Most people do not take their taxes seriously enough. Either they believe the IRS won’t take action if they fall behind on filing taxes or they don’t realize that planning ahead could save them a significant amount of money in the long run. Advanced tax planning means taking a look at the big picture well enough in advance, reviewing your situation and attempting to uncover strategies that will save you money. Luckily, when you work with an expert accountant here at A & N Accounting, we’ll take all this work off your hands. Give us a call to get started or read on to learn more about the importance of tax planning.
To Pay Less Overall
Of course, the number one reason for tax planning is to reduce the amount of money you owe in taxes. This is complicated, however, as it depends on a number of variables like whether you’re self-employed, a business owner, or you’ve had a major change to your income. A tax planner will be able to help you by taking advantage of tax credits, increasing your withholding, reducing income, increasing tax deductions, and a number of other strategies.
To Maximize Benefits
No matter what strategy you’re trying to implement to reduce your taxes, the most important thing is that you get started as soon as possible. Some savings you may see during your current tax cycle, while others, it might be a year or two down the line before you see any real savings. As a result, the sooner you can start, the better.
To Account For Annual Tax Law Changes
Laws surrounding taxes change on a yearly bases, so tax planning is never just a one-time thing. Sometimes these changes could be minor, however, sometimes they may require you to completely change up your tax strategy. One time, you may need to take action before a particular law expires, while in other situations, you may need to wait until the following year to implement your new strategy.
To Ensure Information is Correct
Your tax planner needs time to ensure everything on your taxes is correct and accurate, so it’s always better to invest now than to wait. If you made a mistake that results in you owing more taxes, the IRS will charge you extra for late payment. This penalty is usually .5 percent each month and caps out at 25 percent of the total amount owed.
Contact A & N Accounting Today
Your business deserves the best when it comes to tax planning. Having a solid tax strategy will ensure that your business is saving as much money as possible and never falls behind on filing taxes. Here at A & N Accounting, we have experience working with businesses of all shapes and sizes. Our team of expert accountants and bookkeepers have years of experience helping small businesses and we hope you’ll be next. Visit our site to learn more about the financial services we provide or give us a call today to get started.