You still need tax planning services. The IRS continues to give businesses extensions and reprieves due to the lengthy COVID-19 pandemic, but those won’t go on forever. If you’re a small business, it’s always a good idea to pay careful attention to tax planning so you don’t pay more than you need or have to scramble at the beginning of the year.
Why Early Business Tax Planning Services Are Vital
No one knows what Congress is going to do each year that will impact your business taxes. But that doesn’t take away from the necessity of early planning on your part. The truth is that you can reduce your overall tax bill by keeping thorough records and making proper adjustments early.
As a small business, you want to approach the end of the year with confidence that your finances are in order. Specifically, you don’t want to find out that your income is much higher than you anticipated and realize you haven’t paid enough in estimated taxes. Another potential problem arises if you’ve made significant purchases but don’t have the documentation to prove your claims.
How to Plan for Your Business Taxes
If you want to be as prepared as possible, your small business should have taxes as something it considers frequently. While it doesn’t have to be an obsession, following these tips can help put you in the best position possible when those deadlines roll around.
Use a Financial Management Program
As a small business, you should be using some type of software (preferably cloud-based) program that will keep track of your income and expenses, and automatically import transactions from your financial institutions. Quickbooks is one example.
Develop a System for Organization
Those online programs are an excellent way to get organized. You should also have some filing systems to hold onto your tax-related documentation.
Stay Informed About New Tax Law Changes
The tax laws seem to change at least annually and sometimes more frequently. Pay close attention to those changes so you understand what might impact your business.
Make Adjustments As Needed
Tax refunds are wonderful. But wouldn’t you rather have the money working for your business during the year? As the tax laws or your business results change, make any necessary adjustments to your tax planning strategy to maximize your results.
Consult With a Professional
The tax code is complex, and a mistake can be costly. As a business owner, it’s a good idea to partner with a tax professional that can stay abreast of those tax law changes and help you formulate the best tax planning strategy as conditions change.
Get Help With Your Business Tax Planning
Nolan Accounting Center offers tax planning and reporting services to small business clients throughout Southeast Wisconsin, including Milwaukee, Greenfield, Waukesha, New Berlin, West Allis, and Muskego. Contact us today to learn more about how our services can help your business save time and money on its taxes and preparation activities.