If your business currently has all of its taxes done through a CPA or consulting firm, you may be missing out on quite a few of the benefits of advanced tax planning. Maybe your business has grown to a point where strategizing a few years ahead could save a substantial amount of money for you and your employees. But maybe you are an entrepreneur of a smaller business who is about to retire in a few years. In either case, you can receive help on a variety of issues, like helping you to come up with a defined benefits plan (for future retirees), help you to understand section 1202, and many other wily tricks to capture tax credits. Look at https://irc.bloombergtax.com/public/uscode/doc/irc/section_1202 to take a stab at these articles for yourself.
They’ll even show you how to create your own insurance to manage vulnerabilities in your business. Hopefully, by the end of this article, you will start to see tax planning as an exciting learning curve, all about discovering opportunities than a boring and tedious task.
Boost Your Accounting
The first question on your mind when it comes to tax planning should be, “are the books accurate?” An advanced tax planner will have specialists that can make sure that your books display the correct information so that the data can be properly evaluated to see what tax tools are available or necessary to guarantee you the highest returns. In the same way, a stargazer must be sure that their collected imaging data is accurate before it makes sense to try to categorize and any cosmic body and analyst its features. Luckily tax planner will indeed set you up with the right accounting system if the way you currently do things is inefficient, produces errors, or needs updating. They can consult you on what software is most efficient for your business model, too, and also teach you how to use it.
Business Valuation And Succession Planning
The current value of your business and how much room it has to grow in the coming years is surely a driving force when it comes to allocating cash for spending and taxes. The company you choose to do your tax planning will have a variety of experts in finance and can help you in evaluating your business, or even in succession planning. Click here if you do not know what succession planning is. The last thing you want is for a sudden loss of leadership in your company to leave it vulnerable to high taxation or poor management. Even if no one is leaving the company yet, a defined benefits plan can help you to max out contributions to your retirement accounts, before and even after leaving the job.
Stay Prepared For The Future
As experts in tax planning have done research on and have knowledge of how tax policies may change year to year, they’ve got the foresight on how future laws could impact taxpayers once they are passed. This is called impact analysis, and it’s one of the services that sets apart advanced tax planners from other tax professionals. For example, sunset laws affect the duration and expiration of some tax policies, like the Tax Cuts and Jobs Act implemented in 2018. Therefore a tax planner will help guide you into 2026 if there are changes to how individual income tax is collected, or limits on personal and business tax deductions, as provisions for both of these will expire.
You’ll Barely Have To Lift A Finger
In the end, a good tax planning service should truly pay for itself. GreenLight Tax Planning Services even offers a free consultation and tax-analysis to see if you’re on the right track to take advantage of the current tax system. You may not even have to pay to start saving money right away. On top of that, you can have you tax planner work alongside your CPA tax preparer so that you don’t have to change providers to get the extra help you need.
You truly don’t have to go far to reduce your exposure to taxation or risk. If you want, an advanced tax planner will guide you through setting up your own 831(b) captive insurance company in order to customize your own tax-deductible insurance policies. For example, you could create a captive insurance policy to reimburse dissatisfied customers while also protecting yourself from lawsuits.