing your business’s finances, and so once your taxes have been filed, it makes good business sense to think about the future of your finances before you put all your paperwork away. Here are a few points to consider for your businesses financial future, once your taxes have been filed:
- Do you still know who you want to be involved with your money?
Tax time can be a good point at which you review your chosen financial and medical powers of attorney, that’s assuming you’ve done so, and if not, now would be a good time to fix them in place. If you want to make any changes to your current powers of attorney, then do them sooner rather than later, since you never know what might be around the corner.
- Are your estates in order?
Knowing who you want to inherit your assets in the event of you leaving the business, is important, and it’s worth knowing that minors are not allowed to inherit funds without a court supervising the funds, and that even then, they can only do so through a legally established guardianship. Many of us would like our children or even our grandchildren to inherit our assets, and provided you plan appropriately, this shouldn’t become an issue.
- The advantages of tax planning
It’s always a good idea to review your tax planning performance each financial year, and to devise a plan for the upcoming year that will hopefully avoid any mistakes you may have made this time around. One simple way of avoiding any errors while planning your taxes, is to hire the help of a professional tax planner, who will be able to methodically plan your taxes and ensure that you are always legally compliant.
- What about when the time comes for you to retire?
While many of us may not want to think about the time when we can no longer work, there are others who are counting down the days until their retirement, and there is always the worry of whether you will have enough funds to retire comfortably. For those who have had one employer for the majority of their working life, calculating your retirement fund should be comparatively simple, but if you’ve worked for several companies over the years, it can be easy to accrue several different retirement accounts, and keeping track of them can be tricky. A professional tax planner will be able to help you consolidate these accounts to make your retirement plan more straightforward, and at the same time, they will ensure that your investment decisions with respect to retirement assets, are in tune with your overall financial objectives.
Engaging with a reputable tax and consulting firm is perhaps the best way to evaluate your business’s financial objectives and financial future, but since they will always be busier at tax time, it would be wise to book a consultation with them well in advance of tax filing time.