Why would you even bother talking about tax planning?
The first answer is obvious – to save your business money. The second can be answered with a question – How many times have you received a huge shock after receiving your tax bill with no prior warning it was going to be so high? You need to know what your debts are going to be so you can come up with the money to pay them off. Tax is not something in our lives that will go away if we stick our heads in the sand.
What does tax planning involve?
A proactive Accountant should have asked you for your year to date financial information already. Next, you need to estimate what is going to happen before the end of June. You may have sold some property during the year and need to provide relevant details. With this information (and previous years) available, an Accountant who is experienced with small business clients can calculate an estimate of tax payable for the year, so at least you now know what the worst-case scenario is.
Due to the local economy’s distress over the last few years, the need to save dollars has become increasingly important, particularly for small businesses. This can be achieved by effectively reducing taxes. To do this you need a proactive Accountant who is experienced in small business matters to assist you.