Thinking about Tax Time
As we approach the end of the year, we tend to get caught up in thinking about holidays and family and shopping. One thing that we often forget about is tax time.
While planning for taxes is something that business owners should be thinking about all year, it’s especially important as the year comes to a close.
You do still have time to make some important choices for your tax planning.
What to do with Profits
If you have profits, you can use some of the tax-deferred programs available, like retirement funds and annuities. Some programs are not good choices for setting up at the end of the year as they require steady deposits throughout the year, but there are others that you can start at the end of the year.
You can also use profits for things like paying ahead on your business bills. You can possibly pay ahead on office rent, utilities, postage, and other office expenses.
You might also be able to pay bonuses, which is why many businesses pay out Christmas bonuses.
Find an Accountant You Can Trust
With the help of a good accountant and bookkeeper or a good financial planner, you can make good use of the profits from the year and even this last quarter.
A good accountant* will also help you look towards next year and what you can do to lower your overall tax liability.
While a tax preparer knows how to prepare your tax return, he may not be a good choice for your business if you are looking to make smart choices before you get to the preparation part. Once you are at the preparing stage of your taxes, you aren’t able to change anything.
Plan Ahead
Planning ahead can help you and your business take advantage of all of the tax codes and lower your taxes.
Be sure to ask your accountant if he will help you plan ahead. Don’t forget to ask what he charges for consultation in addition to actual tax preparation.
Also look for an accountant who can talk to you in language that you understand. Of course we want our accountant to know all of the technical stuff, but it makes learning really tough when our accountant can’t explain anything to us in layperson lingo.
An accountant who’s willing to talk to you throughout the year and not just at tax time can be an important part of your business team.
*If you don’t have a good consultative CPA to advise you in your tax planning, call NSI to schedule an initial consultation with our tax team.
Tags: Business, Business Taxes, CPA, Financial Planner, Tax Deductions, Tax Management, tax planning, Tax Preparation, Tax Savings, Taxes
