So, it’s finally over. Tax season has come and gone yet again, and here you are considering what you can do differently next year to reduce what you’re paying or to maximize your returns. It’s all a part of the normal tax planning process that every small business owner goes through to some degree.
At George A Spencer, CPA, P.A., we have over two decades of small business accounting experience helping people just like you find ways to make the most of their finances and taxes so they can continue to grow and thrive.
In today’s blog post from George A. Spencer, CPA, P.A., in Jacksonville, we will examine some of the straight forward ways that you can help set yourself up for success with some fundamental tax planning for your business throughout the new tax year.
To get small business accounting help from the professionals at George A. Spencer, CPA, P.A., call us directly, or fill out our online form to schedule a free consultation with us.
Figure Out How To Put Your Refund To Work Growing Your Business
The first thing to take a look at entering the new tax year is exactly how you plan to put your last year’s tax refund to work for your business.
This kind of an influx of capital into your business is a breath of fresh air, but it’s crucial to be strategic about how you use it, especially for a small business owner.
Many savvy small business owners invest their refund into the business in a way that will help to generate more revenue in the coming year. Expansion projects, equipment updates, advanced training for employees, and equipment that streamlines sales or improves customer experience are all popular way to get the most out of your tax refund.
That is, of course, assuming that you received a tax refund this year. If not, then the items on the rest of this list should be of particular interest to you as they can help you do a better job of tax planning for the future.
Look Into Hiring An Accountant
One of the biggest challenges that a small business owner faces is the time commitment and attention to detail required by doing your own accounting and bookkeeping. Understandably, there is a short span in a business’ lifecycle where managing your own accounting isn’t too terrible and hiring an outside expert may not be financially feasible.
However, once you can afford it, outsourcing your accounting tasks to a small business accountant or CPA like George A. Spencer, CPA, P.A., is one of the best decisions a business owner can make.
The truth is that handling your own bookkeeping isn’t just time-consuming and hard, it can be risky, too.
Small mistakes, oversights, and miscalculations can be punishing down the road and can even threaten the financial health of your business.
That’s why we recommend that once you’ve started to generate any kind of regular revenue, you consider turning to an accounting professional to help take care of your business’ finances and provide the guidance that most you need to continue growing successfully.
Keep Your Receipts This Year
Simply put, the only bad time to start keeping better financial records is after the moment you realize you should. Simple record keeping like receipt and purchasing tracking can greatly simplify your life — or the life of your accountant or CPA — once tax season rolls around again.
You don’t have to have the perfect system at first, so don’t feel pressured to go from zero to sixty with organizing how you’ll keep track of everything. Making sure you know where everything is kept and being dedicated to making sure it all gets there is a great start.
Of course, should you decide to bring on an accountant as a bookkeeper or consultant, they can help you devise a strong system for record keeping that will set you up for many years to come.
Investigate New Tax Tools For Your Business
The new tax year is the perfect time to evaluate your current practices and search for opportunities to employ tools that can save you time, increase your accuracy, and help you better understand your business.
Some of the tools that are out there are already well known, such a QuickBooks, but you may not be using them.
Other systems and programs are newer, less well known, but could still be a great fit for your business.
Take a couple of days in the next month and dedicate some time on each to searching for business finance tools, researching them, and talking to colleagues and friends about the tools that have helped them find more success in their businesses.
Keep in mind that an accountant or CPA can also help provide you with some great options for software and tax preparation tools they think would be good for your business.
Determine How Much Capital You Need For Projects And Where It Will Come From
A new year, a new opportunity for new business.
What are the big plans that you have for your business this year? Are you planning on opening a second location? Are you determined to finally hire some help so you can grow? Maybe you’re ready to take the step from successful home business to established brick and mortar.
Whatever your big goal for the year is, the end of tax season marks the ideal time to begin hashing out all the details, most important of which is where will the funding come from.
Whether you set a new monthly revenue goal for hiring a new staff member or decide that looking into a business loan is the best way to handle the costs of moving into a new, improved space, this is the year and now is the time.
Get In Touch With The Tax And Accounting Pros At George A. Spencer, CPA, P.A. Today
For help with any of these items on your todo list, tax planning, or small business accounting services to help take you into the new tax year the right way, turn to the experts at George A. Spencer CPA, P.A.
We’ve been helping small business owners in Jacksonville for over 20 years and we would love to help your business, too. Visit us online to fill out a form for your free consultation, or call our office directly.