It seems that tax season is always around the corner! For many business owners, tax time is a dreaded time of the year. Even more so, if you are not prepared for it. Instead of scrambling to get all your financials in order, you can hire an accountant that to take the load off your hands. Tax time doesn’t have to roll in on a black cloud.
Early tax planning will save you time, money, and headache. When you work for yourself income taxes come with a whole new set of challenges. It is important to stay ahead of the game because it is easy to fall behind.
Why You Should Plan Now for 2016 Taxes:
Avoid Tax Surprises: When you are in business for yourself you are obligated to pay a self-employment tax to the federal government for Social Security and Medicare. It is important to know what you will be taxed on and how much you will need to pay throughout the year. If you wait until the end of the year, you may end up with an intimidating tax bill.
Meet Your Goals: By planning your tax season ahead of time you can easily see if you meet your financial goals for that year. If you did not, you can create a projection for the following year.
Learn the Financial Objectives: Understanding your company’s total operational performance is crucial to maximizing cash flow and net profits. Learning of your financial objectives will help prepare for financial stability.
Plan New Goals: Preparing your taxes early or planning ahead will allow you to plan your financial future. If your company is on the right track, you can set new goals. Planning for the future and setting new limits for a company is a sure way to achieve maximum financial stability.
Re-evaluate Future Plans: If your company did not meet the projected expectations, you should re-evaluate the company’s future goals. Find out why you did not meet expectations and create a new plan to meet your future goals. There will always be bumps in the road, but early preparations will take the strain off of any business owner.
Maintain Financial Stability: Planning now for 2016 taxes allows a business owner to maintain financial stability. The most productive way to stay on top of your taxes is to pay quarterly. A future projection will allow one to determine what will be earned, thus what you will owe in taxes. Setting aside funds to pay your taxes ahead of time will reduce any financial tax strain your business will have at the end of the year.
Don’t let tax season consume you at the end of each year. Start planning your 2016 taxes now! Call us today for a free consultation.