Introduction
Tax filing season often equates to a time of stress, anxiety, and surprise for both individual taxpayers and businesses. However, it doesn’t have to be that way.
Proactive advisors along with a well-thought-out strategy can make this process much smoother. In this article, we provide actionable insights on how to make the tax payment and filing process a straightforward and stress free exercise.
Table of Contents
- Why You Need a Team of Advisors, Not Just Tax Preparers
- The Value of Year-Round Accounting and Business Insights
- The Importance of Regular Planning Meetings With Your Tax Team
- Conclusion: Make Tax Filing an Output, Not a Surprise
Hire a Team of Advisors, Not Just Tax Preparers
The Difference Between Preparers and Advisors
It’s easy to think that preparing and filing taxes is just about filling out forms. However, that’s a limited view. When you hire a tax preparer, you get just that: someone to prepare your tax return.
But its the tax advisors who can truly provide value. Advisors don’t just fill in boxes; they help you understand your financial landscape and guide you in optimizing your tax position.
What a Good Tax Advisor Does
A good tax advisor will work with you throughout the year, to understand your business and personal life on a deep level. These facts will help them suggesting actionable steps to optimize your tax strategy and potentially reduce your liability. They can guide you through tax credits, incentives, and even help restructure your financial affairs to minimize the amount you owe to the IRS. By meeting with you throughout the year, they will be able to provide real time analysis and recommendations to give you the visibility you need to make decisions.
Benefits of Hiring Advisors
With advisors, you can make informed decisions about your business, investments, retirement plans, and other financial activities that could have tax implications. This helps you avoid unpleasant surprises when tax season rolls around, ensuring that you’re making the most out of the tax laws to keep more money in your pocket.
Invest in Year-Round Accounting and Business Insights
The Need for Ongoing Accounting
Tax planning isn’t a once-a-year endeavor; it should be part of your regular business operations. Having up-to-date accounting records allows for real-time financial data that can be incredibly helpful in decision-making processes and to provide your tax team the information they need to advise you appropriately. We recommend hiring an outsourced accountant who can provide you financials regularly and also help you understand your business on a granular level.
Insights Beyond Taxes
With your books kept up-to-date, your team can also provide you with insights that extend beyond just taxes. They can help you understand the financial health of your business and highlighting areas for growth or improvement. These insights and recommendations can include planning for investments, new hiring, adding additional product lines, or discussing ways to increase profitability.
Planning for Future Liabilities or Opportunities
In addition to the cash needs of your business, your advisors can also forecast future tax liabilities based on your current financial state. This allows you to set aside adequate funds for tax payments, make estimated payments, and even seize opportunities for tax deductions or credits that you might otherwise miss.
Schedule Regular Planning Meetings With Your Tax Team
Why Regular (Quarterly) Meetings Make Sense
In a constantly evolving business landscape, strategies need to be flexible and adaptive. This is why the right advisor will recommend meeting regularly, we recommend at least quarterly basis. These meetings serve as a platform to discuss the current state of your business, any changes in tax laws, and upcoming business or personal life events that may affect your taxes. By meeting with your team regularly you will eliminate any surprises come time to file and pay.
What to Discuss During These Meetings
Although filing is an annual process, The Internal Revenue Service (IRS) requires certain taxpayers to make quarterly payments, and failing to do so can lead to penalties and interest charges. During these regular meetings, you should discuss the existing plan, current financial state of the business, upcoming changes that may have tax implications, and strategies to adapt to those changes. At Proseer, we make it a point to meet with our clients quarterly to assess their tax strategy, calculate expected liabilities, and recommend estimated payments.
Conclusion: Make Tax Filing an Output, Not a Surprise
The tax filing process doesn’t have to be fraught with stress and surprises. When you invest in a team of tax advisors and maintain a year-round focus on your financial strategy, the actual filing becomes a mere formality. This not only minimizes your stress but also maximizes your financial growth and stability.
Invest in a qualified team of advisors, keep your accounting updated, and engage in regular strategic planning to make your tax season smooth and predictable. It’s all about planning ahead and making informed decisions.
To learn more about how you can optimize your tax strategy and make the most of your financial situation, contact us today. We’re here to turn your tax season from a dreaded event into a planned, stress-free process.
