Tax Compliance and Planning After Tax Season Ends

I know you just filed last year’s taxes, and you probably don’t want to hear about next year, but this is the best time to address some things that may make next January a much more pleasant month than this January was.

Tax filings can be pretty burdensome to a business, especially if you don’t have good processes in place for maintaining the records needed. How did your tax season go this year? Did you need to contact many of your contractors to get updated W9 information so you could send them 1099s? Were you surprised by your tax bill?

If you are like most business leaders who are not supported by an accountant that reviews your financial records throughout the year, you may have had an overly stressful year opening and several interruptions to your ordinary business to gather documentation for your accountant. We don’t like hearing when that happens, which is why we meet with our clients throughout the year to discuss ways to prepare for next year’s tax filing, reduce their tax burden, and increase their profitability.

Here are a few things we review as the year moves along so our clients are able to open their year focused mainly on their business and not on their tax return:

  • Discussing any new hires and contracts with consultants and contractors;
  • Ensuring exemption and resale certifications are collected and stored properly;
  • Update their taxability practices to comply with online sales and nexus rules;
  • Conduct an internal review to look for any red flags that could trigger a sales tax audit;
  • Review sales tax liability and payments to ensure compliance;
  • Maximizing deductions so the business gets the full benefit of the profits generated and doesn’t overpay their taxes.

State-imposed taxes can be just as onerous on your staff’s time as federal taxes. Are you confident that you have adequate processes in place to comply with regulations? If not, what’s stopping you from putting someone in place?

If you would like to discuss putting processes in place to systematize your financial growth, learn about ways to maximize your profitability, or discuss any new or upcoming tax laws that could affect your business, we’d be delighted to have a conversation with you. We’d especially like to hear from you if you were surprised by the amount you owed in taxes, or owed a lot to the IRS. We will do a complimentary review of last year’s tax filing, and let you know if you overpaid. Here’s a link to set up that complimentary tax review: https://calendly.com/ethan-hundleyadv/60min.

Reduce your chances of a stressful year opening, tax filing process, or surprise tax payments. Speak with one of our Certified Tax Planners today!