Tax Planning Advice For Small Businesses
In today's economy, it's tough enough for most small businesses to survive these days even without having to pay more taxes than they should. But regardless of size, the rules should be the same for all businesses - shouldn't they? This is not simply the fault of the small business owner for not wanting to "rock the boat" or push tax barriers, but there are also many professional accountants who just take the raw numbers and enter them into a tax program as-is and deal with the results. They are reluctant to work as real tax advisers and help their clients to take advantage of various financial strategies that would help them to lower their annual tax bills. They neglect to plan, review or go over the figures - they just plug them in and send the bill out. If asked, these accountants often say something about along the lines of having to keep their bill affordable. They claim that their clients do not want to pay for tax advice and tax planning.
Whilst some small businesses may only be interested in getting their accounting done cheaply, surely the vast majority of them would accept that a good accountant more than pays for themselves with the tax savings that they can arrange?
Ultimately, entrepreneurs must realize that a positive balance sheet is the real objective, and that remitting more money in taxes than they need to is counterproductive. It is important for business owners to guard against relying on inadequate tax advice simply out of habit or out of an illogical resistance to paying slightly higher professional fees.
The best strategy is to seek tax planning advice that is thorough and strategic, and to do so early in the tax year in order to have the time needed to implement techniques that truly can shrink annual liabilities. The economic climate is far too competitive for any business owner to willingly part with more money in tax payments than is legally required. Even small entrepreneurs can take advantage of the kinds of smart tax planning strategies long employed by industry giants. Retaining the advice of a seasoned tax planner can make a substantial difference in a company's bottom line and can rapidly pay for itself multiple times over.
The philosophy behind such planning is not to break the law, but rather to wisely interpret and maximize the provisions already built into the tax laws in order to reduce total liabilities. Not all tax professionals are skilled in this type of sophisticated analysis, and therefore all business owners are well advised to seek the services of those who are.