Taxes are such a normal part of life that at some point you may overlook them until it’s time to file your return. That’s particularly true this year with the Covid-19 pandemic still affecting many of us and it may not be high on our priority list.
During this busy tax season, most business owners are frantically thinking about how they can maximize their deductions. With tax returns due by April 15, if we haven’t already prepared beforehand it may be too late to implement an efficient investment strategy for minimizing our tax bill.
Tax planning strategies can defer some of your current year’s tax liability to a future year, thereby freeing up cash for investment, business, or personal use. This can be accomplished by timing when certain expenses are paid or controlling when income is recognized.
For most small businesses, every penny counts. Not only do you want to optimize revenue, but you also need to minimize your tax liability.
A Wise Investment
Seeking expert advice is a wise investment in minimizing tax & protecting your wealth. Accountants do more than tax filing; they can take a comprehensive assessment of your finances and create a forecast through the year to keep your business in a healthy, prosperous state.
At TNT Accounting we offer a customized Tax Strategy Plan to our small business clients. The plan includes 2-4 tax strategies that can be implemented in the taxpayer’s business to save money throughout the year.
We prepare tax returns for both individuals and businesses in all 50 states. Individual Returns, Schedule C for Sole Proprietors, Rental Returns, Partnership, and Corporate Returns (1120 and 1120S). We also file Sales and Use Tax Returns and assist with estimated tax payments. We’ll take the headache out of all your tax planning and problems.
We can support you by easily identifying these potential deductions throughout the year and advise you on how to make strategic decisions for year-end deductions. Many business owners forget to track and account for items like depreciation, out-of-pocket expenses, and home office space.
Reasons for Tax Planning
Many small business owners don’t realize that a staggering 80 percent of U.S. businesses fail within the first 18 months. Typically, one of the main causes is poor financial management.
Despite this, many business owners go it alone when it comes to managing their money. Getting help early will save you valuable time and money in the long term.
There are a number of ways we can help you reduce your taxes. These include:
- Contribute to a Retirement Account
- Open a Health Savings Account
- Use your side hustle to claim business deductions
- Itemize State sales taxes
- Adjust Your Basis for Capital Gains Tax
- Don’t Forget State and Local Tax Breaks
Tax Strategies:
- Proper record-keeping to maximize all your deductions
- Picking the right entity to avoid double taxation
- Retirement planning
- Hiring your children to work in the business
How to Keep Your Records in Check
Record keeping is a tedious element to owning your own business that is so important but a pain to do. However, it must be done. Whether it be for taxation or legal purposes, not having your records stored could lead you into deep trouble.
Fortunately, there are some great methods that make the whole process simpler, and once utilized will speed up the whole process like using an Accountant for example.
If you did not do any record-keeping, come tax time, you could be throwing money down the drain. When tax time comes knocking, having all records of your expenses will help you take advantage of every deduction or tax credit that you are entitled to.
The life of a business owner can be isolating, especially when you’re left with a pile of receipts and invoices to plow through at the end of the month of the year. It doesn’t have to be that way. If you hire us as your accountants we can help you plan your taxes ahead of time and save you money.
