If tax services are not on your radar for your business this year, they should be, because when it is time to pay the government early next year, you’ll be a lot happier if you start tax planning now!
For businesses that are “corporations,” the corporate business tax rate is 21%. Other business structures such as S corporations, sole proprietorships, and partnerships, are “pass-through entities,” meaning that the owner’s personal tax rate will pay, which can range from 10% to 37%.
Taxes will add up, and they may surprise you by how much unless you work with the best professional accounting services team to guide and protect you.
Do not leave your business at risk of going in the red when tax season rolls around.
What Is Tax Planning?
While it helps to know how much you will owe for year-end taxes and how much to set aside to pay it, tax planning is about a lot more than that. You get a bird’s eye view of your financial status.
There are many factors at play, and to ensure that your business taxes come to the least amount necessary, everything must work in conjunction correctly.
You can partner with an accounting company that has an excellent reputation and will provide tax planning recommendations by looking at things like:
- Credit opportunities
- Deductions
- Expense planning
- Size and timing of purchases
This is a start. Once you look at these items, you can decide on other factors that can work well with your financial strategy. With information, you can make smart, informed decisions.
In short, it will maximize the value of your business.
Not Tax Planning Puts Your Business at Risk
If you are not an expert in business taxes and you wish to go it alone, any innocent “oops” could land you a tax evasion charge. Mistakes in filing your returns, missing tax payments, withholding tax monies, etc. could be a simple error on your part, but not to the IRS.
As you will see, the risks of not having tax planning services far outweigh the benefits.
Benefits of Tax Services
Having a strategy for your business taxes at the beginning of the tax year will save a lot of time and man hours. In fact, when the tax season arrives, you find you save even more time.
Small business owners will likely wear many hats. Running the operations from day to day is a lot of hours, to begin with. When you add on even more working hours to determine long-term financial strategies, you will find yourself pulled beyond your limits.
If you are considering whether to make a purchase or if you simply need to organize your financial information quickly and easily for tax time, tax planning will help. You do not need to put in overtime at the last minute to get the answers you seek.
Reduce Errors
Further, when you are on your own and rushed, this is a situation that is prone to result in errors. Professional accounting services prevent such errors.
A typical error that a business can make with business taxes is making a big purchase at an inopportune time and not fully comprehending their business tax. In fact, another mistake could be making a large purchase, unnecessarily, before the end of the year to increase their deductions.
If you work with a professional accounting company, you will not make these mistakes. Instead, you will have information on hand to make better choices.
Reduce Tax Liability
The goal of partnering with an accounting company that offers tax planning services is to lower the liability you have for your business taxes overall. You should pay what you owe, and not any more than that.
You want to keep as much of your money as you can to grow your business, and that is how it should be. Pay your taxes, but do not overpay in business taxes.
If you knew all the credits, tax deductions, and provisions that the government makes available to you, you would be shocked.
Use it! Leverage it!
Don’t let your good money fly out the door where you will never see it again. Tax planning can help you find the advantages that are out there for your business.
Grow and Thrive
Anytime you can make better financial decisions, it allows you to invest better in your future. When your financial projections are on par, you can strategize to increase sales and change business operations.
Tax planning is about saving, not spending more. The right accounting services that help you with tax services and tax planning will not cost you money. A good accounting company will save you money.
What can you do with the capital you save? For starters, you can spend more on digital marketing efforts to boost sales. How about hiring more employees or upgrading your infrastructure?
Think in terms of savings, which is how you can achieve expansion.
Tax Resolution Services
What if this year, it may be too late for tax planning? If you tried it on your own and landed in a tax resolution, do not fret. Get help.
Tax resolution means that you are working with the IRS to resolve a tax issue. It could just be a complex return, and the IRS contacts you for an audit. They may believe that your income is under-reported.
Other times, some businesses may have not filed for a few years, which is now a serious situation.
Do not take care of it on your own. A professional accounting company will offer the tax resolution services you need to take care of your issues. Then, you can go back to focusing on operating your business and even sleep better at night.
The faster you take care of your tax resolution, the sooner you can move on with your life and your business.
Basta+Croop For Tax Services and Tax Planning
Basta+Croop is a professional accounting services firm that will strategize, plan, service, and optimize. We help clients with advisory, accounting, payroll, and business taxes nationwide.
No matter if your financial questions are big, small, or complex, we have the right answer to help. We want you to focus on what you do best, including growing your business. Reach out to Basta+Croop today and let’s begin planning together.