Taxes are a 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 taxes are paid.
At Sloan Partners, we see clients every day who face extreme penalties because of improper planning, sloppy record-keeping and an overall lack of understanding of tax strategies. Here are just a few reasons why every business owner should make tax planning a priority.
It’s All in the Timing – Tax planning is time-sensitive, so it’s 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.
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 the CRA.
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 tax profession ever notice. Regular tax planning allows for businesses to take full advantage of annual tax law changes.
Set a Course for the Future – Tax planning can be beneficial in making important operational, growth, and succession planning decisions as your business looks to the future.
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.
We know our clients are busy running their successful businesses. The best way to get started in tax planning is to have a conversation with your accountant early. Make an appointment today with a Sloan Partners Associate. Our initial consultation is always free!
Shawn Bausch is a tax manager at Sloan Group. Set up a free tax consultation today with Shawn at firstname.lastname@example.org or 416-665-7735, extension 335.