Tax planning is a process of analyzing a business situation or financial plan from a tax perspective with the objective of ensuring that it is tax efficient. It is a good time for business owners to take time out to take stock of where the business is at and perhaps take a moment to appreciate what has been achieved so far, identify what still needs to be achieved, and create a vision of where the business should ideally be in the short, medium, and long term, and to set the necessary goals to get there.
Tax planning is an opportunity for business advisors to sit down with business owners and find out how we can help them become more proactive in their businesses, provide valuable advice related to their tax position and projected earnings, and highlight how their business is actually performing as opposed to how they may think it is performing. Strategic tax planning is extremely important when it comes to the long-term success of your business. It can help defer some of the tax liability of the current year to a future tax year in order to free up cash for the business, investments, or for personal use. This is accomplished by timing when to pay certain expenses and controlling when to recognize income. Visit Perth Mobile Tax to reduce the stress of starting a tax plan.
Make your tax planning date at a time of the year when you can set aside a day to actually take a step back from your hectic schedule and assess the health of your business, and your own for that matter. Chances are that in the future your employees, customers, family, friends, and the bottom line of your business will thank you for it.
In any business, end-of-year taxes form a significant part of overall financial planning. Depending on the amount of preparation and planning you put into your tax planning strategies, it could have a significant effect on the amount of tax you eventually end up paying.
Paying close attention to the taxable income of the business and planning ahead will allow you to take timely advantage of tax breaks. By strategically managing your expenses and revenue tax deductions can be used as an incentive to reward yourself and your employees.
What is Tax Planning?
When it comes to tax planning there are certain specific things that need to be considered well in advance of the financial year-end. For example, it is important to find an accountant or business adviser early on in the year that you are happy with and to arrange a meeting during the last quarter of the year from April to June in order to ensure that your tax planning strategies will be set up correctly.
Covering all your bases ahead of the financial year-end will ensure that you are well-positioned to save thousands of dollars if not tens of thousands off your next tax bill. Like many other aspects of financial planning, clarity and improvement come through a thorough understanding and sound knowledge of how the tax planning process works.
Whether you are a small business owner or have a large company, tax planning is extremely important for the financial health of your business.
It will do you well to remember that financial planning is not all about tax, but more about gaining a better understanding of how your business is doing as a whole and putting the necessary plans in action to achieve your goals. With the right advice from professional financial planning experts, you will be surprised at how much you can expect to achieve.
Although the process of strategic tax planning may involve extra work, I believe it is a crucial area where we can provide you with further value for money.
Because your business is your livelihood it is vitally important to work with a trusted business advisor or accountant to take care of your tax planning.