By April 11, 2022
Everyone’s least favorite time of the year is here- tax season. And if you don’t have them done yet, you shouldn’t panic. Just make sure you get them done ASAP or file an extension. But when you go to your CPA, or local tax preparer, here are four questions you should ask them about.
What can you do to help me achieve my tax goals?
You may or may not even be aware of what your tax goals are. But if you are going to be in business for a while, you need to start being proactive about handling your taxes. That starts by setting tax goals. You may need to work with your tax preparer or CPA to help set some of those tax goals.
And if you already know what those goals are, then you can get clear answers about what your tax preparer is going to do to ensure your case is handled correctly.
What should I do differently to make my tax situation better?
The business decisions you make all year long have a big impact on your taxes. But connecting the choices to the outcome on your tax filing can be difficult. But fortunately, your tax preparer can give you clear answers on how the decisions you make affect your taxes.
Timing of purchases, quantity of purchases, how costs can be spread out over time to help your taxes are only a few of the possible areas where your tax preparer can help you. And there is always room for improvement.
What should I start doing so I will be prepared for next year?
When we think about doing taxes, we think about April. It makes sense but it’s not exactly accurate to confine handling taxes to a few days before the deadline. In fact, if you start planning at the start of the new tax year, you will be better prepared for the next year’s taxes. And no one is better situated to tell you what you need to start doing to prepare than your tax preparer.
Is my business still structured correctly?
Just because your business was structured a certain way last year doesn’t mean it will always be the right structure. If your business has grown, you may need to move to a different business structure. An LLC may need to be upgraded to an S-Corp, but only the tax preparer can give you an accurate idea of when or if you should change. There are pros and cons for every kind of business structure and you should know before you make a decision. Your tax preparer can look at not only how much money you are making and paying in taxes now, but also how much you are likely to pay next year if your business keeps growing. And there may be a better way for your company to handle taxes. And if there are negatives to changing you should know about them and weigh them carefully so you can make a good decision.
Don’t put off going to your tax preparer any longer. If you have any questions about what you need to bring, you can always ask your tax preparer ahead of time. Or you can call your bookkeeper to get all your tax info gathered together quickly. And if you have any questions about how to get your books ready for taxes, feel free to give me a call.