Can your accountant help with tax planning?
Having a good accountant as part of your business team is a real asset when it comes to issues pertaining to taxes, especially when the financial picture of your business becomes more complicated. While hiring a professional may cost you more in the short-term, it can actually save you money in the long run.
An accountant can help you during the start-up process by determining the best business structure for you specific situation, helping with a financial analysis of your business plan, ensuring that your accounting procedures are in compliance with all government regulations, and requirements, providing advice on how you track business expenses, and making sure that you’re keeping personal and business expenses separate.
Complying with tax laws and regulations that are always changing can present a real challenge for a business. An accountant can help you when it comes to closing out your books at the end of the fiscal year and creating financial reports. He or she can help with tax compliance issues such as compiling and submitting your taxes, financial reports, and all other necessary paperwork to the IRS. Your accountant can help to ensure that any independent contractors you hire are classified as such by the IRS and determining when and to which employees you should send W2 and 1099 forms and provide advice about estimated tax payments.
In addition to tax compliance, an accountant can be a valuable asset when it comes to tax planning for your business.
When your business starts to accumulate money and hard assets, tax planning becomes more important. With help from a professional that specializes in business accounting, tax planning can result in sizeable savings for the business.
Tax planning means taking into consideration all of the deductions and credits that your business can take throughout the fiscal year to help lower your tax burden. It also helps you to understand what you need to file your taxes and what records you need to keep. An experienced accountant knows how to get you the most favorable tax deductions and benefits.
Additionally, an unexpected tax bill could really have a negative effect on your cash flow management. Tax forecasting can help you keep abreast of your revenue projections throughout the year. An accountant will help you avoid getting into this situation by accurately forecasting your tax obligations. He or she can prepare multiple tax forecasts during the year to make sure the tax projections match your revenue and that your withholding’s and estimated taxes are still in line with your projected income.
Hitting your goals
At GYL, we provide a full range of accounting services for businesses, including tax planning services, designed to meet all of the financial needs of your business .
We take a proactive approach by keeping up to date on new tax laws and legislation. We can identify tax planning opportunities that minimize both your current and future tax liabilities vs. reacting to a potential problem.