Taxes are tricky business, making tax planning an essential tool for any business to plan ahead effectively. Regular tax planning can help business owners lower the amount of taxable income, reduce the tax liability, and gain more control of when tax is paid. Here are a few reasons that every business owner should make tax planning a priority:
A.) It's All In the Timing -Tax planning is time-sensitive so its critical to allow enough time to implement planning ideas and maximize their benefits. Good tax planning enables your accountant to potentially reduce the burden of any amount of tax to be paid.
B.) Accuracy is key - Inadequately separating business from personal expenses, missing expenses, improper compensation and overall poor record keeping can cause major headaches at tax time. Proper record keeping can help you avoid the watchful eye of CRA.
C.) Keep up with the changes - tax laws are always changing. There have been significant changes to federal tax rules in recent years. Other tax laws are tweaked every year and few people outside the accounting profession even notice. Regular tax planning allows business to take advantage of these annual tax law changes.
D.) Set a course for the future - Tax planning can be beneficial in making important operations, growth, and succession planning decisions as your business grows and looks to the future.
E.) Pay Less Taxes - Of Course - Business decisions should never be made solely to avoid taxes, but truly effective tax planning strategies allow you to do what you want while reducing tax bills along the way.
The experienced lawyers at Estate Connection Law Office know that our business owning clients are busy running their successful business. The best way to get started in tax planning is to have a conversation with your accountant early. If you are looking for a referral to a great accountant, call our experienced lawyers today. At Estate Connection we are here to help!