For the average American, summertime can mean many enjoyable activities and unforgettable memories under the sun. For business-minded professionals, however, the ever-sunny season indicates that the tax season is right around the corner.
As far away as tax season might seem when summer comes around, know that it is never too early to start preparing your business’s documents and records. When approached with the right frame of mind, the summer can be used as a time of the year wherein necessary preparations are undertaken to easily avoid potential fines and other legal implications. By taking the necessary steps to prepare your business’s documents and carry out various tax-related tasks during the summer, it will be far easier to keep your establishment one step ahead of the competition. If you’re looking to outfit your business with the necessary preparations to keep it on top of its financial obligations, here are four ways you can use the summer to your advantage:
1. Increase your business’s retirement contributions as much as possible
One of the easiest, yet most effective ways to ease up your yearly business’s tax preparation efforts is to lower your business’s tax balance by increasing your own retirement contributions.
Taking the simple initiative to increase the deductible contributions to your business’s own set of retirement plans can significantly lower the overall amount that you’ll need to shell out during taxing. To ensure that your efforts and contributions will be duly deducted by the Internal Revenue Service (IRS), however, best practice dictates that you should be well-aware of the agency’s annual established deductible contribution limits.
2. Research and capitalize on investment opportunities that can lower your tax liability Out of all the different ways that you could possibly lower your business’s tax liabilities, the most beneficial, yet commonly-overlooked opportunities out of all are investment opportunities.
Researching on potential investments that you can make in the summer can make a significant difference in making sure that your business’s entire balance is as favorable as possible during tax time. Making certain investments—such as new equipment for your operations—can lead to various possibilities for tax deductions and significantly lower your balance while increasing both profitability and efficiency!
3. Start paying your estimated taxes right away
Paying your tax as early as possible is not only an effective way to avoid high bills and penalties, but it is also a great way to ease up the overall stress on your plate come tax time. During the summer, you’ll have the opportunity to keep your business’s image squeaky-clean in the eyes of the law by making your second quarterly tax payment of the year, with the final due date for postmarking set by June 15!
4. Hire the services of a tax professional and work with them Another key tax-related opportunity that you can jump on during the summer is the possibility of hiring and consulting with a tax professional that can point your compliance efforts in the right direction. By taking the time to contact and schedule an appointment or consultation with a competent team of experts (such as New Age Global Advisory), you can think five to ten steps ahead and outfit your business with various tax compliance practices. Working with a tax preparer or consultant not only makes it easier to spot all opportunities to lower liabilities, but you’ll also have someone who can take care of the detailed aspects for you instead!
The summertime presents a valuable opportunity that any business owner or manager can use to improve their tax compliance efforts and ease up their entire experience come tax time with the necessary preparations. If you’re looking to improve your business by keeping it tax compliant while supplementing its financial operations, supplement your efforts by outsourcing your bookkeeping to our experts today! Get in touch with us to see how we can help.