Small Business Owners and Entrepreneurs 

As an entrepreneur or small business owner in today's uncertain, post-pandemic economy, you may be struggling just to stay afloat. But regardless, nearly every business wants to save money on their income taxes to the IRS. If you're wondering how tax planning in advance helps your company, that's our discussion for this post. 

We will explain how by establishing advanced tax planning strategies, you will be able to make better financial decisions throughout the year. These decisions, made in advance for the next year, will be a huge advantage that ultimately helps your company grow and succeed. 

The IRS and Federal Tax Returns 

Planning ahead for the following tax year helps small business owners reduce taxable income. This is a primary goal and benefit many taxpayers take advantage of by effective tax planning.

Filing your income tax return means figuring out your tax liabilities for state and federal governments, so you can pay taxes.

If you don't plan ahead, you can easily end up with a tax bill and owe the IRS money for that year. Reducing your taxable income, therefore, results in lowering your tax liability, thus lowering your tax bill - the amount you pay. 

Tax Deductions 

It is of crucial importance to your company (and yourself!) to take advantage of any tax credits or deductions you are eligible for. Itemized deductions can reduce the amount of income taxed, usually significantly more than the standard deduction, most business owners find. It is one of the big reasons to save all your receipts and keep excellent records. Anything you give to charity, including goods, remember to get a receipt stating the cash value, as this is tax-deductible. 

Another example of a tax deduction many new entrepreneurs miss is mortgage interest. It's a tax break for homeowners who itemize deductions - as you do. Therefore, the interest you pay throughout the tax year, up to the first million, is a tax credit, helping you save money.

Tax credits represent extra income and savings which can significantly benefit you. Business loans with interest expenses, or interest on anything else you finance for your business, as well as insurance expenses for your company, are both lesser-known deductions. 

Retirement 

Now that you work for yourself, you'll need to think about a retirement plan. Traditional IRAs are something you should think about offering for your employees, offering its own benefit in the form of a significant tax credit.

A traditional IRA is part of many people's plan for retirement and is typically offered by an employer. That said, you are now responsible for creating your own plan to save money for retirement. 

Luckily, the federal government has options specifically designed for the self-employed, so you can begin investing in the IRA that's right for you, today.

For retirement planning, investments, and other financial advice, many business owners choose to hire tax professionals to give them an advantage. These professionals help them to save money, avoiding paying too much in taxes by reducing their tax liability, with the added benefit of additional tax planning ideas. 

Investing 

Investing is something you will need to be in a position to do when opportunities for company growth arise. However, the costs can outweigh the benefit of an investment due to capital gains taxes, which kick in once your income passes a certain threshold.

The right investments are essential for achieving your growth potential and maximum level of success. Therefore, financial advice may prove to be invaluable insurance against the overwhelming odds of failure within the first 5 years of startup.

More Tax Planning Benefits  

If you're not vigilant with tax planning , you may end up paying for that mistake when suddenly the tax deadline is upon you. If the ball drops, costs can increase your tax liability significantly until you can get caught up. Tax planning helps your company with tax advantages like: 

• Estimating tax payments for the following tax year  
• Planning business loans
• Planning losses for the company 
• Deferment of salary or income 
• Production of necessary funds for growth opportunities 
• Reduction of taxable income overall 

Boyd Group Services 

If you're a business owner interested in trying some strategic tax planning and preparation, Boyd Group Services would love to help you achieve your maximum growth potential and the level of success you're looking for.

After all, it should be pretty obvious by now that businesses enjoy a multitude of financial benefits from a little educated tax planning.

Our founder Chad Davidson is the top quality tax advisor your company needs, as a Certified Public Accountant or CPA, a successful prior Chief Financial Officer or CFO of several leading industry companies, a tax planning and tax preparation specialist, an accountant and bookkeeper , and a business growth consultant, all in one!

Here at Boyd Group Services , we offer all financial services for businesses on a temporary or permanent basis, part-time or full-time, whatever you need. Our results are the best, our quality of service is excellent, and with Chad Davidson running your finances and helping you grow your business with his proven method of success, you can't lose.

You need a tax plan that works, from someone who knows the tax code and tax laws inside and out. You need Chad Davidson and Boyd Group Services.

So if this sounds like something you are ready for, schedule a free consultation and diagnosis for your company today, right here on our website.

Find out all the different ways in which Chad can help you grow and scale your business for optimum success. Invaluable expertise and financial skills are here at Boyd Group Services , just waiting for you to make your move. So what's it going to be?