Knowledge Is Power

If you have recently started a business or are thinking about starting one, you may be asking what is business tax preparation and planning? Especially if you're serious about your business, and intend to strive for the kind of financial success which affords participation in growth opportunities, thus reaching its maximum potential and greater overall measure of success. In business, if knowledge equals power - then tax and financial advisors are the key to that knowledge! Find out some of these long treasured and coveted pearls of wisdom, here in this post…



No Cheapskates!

One quick way to certain failure is to use the cheapest tax preparer you can find. Choosing a tax professional in this manner actually costs you money - to learn a hard lesson that is easily preventable. When hiring someone to help with your business taxes, keep in mind that all tax preparation services are not created equal! Some states have basic licensing requirements, but generally the only requirement for a tax preparer is that they have a PTIN (Practitioner Tax Identification Number), so be discerning. 

Typically, an adequate tax preparer will be a CPA (certified public accountant), a lawyer, or an enrolled agent. Their services don't have to cost you an arm and a leg by any means, but do some research first to be certain of who you're getting. A good tax preparer can do more than just prepare your business tax returns once a year at tax time. A good CPA can help you with a year-round tax plan that will also afford you the ability to take advantage of growth opportunities in the near future. If you're just starting your business or find you're in a rut, having this kind of financial advice can be the key to greater success.

Business Tax Basics

Forms

Small business owners can do some things to prepare for their business tax return from the Internal Revenue Service, or IRS. The tax forms you will be used at tax time vary, depending on what type of business you operate. This includes people doing business as a sole proprietor, those who are self-employed, LLCs, corporations, general partnerships, and nonprofit entities. They all have their own separate tax forms and their own laws regarding taxation that apply to them. You can also schedule a call with us to discuss your current situation and guide you in the right direction.



Income Records

There are several different income records you will need to be able to qualify for all of the tax deductions which may be possible. Here are some records you will want to get together for your small business tax preparation checklist: 

• Receipts from sales or services from the business 
• Accounts Receivable
• Returns and allowances
• Business checking/savings account interest (1099-INT or statement)
• Other income, including rental income, federal and state gasoline or fuel tax credit, or refund 

In addition, you will want to have other records for tax information such as your credit card statements, bank statements, record of business expenses, and records from your double entry bookkeeping system on your business such as the income statement and balance sheet.

The Importance Of Tax Planning 

Especially for small business owners, tax planning is one of the most important things you can do for your overall success. It is part of achieving financial security for your future, as it can help you take advantage of business growth opportunities throughout the tax year. It involves year-round planning and preparation, and you can enlist the help of a professional like us here at Boyd Group Services, where we will happily share our extensive knowledge and expertise with you. We know that tax planning and preparation is a vital part of any successful business strategy.



Reduce Liability

One of the main components of tax planning is to reduce your liability, or the amount of taxable income, reported to the IRS each year. Additionally, it gives you more control over when you pay your taxes, freeing up significant amounts of money when you really need it. To be able to take advantage of many of the incentives that are available, however, you must be familiar with the entire tax code and laws, which change each year. Boyd Group Services makes this easy, and can help you not only reduce liability and pay less taxes, but also help advise you in growing your small business.



Grow Your Small Business

If your business is surviving but that's about it, getting financial advice from a professional can make all the difference. Growing a business in today's market is tough enough, especially when you're trying to run it. Since your business is your livelihood and likely your most significant asset, your lifestyle and future depend on it. If you feel like your progress is impeded by the lack of funds necessary for significantly growing your business, make sure to schedule a call with Boyd Group Services.

What To Look For In Hiring A Professional 

One of the most important things to look for when hiring a professional tax advisor or financial advisor is the level of education and experience they have in the field. A certified public accountant or CPA is a good start, since obviously the job calls for a lot of math and accounting skills. Be sure whomever you hire has proven and recent experience, as well as connections within the community or the industry in general. Use your instincts as well, and remember this person ideally should have a confident demeanor that speaks of success, and a genuine and likeable personality. 

In choosing a firm to provide you and your small business the tax services and financial advice you need, be picky! After all, it's true that you will be entrusting a large part of the success of your business to this person. You have a responsibility to make certain it is someone you have confidence and trust in. While there are never any guarantees when it comes to finances, why would you settle for anything short of perfect, giving your business the best chance possible? Here at Boyd Group Services, we would love to help you give your business the best chance possible in reaching its potential, so schedule a call today so we can discuss your particular situation. We look forward to serving you!