Tax planning as well as business accounting and planning for the same are crucial issues that you need to pay attention to if you are an entrepreneur. And if you are dilly-dallying on this issue for long, please note that a bad tax advisory can actually create havoc with your monetary plans and future financial goals.
However, according to many London accountants who have been serving in the accounting industry for over the last decade, the chartered tax accountants should have a bigger role to play in tax planning and business accounting than what has been actively sought by the corporate firms and SMEs. Tax accountants not only have the financial firepower to put things into perspective while planning for taxes and deductions in the future, but can also ensure that the firm is in the right books as far as saving money on tax returns is concerned.
Here are 4 more tips on how tax planning through professional chartered tax accountants can help your firm’s case, in a positive manner –
1. Increase Tax Deductions – Tax deductions are the safest way to help improve your tax plans. Unless you have hired a professional tax accountant, you will never be able to enjoy the amount of deductions that even small setups can revel in. In fact, a lot of firms mistake ad-hoc compilation of tax returns as a way of getting the maximum out of tax returns – and end up with lesser benefits than what the average-sized companies get.
2. Tax Credits Do Matter – there are several tax credits that London accountants as well as other professional chartered accountants can list out for you with ease. Some of them include spending for your kids’ tuition fees in school or college, retirement plans, insurance policies as well as for adopting children or giving to recognized charities. Heap up as many tax credits as you can muster, for the more you settle for, the less is your pay or profit amount liable for tax deductions!
3. Increase Your Withholding – The more amount you increase in withholding, the lesser your tax deductions will become. This method of tax planning is a little ‘taxing’ on your paycheck at the end of the month, but you can enjoy a larger savings too. And if you are an entrepreneur or investor in a large firm, the amount you save can actually be worth a fortune!
4. Charity Comes Back – The more you send in charity, in recognized institutions that is, you will enjoy tax rebates and more such healthy benefits. A lot of late withdrawals from the IRA as well as other government-sponsored financial services can help you earn bonus points as far as tax planning and earning rebates on filing returns is concerned.
If you are an entrepreneur, this list can prove to be a winning idea for you – especially if you were looking for minimizing the drainage of profits through unplanned tax deductions. And if you were not, well, you can still forward this tax planning guide to your boss and earn an early raise, mate!