Tax planning is typically not the first item on an entrepreneur’s list of to dos. From developing customer retention strategies, to setting growth initiatives, to meeting financial goals, the fast-paced and all-consuming nature of business ownership is highly demanding.
With so much to juggle on a regular basis, it can be tempting for business owners to treat tax planning as an annual activity, to be dealt with only once a year when taxes must be filed. However, there are benefits to be gleaned from reviewing and refining a business’s tax strategy throughout the year.
Why is Year-Round Tax Planning Important?
Cultivating a strong tax strategy means treating the process as a living, breathing thing, rather than something set in stone after one discussion or draft. By frequently reviewing tax strategy throughout the fiscal year, businesses and founders put themselves in a better position to respond to situations that may arise at any time, such as buying other businesses, making investments, and adapting to changes in income.
Proactive, periodic tax planning is an excellent way to stay one step ahead of the game. By projecting income tax liability in advance, and routinely implementing smart strategies to minimize tax burden (such as taking advantage of the right deductions and gift and estate tax rates), business owners can potentially save more each year.
How to Conduct Year-Round Tax Planning
There are a few simple steps business owners can take to engage in regular tax planning. First, it starts with good Accounting. The IRS recommends keeping tax records organized by developing a system that keeps all important business information together. It is also useful to keep track of net income, gross income, and your business structure’s tax liability (e.g. the current corporate federal tax rate is 21%).
Keeping tabs on these figures makes it possible for a business to know their financial standing with certainty, allowing for more accurate forecasting and planning as well as smarter spending.
Work With a Tax Team for Support
A professional tax team plays an instrumental role in ensuring that a business’s tax plan remains up-to-date, and reflective of various situations and changes as they occur in real-time.
At Proseer, we structure our engagements as subscriptions so that clients can benefit from professional guidance and support that will allow them to optimize their tax processes. Having access to our team all year, and having structured quarterly meetings to revisit strategies helps keep our clients better organized, and to limit surprises.
Proseer supports clients regularly with quarterly meetings and ongoing recommendations for a smart tax approach. We offer annual or monthly subscriptions, and do not charge by the hour—instead, we make ourselves available to our customers for routine consultation. Get in touch to learn more about getting the tax planning support you need.
