Effective tax planning is very important to businesses as it allows them to maximize their profitability and make more accurate and informed financial decisions. Without an effective planning process in place, businesses can wind up paying more than necessary in taxes, funds that otherwise could have gone toward business operations expenses and capital investments.
For businesses today, one of the biggest challenges related to tax planning is finding the right tax professional early enough in the taxable year to help ensure that planning processes move forward smoothly and are beneficial financially. Typically, businesses start their tax planning during fourth quarter, which they believe leaves them ample time to implement the plan – but this may not be the case.
When constructing your tax plan, it is important to ensure that you are operating your business and reporting your financials in compliance with all governing tax laws. While there may be a temptation to take an aggressive stance related to tax filings, that strategy can lead to tax evasion if you as a business owner are either not knowledgeable on new, evolving regulations – or not careful enough. As taxpayers, we all have a responsibility to contribute to our society. For businesses, that contribution comes, in part, in the form of taxes.
As a best practice, business owners should consider outsourcing their tax planning and should allow the tax professionals they select to guide them appropriately throughout the process to minimize the financial risks involved.
Through an outsourcing model, your management team will gain access to proactive tax advising and planning experts who can ensure that your company remains compliant, stays on top of ever-changing regulations, and looks for opportunities to reduce your tax burden in every legal way possible. Businesses owners should consider outsourcing other corporate finance processes as well, including budgeting, and general accounting services that will allow them to produce audit-ready management reports more easily.
Selecting the right tax planning partner can be complicated as there are many firms to choose from, each with its own areas of expertise and fee structure. As a general rule, businesses should look for a partner they trust. That means doing your due diligence when evaluating contractors and accounting firms to ensure that they have a solid track record of success, references who can vouch for their work, a good reputation, and credibility in the industry overall.
As part of your due diligence efforts, be sure to also ask potential tax planning advisors how aggressive they are willing to be when developing your plan. Every business is different, and every business owner’s tolerance for risk is different. These factors should be brought out in open and honest discussions that will set the precedent for the kind of ongoing communication you will want to have going forward.
Why Partner with Scrubbed
At Scrubbed, we handle tax planning and a range of other financial services for hundreds of businesses worldwide. Our team of accounting and tax experts brings to every client engagement the required industry credentials and licenses and a proven track record of success across a diverse range of industries, from healthcare, real estate, and nonprofits to manufacturing and distribution organizations, and financial institutions. Because we operate on a global basis, we are well versed in current tax laws both domestically and internationally.
While our talented, versatile, and caring team of professionals is committed to providing your business with outstanding services throughout the tax planning process – and tax season – we can be contracted throughout the year to help with your financial and tax planning needs every step of the way. Our staff of CPAs and other professionals takes the time to truly understand your company and then apply a detail-oriented approach to our work that ensures the advice we give is timely, compliant, and that it allows you to take full advantage of all the deductions and credits available to your company.
As a result, with Scrubbed, your business can keep more of its profits ¬– funds you can use to invest in additional services, expanded product lines, and hire new team members.
Let us help you minimize your tax burden so you can focus on strategically advancing your business instead. Contact us for a free consultation today.