You may have worked hard over the years to achieve your current level of success, and you may enjoy an incredible income stream as a result of your efforts. However, you understandably may feel dismayed to see so much of your hard-earned money being doled away in taxes. The reality is that many successful individuals are paying more than they need to in taxes, and strategic tax planning may be able to help you keep more of your money in your own hands while also helping you to secure a better financial future. When you learn more about what strategically planning your taxes entails, you can more easily prioritize tax planning and better plan for the future.
What Is Strategic Tax Planning?
Many financial decisions that individuals and small business owners make throughout the year play a major role in their overall tax liability. For example, if and when you sell stocks or other investments for a gain or a loss, if you take on a new employee in your small business, which equipment you purchase or lease and more can all affect your tax liability. In addition to deductions, there are also tax credits that you may qualify for if you make a slightly different move or decision. Strategically planning your taxes involves managing your business or personal finances from a taxation perspective. It essentially means that all aspects of your financial decisions include a tax analysis so that you can minimize your tax burden as much as possible. Many of the most financially successful individuals regularly meet with a neighborhood CPA in an effort to make tax advantageous financial decisions.
Why Should You Have a Tax Plan?
If you do not have a tax plan, there is a good chance that you are paying far more in taxes each year than you need to. From a small business perspective, a tax plan can help you to avoid late fees and penalties, keep you on a lower tax rate, help you to maximize the benefits of tax credits and even minimize the Alternative Minimum Tax effects on your business. Many of these same benefits can be enjoyed by an individual or personal perspective as well. An experienced CPA can easily help you to create a feasible tax plan at the beginning of the tax year, and this knowledgeable professional can review your finances quarterly to provide you with updated information and an improved strategic for reduced taxes. You can also refer to this individual when you are preparing to make major financial decisions to obtain advice and guidance that can lower your tax burden each year.
Who Needs Asset Protection?
By reducing your tax burden, you are essentially protecting the hard-earned assets that you have accrued over the entire year. After all, why would you give more money to the IRS than you need to? Asset protection can benefit a wide range of individuals as well as business entities. Doctors, lawyers, executives and others who have a high net worth can benefit most significant from asset protection and tax planning as individuals. If you own your own business, such as a local retail shop, a health clinic, a law firm or something else, your business can benefit from tax planning. You may be surprised to learn how much money this CPA service can save you over the years. By reducing your tax liability, you will have access to more cash throughout the year to manage your business, to invest and to enjoy using in other productive and financially beneficial ways.
How Do I Get Started With Strategic Tax Planning?
Working with an expert CPA is one of the best steps you can take to get started with strategic planning. Your CPA can review your financial records and learn more about your upcoming financial decisions. Through a careful review of your financial status and plans, the CPA can create a tax plan for you that can help you to save money and improve your financial picture in numerous ways. In addition to working with a CPA, you can also improve your bookkeeping records and track all expenses. Your improved documentation can help you to maximize deductions. Educating yourself about possible deductions and credits can also help you to know which records to save and how to plan purchases and investments in the future.
Seeing your hard-earned money handed over to Uncle Same each year is understandably stressful. You may be able to keep more of your money in your possession when you learn more about taxes and develop a tax plan with a CPA. Now is the time to begin preparing for next year’s taxes. Contact Bedinghaus & Co today.