Tax Planning: A Year-Round Journey

Good Habits Make Good Tax Filing

If you are working on your company’s accounting, you will realize it’s more complex than you ever thought. There are things you can do to make things easier with the help of a tax accountant in Miami. Tax planning should sync with financial planning. They cannot work independently. You should set some time aside to focus on the impact your income and expenses can have on the completed IRS forms and schedules. Here are some suggestions:

Every April

By then you should know more or less how your finances performed in the 2019 tax return. Make sure you have a good report on the financial status. Check the business plan and assess the progress you have made so far. Take a closer look at your finances, particularly the income tax projections. You may need to change your plan.

Monthly

Check the sales total, expenses, and purchases from the prior month. Did the revenue exceed outgoing funds? How can you compare it with the previous year? This type of information will take some time to be processed if you are doing it manually. Cloud software, on the other hand, can provide you with the answers you need in no time. You can also outsource it to a tax accountant and have one less thing on your to-do list.

Quarterly

Meet with your tax accountant in Miami to help you come up with a number for your estimated taxes and evaluate the complex financial reports supposed to be created at least quarterly. This includes Income Statement, Balance Sheet, etc.

On November and December

The last months of the year are crucial for tax planning. You have to determine how aggressively you are pursuing outstanding accounts receivable. You can increase your collection efforts or accept income for the following year. This is something you should ask your CPA in Pembroke Pines about. Some people find it advantageous to make charitable donations not only for the giving aspects of it but also for tax reasons.

Hire A Tax Accountant In Miami

While the suggestions described above seem easy to manage on your own, things can be more complex than you expected. If you do not already have a tax accountant in Miami, consider hiring one. They can be quite helpful as they deal with much – it goes beyond the numbers. They can advise the best course of action for your specific situation and help you implement new technology to improve your company’s workflow and accuracy.

Tax accountants also serve as business consultants and advise their clients on setting goals, for example, monitoring cash flow, and long-term planning. They are, of course, experts on tax codes. So, they will work closely to lessen your tax responsibility by keeping your finances up to date all year round. Keep in mind, businesses already receiving this type of support are more prepared to face and survive any financial challenges along the way.

Legal Disclaimer

Information Only / No Legal Advice Intended

This publication is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your own attorney, CPA, and/or another advisor regarding your specific situation.

To ensure compliance with requirements imposed by the IRS, we inform you that any US federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. Always seek advice based on your particular circumstances from an independent advisor. Any disclosure, copying, or distribution of this material, or the taking of any action based on it, is strictly prohibited.