As accountants and bookkeepers, we’re thinking about taxes January through December—for us, every season is tax season. We encourage business owners to adopt this mentality and be strategic about the ways they spend money and budget throughout the year. Why? It will expedite the filing process for business taxes and help them reduce their liability.
If you have guaranteed expenses in the next six months that you’ve been planning for, let’s look at the tax benefits of pulling them into this quarter. Not every business owner will have the cash flow to do this, but we can look at the ways having these extra write offs will offset the return for your business taxes. Unlike a traditional accountant who only reviews your financials on a quarterly or annual basis, the Accountfully team has an intimate knowledge of your finances and can make suggestions that come from our day to day review of your cashflow and expenses.
Just because the work is done doesn’t mean it’s necessarily time to send a bill. At the end of the year, we often advise clients whether or not it’s wise, from a tax perspective, to send an invoice for completed work. For some, it’s better to push income off to the next year then it is to claim it before the year ends. This is different for every business but when you’re working with an outsourced accounting firm like Accountfully, your team is familiar enough with your budget and sales cycle that they will help you decide when and how much you should invoice for.
Even if you’ve adopted a year long tax strategy, you should be working with a team that is always available for questions and concerns. Especially at the time of year when there are still a couple more months to make strategic tax related purchases, business owners should be asking their accounting team questions about how they should be allocating their money.
You know what’s worse than finally spending that five thousand dollars on office furniture? Realizing on January 5, of the new year that if you bought it last week, you’d have improved your tax standing.
Work with a team of experts that can help you adopt a year round strategy for business taxes that will save you time, money and headache.