It’s no secret business success is first measured by profit margins and the bottom line. However, leaving tax strategy out of the conversation until April rolls around isn’t the best way to stay on top of any tax law changes that could benefit your business and maximize deductions. Meeting with your business’s accounting professional for quarterly financial planning and review is one of the best strategies to stay on top of taxes and streamline your business’s finances.
Focus on Business Operations
Your accounting professional can help you get a system in place for your business to document and record all your monetary transactions. Meeting with your accounting professional quarterly ensures that your systems are working correctly and you have the documentation you need for tax season. Fixing an accounting mistake from one month ago is much easier than fixing a mistake from six months ago. Rather than file for a tax extension to correct mistakes, quarterly meetings address errors promptly.
Save Time and Frustration on Paperwork
When it comes time to pay your taxes, having an accounting professional relieves the burden of completing confusing paperwork. The time it takes to fill out tax papers and provide all the necessary documentation is time you could otherwise spend running your business. Meeting with your accounting professional regularly ensures your taxes will be in order, can be filed on time and allows you to take advantage of electronic filing. Otherwise, it can be frustrating trying to find the necessary documentation when looking back through twelve months of records. Timely filing is critical as of recent; 2020’s tax returns saw a 3% increase in the backlog of paper IRS filings.
Keep Organized and Verified Documentation
Documentation and verifiable spending records are also crucial for keeping track of any tax deductions that you will claim to help offset your tax responsibility. Any purchases and new expenses may be excellent opportunities for tax write-offs if you have verifiable receipts to claim your assets. Regularly scheduled meetings ensure that you can consult with your accounting professional before purchasing so that you can maximize tax deductions.
Know How Tax Laws Can Benefit Your Business
The very purpose of having an accounting professional is to help keep your business’s fiscal affairs in order. A primary responsibility of your accountant is keeping up to date on the ever-changing landscape of business tax laws. Many tax law changes can provide significant benefits to your business. Quarterly meetings with your accounting professional ensure that your business is neither overpaying or underpaying, causing potential audits or hefty repayments in the future.
Stay Current on Tax Payments
If you have to make tax payments, having regular contact with your financial professional ensures that your payments are on time and in order. You can check your profits against the prior year’s quarters and estimate your expenses for the following year. Accurate business projections and foundational planning steps are often conducted in quarterly review meetings.
Get Help from the Professionals
Reach out to KDK Accountancy to learn more about how you can maximize your business income and take the headache out of filing your taxes. We provide full-service accounting to small and larger businesses across multiple industries.
Contact our financial professionals online, or call us directly at (407) 759-5363 today!