Most small businesses are typically not as forward-thinking as they should be when it comes to tax planning. Particularly, income tax is an area to which small business owners should give increased attention throughout the year. Hiring a CPA can implement effective tax planning ideas and help small businesses gain the advantage of planning ahead.
Because owners of small businesses pay their taxes throughout the year, tax planning should be done similarly. In fact, business owners should not make important decisions without considering the potential impact on taxes. Self-employed individuals, such as freelancers and artists, are often averse to advance tax planning as they view filing annually as a cumbersome chore that takes place each year. However, by planning throughout the year, these individuals can remain on top of their tax obligations, be more prepared for the upcoming year before it begins, and even save thousands at tax time.
Overlooked write-offs often translate to a larger tax bill for many small business owners. Advance planning and knowledgeable guidance can help owners spot deductions that may otherwise not be claimed when filing an annual return. While some people may forego certain deductions because they believe the amount is too small and, therefore, not worth the effort, even small deductions can add up to surprisingly sizable savings with proper expense tracking and record-keeping.
Technically, taxpayers have until the filing deadline to complete and submit their tax returns. However, planning should start at least as early as the beginning of each tax year. By getting an early start, businesses are better able to avoid penalties as well as realize previously undiscovered opportunities to save money that would otherwise unnecessarily be paid to the government. Although business owners are urged to start tax planning early, tax planning ideas should not be so detailed that they do not leave room to implement new strategies. Tax laws are always changing in addition to circumstantial changes that are inherent to owning a business.
An experienced, trustworthy accountant is a vital ally to any small business owner, especially those who dread tax time and would rather focus their energy and expertise on directly advancing their business. Freelancers and small business owners in Maryland, Florida, Utah, New York, and Washington, D.C. are encouraged to call Gary Kaplan, CPA. He has more than 18 years of experience in assisting small businesses and individuals with tax planning. Mr. Kaplan is available to provide comprehensive tax planning ideas and accounting services to virtually every type of taxpayer.
