Posted on 14 May, 2014 in Small Business, Tax, Tips

Tax Planning - Quality time with your Accountant

Tax planning is a very important exercise to undertake with your accountant at regular intervals. When your stating out an annual review with your Accountant will help you understand how your business performed over a 12 month period and will help you identify some key performance indicators.

Below are a list of thing which you can bring up for discussion with your accountant next time you see them….

Income tax planning

One goal of tax planning is minimizing deferral income tax liability. Some strategies for this include

reducing taxable income through income deferral or shifting, proper deduction planning, investment tax

planning, and year-end planning.

Investment tax planning

Investment tax planning involves evaluating how to best position assets to minimize ongoing tax payments. This requires year-round planning, and it begins with an in-depth understanding of the tax implications of various investments and investment strategies.

Gift and estate tax planning

If you give away wealth, during life or at death, you may incur deferral taxes—and possible additional state taxes. These taxes include gift, estate, income, and inheritance taxes. We can help protect the assets you transfer from excessive depletion by understanding these taxes and the various strategies you can use to minimize them.

Business tax planning

Tax issues are never far from the mind of the business owner, and it’s likely that many of the decisions you make will be tax-based. It starts with the formation of your business and continues through the sale. Your choice of business entity, how you pay out profits to the owners, and your accounting decisions will all have an effect on your tax liability.

I know it all sounds a bit high tech, but it’s worth trying to understand.