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Tax Season is Over… But Don’t Get Lazy with Tax Planning

Are you breathing a little easier to know that you made it through the business tax season in 2018? Many business owners feel the stress and pressure during the first few months of the year due to tax paperwork that needs to be distributed and filed. Plus, the income tax payments and quarterly payments can add up during this time of year. Now that you have made it through tax season, don’t let your guard down by neglecting tax planning for the rest of the year.

Working with Your Accounting Team All Year Long

Your accountant helped you get through tax season, and you should continue leaning on the support of the accounting team for financial systems and decisions that need to be made in the future. Accounting services are more than just filing tax paperwork as needed. As a business owner, you have a depth of information and support that is available to ensure the forward progress of your company.

How often should you talk to your accountant? It depends on the size of your business and the services that are needed. But, it is important to know that your accountant is always looking for ways to support your business efforts, helping with the future success that is possible.

Not only will these accounting services help with tax filing, but tax strategy can also be suggested to ensure that you are ready for taxes next year. If you want to optimize your deductions to minimize your tax burden, then you need to be strategic with your bookkeeping and spending during every month of the year.

If your accounting team doesn’t offer this ongoing support, then it might be time to find an accounting service that specializes in small businesses. Your business will have the highest chance of success if you are working with a company that isn’t just punching the clock during tax season. Instead, your accounting team should maintain a conversation with you on an ongoing basis. You can get help with bookkeeping, payroll, quarterly filings, tax planning, and more.

It’s Never the Wrong Time of Year to Think about Taxes

One of the biggest mistakes that you can make is pushing your tax strategy to the back burner for most of the year. Too often, business owners let the financial paperwork and receipts pile up. Then, it is a stressful rush to complete the calculations and paperwork that are needed at tax time.

Instead of procrastinating your financial work, it is essential that you make it a priority to keep up with these details on a weekly and monthly basis. For example, receipts should always be filed and labeled if they can be used as tax write-offs. Proper categorization makes it easy to calculate your deductions when it is time to file tax paperwork in the future.

Other essential tax planning tasks will depend on the complexity and size of your business. So, you should talk to your accountant to get the personal recommendations that are needed for your company.

Availability of Your Accountant

Keep in mind that your accountant is likely facing a huge workload during tax season. As a result, they probably don’t have a lot of time to discuss tax strategy with you a few weeks before the tax filing deadline. If you wait until the busiest time of the tax season, then your options might be limited to have the conversations that are needed for your tax strategy.

The best thing that you can do is enlist the help of an accounting team right now. Then, you can implement a good tax plan so that you are ready for anything that might come your way through the rest of the year. Most accountants have time available right now to have detailed conversations about your business. You will receive the undivided attention that you deserve to ensure that your tax strategy is designed to be a perfect fit for your company.

Tax Forms that Need to be Filed Throughout the Year

Are you a new business owner? Then you might not realize that there are tax forms that need to be filed throughout the year. Most people know about annual tax filings, but they aren’t aware of quarterly payments and other paperwork that might need to be addressed.

The paperwork varies depending on the structure of your company. Companies with employees need to pay employment taxes and file paperwork on certain dates. Owners of LLCs need to file separate tax paperwork for the business and the company. Sole proprietors can often keep all of the tax filings under the same forms.

Additionally, there might be various paperwork requirements for state and local tax requirements. Your accountant can help you assess both federal and state level paperwork and taxes that need to be addressed.

Do You Qualify for Any Tax Credits?

Tax credits might be a good option for your strategy. Some small businesses can qualify for tax credits, helping to offset the tax burden that is carried each year. Keep in mind that these tax credits can change from year to year. So, you need to lean on the expertise of your accounting team to ensure that you are staying current with the credits that are used.

In many situations, basic tax credit information is programmed into tax preparation software programs. But, strategy and planning are required if you are going to take advantage of these credits. Thousands of credit opportunities are available on federal and state tax levels. All of the credits have unique requirements, and your accountant can help you assess how your business needs to meet the requirements.

Go Digital with Your Accounting System

Have you delayed the change to move to a digital accounting system? If you are dragging your feet with the changes, then right now can be a great opportunity to implement the new system. Going digital will give you the opportunity to improve your tax strategy. Additionally, you can enlist the services of the best accounting teams since you aren’t limited by location. Digital accounting makes it possible to share your accounting records with an online team. You can also access these records from anywhere in the world.

Online software programs can help with essential tax requirements, such as tracking employment taxes and sales tax. Then, you can run reports to see how much money needs to be paid to the government. The right system can also be used to help with payroll, ensuring that you are withholding the right amount from employee’s paychecks and also making the employer contributions that are needed.

These online tax systems are secure and effective. You have control to grant access to the tax professionals that are helping your company. Lean on the expertise of a good accounting team so that you can avoid manual calculations and busy work in the future.

How Can Tax Planning Help Your Company?

Your accountant might make suggestions that will assist with the financial goals for your company. These are some of the strategies that can be built into your tax plan:

  • Decreasing the taxable income
  • Reducing your tax rate
  • Managing the schedule of tax payments
  • Identifying potential tax credits
  • Avoiding common accounting mistakes

Your accounting team will look at all of the options to manage the taxes that you are paying each year. In some situations, it might make sense to restructure your company or change the way the transactions are handled to provide the best outcome. Your accountant can analyze your situation and see if there are any areas where you might be missing out on tax benefits. As a business owner, it makes sense to maximize your tax benefits as much as possible.

Timing of Purchases and Deals

Remember that the timing of your purchases can impact your tax strategy as well. For example, if you have a low-income year followed by a high-profit year, then you might choose to purchase expensive equipment or furniture in the higher year to reduce tax burden that year. You need to evaluate where you will fall in the tax brackets to see if it makes sense to adjust your spending.

Sometimes, a purchase that you are considering in December can be pushed to January if you anticipate that you will need the write-offs more next year. So, you need to consider the cash flow and potential tax burdens, then look at the timing of the transactions for the best results in the future.

Our team of experts at Easier Accounting is always working hard to ensure optimal results for your company. We specialize in small business accounting services, giving you the peace of mind to know that you are working with a team that understands your industry. If you need tax planning or other accounting services, then we invite you to contact us for more information. We offer a variety of solutions, ensuring that the services are catered based on the needs of your company. Call the leading team of outsourced accountants if you are ready for a new tax strategy for your company: (888) 620-0770