No matter what stage of growth your business is in, tax planning is essential to setting your company up for success. For many businesses, the idea of taxes can become stressful and overwhelming even if you’ve been a part of the business industry for a more extended period of time.
Part of building your company’s financial plan includes anticipating the taxes you’ll pay during tax season. There are several reasons tax planning is crucial to the growth process of your business, and we’re here to tell you how.
What is Tax Planning & Tax Planning Types?
Tax planning is when you sit down with your financial consultant and review the current financial situation of your business and how you can go about reducing tax liability. Assessing your financial situation will help reduce what you owe and get more back during the tax season.
There are several benefits that businesses can take advantage of, including:
- Rebates are a common form of refund
- Deductions that allow you to make the most of all taxable income
- Possible tax exemptions
- Government reductions or concessions
Understanding tax planning can become more manageable when you know the various types of tax planning. The different types of planning include:
- Purposive
- Short-term
- Permissive
- Long-term
Each encompasses different aspects of the tax planning process that you will review with your financial advisor. It’s time to learn how tax planning with a CPA can help your company as you enter a phase of company growth.
Reduce & Save on Taxes
The first way that tax planning helps support business growth is by allowing you to reduce the amount of taxes you’re paying. When you’re able to save money instead of allocating it to taxes, you can use these funds in other areas of the company.
For example, you can use the funds to support your business as it grows and expands into other markets.
More Funds to Invest In Your Business
Tax planning is about understanding the tax liabilities your company faces and gaining a deeper understanding of your company’s cash flow. The cash flow you gain from applying the right tax deductions increases the amount of money you can reinvest into the company.
Reinvesting in your company can help prepare it for growth and support the strategies you need to utilize to make it happen.
Tax Planning & The Growth of Your Business
Tax planning is an essential part of any business, and it’s something you need to focus on while working with your CPA if you want to be successful. Tax planning helps businesses understand the money they have to reinvest and provides various venues to save on their business taxes.
Are you searching for a skilled tax consultant to advise you about your business finances?Contact Parker Business Consulting & Accounting and let our certified public accountants help you get your business funds in order.
Parker Business Consulting & Accounting, P.C. is a unique firm with more than a combined 75 years of experience in private industry, coupled with a strong background in public accounting. This combination enables us to provide valuable assistance based on direct experience with many of our clients’ same issues.