Tax planning is becoming more popular over the years and tax professionals are beginning to understand how this service is integral to a business owner’s prolonged success.
However, business owners may not fully understand what tax planning is and how it can help their business sustain their profits. Let’s first start with the definition of tax planning.
Tax planning is the analysis of a financial situation in order to achieve tax efficiency. Tax efficiency is when a taxpayer pays the least amount of taxes required by law. Tax planning is not illegal and a business owner cannot go to jail by using tax planning.
Tax planning is a strategic process that you must do effectively and consistently. It is not a one and done act. Tax planning covers several considerations. Considerations include timing of income, size and timing of purchases, and planning for other expenditures. Also, the selection of investments and types of retirement plans must complement the tax filing status and deductions to create the best possible outcome.
When mentioning tax planning most business owners immediately think of maximizing their deductions. The differentiator between our firm and other firms out there is our tax planning services do not focus solely on writing off as much as possible, but on how we can use the profits of your business to expand your operations, secure your future, and leave a meaningful legacy.
Tax planning is a process that is year long and not just January - April. If you are running a successful business, you will need tax planning services to help you grow to the next level.
When that time comes, Simon Accounting Services will love to help you. We Can’t Wait to Grow With You!
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