Tax Basics for Your Small Business
For many people — individuals and business owners alike — taxes are overlooked.
It’s not necessarily intentional, it’s just that we’ve been trained to think about taxes only towards the end of the year when tax season is upon us, and we’re scrambling to get all of our finances together. But the reality is, preparing for tax season is something that should be happening year-round, so that come the end of the year, you’re able to fully maximize your post-tax income because you’ve been planning all year and have all of your financial data gathered and accounted for.
How to Improve your Tax Position
For anyone who isn’t a tax professional, this can be a daunting task which is why it can be so helpful to bring in a tax expert to help guide you and your business through tax planning and preparation, and help you uncover ways to improve your tax position. Our tax-saving strategies will help you and your business to:
- grow and preserve assets by keeping the government out of your pocket
- defer income so you can keep your money now and pay less taxes later
- reduce taxes on your income so you keep more of what you make
- reduce taxes on your estate so your family keeps more of what you’ve made
- reduce taxes on your charitable gifts so you can give more freely
- reduce taxes on your investments so you can grow your wealth faster
- reduce taxes on your retirement distributions so you can retire in style
Our team has an impressive depth of experience in tax planning and preparation, specifically working with small business entities, so we know the tax implications for a business like yours, as well as hidden deductions and other intricacies. We can stay up to date on the latest tax credit and deductions available to help mitigate your tax liability. We’re able to expertly guide you through the process so that there are no surprises come tax time. We can help estimate what taxes may be due, both annually and on a quarterly basis, if that applies, and help you maximize your savings and your position for the long term.
Here are some of the biggest benefits to working with a CPA, not just during tax season but throughout the year:
- For any new businesses, a CPA will help you get your business set up correctly, whether that’s a sole proprietorship, partnership, limited liability company, corporation or cooperative, and will help you understand how each of those business structures will determine your tax position
- We can help estimate what your taxes may be, both at the end of a tax year and on a quarterly basis
- We can help you understand your financial position throughout the year, making adjustments as needed
- We can help you maximize your savings and your position long term
- We can act as a resource with deep industry background and knowledge around pricing and other aspects of your business
- We stay abreast of tax changes and will notify you how any of those changes will impact your business, so you’re aware ahead of time and can make any necessary preparations
What to look for when choosing a CPA for your Small Business:
How long have they been practicing? Do they have experience working with small businesses, and experience working within your specific industry? Small businesses face a different tax situation rather than say, a large public company, and within different industries there can be major differences. Finding a CPA who has knowledgeable working experience within your specific kind of business is crucial.
Will this CPA act as your partner and communicate with you throughout the process, or will they just do the work but keep you out of it? We find there is incredible value in partnering with a CPA, instead of just handing off the work for them to complete independently. When you’re educated along the way and involved in the process, it creates a much better outcome.
Taxes are usually the biggest cost to small businesses that isn’t tracked throughout the year, so positioning yourself strategically can really help you thrive over the long term. It’s important to find a strategic partner so they’re not just getting the job done, but they’re considering implications for the future, and can help shape the future strategy for your business.