With tax season over and summer in full swing, thinking about next year’s taxes may be the last thing on your mind. However, enlisting the help of a small business accountant year-round can help you even beyond tax season with proactive guidance to ensure financial fitness for both business owners and individuals.
Here are four beneficial ways an accountant can help you:
1. Year-round tax planning
Taxes are always a part of life for individuals and businesses that seem to get more complicated each year. Accountants keep up-to-date on the latest tax information so they know which tax deductions you’re entitled to and how to minimize your tax burden. Throughout the year, a small business accountant will advise you on ways you could do things differently to help keep more of your money the next time you file your taxes.
2. Establish estate and trust plans
Since your taxes can impact your estate, you may want to work with an accountant to make sure more of your hard-earned assets go to your family or charity rather than the government. Accountants can provide strategies that allow their clients to pass assets to children or grandchildren before they pass away or provide strategies that will allow non-profit organizations to benefit from a client’s generosity while minimizing the tax ramifications.
3. Provide retirement guidance
When planning for retirement, most people do not prepare for unexpected tax burdens. Whether retirement is a near-term reality or years ahead, you have many options to discuss with your accountant. Accountants can advise on some changes to make now to put you in a strong financial position during your retirement years. Your accountant can examine your current and future expenses and investments and develop a long-term cash flow and tax projection that fits your financial needs and goals.
4. Act as a business advisor
The goal of a trusted business advisor is to be available to provide insightful advice so clients can make informed financial decisions. In addition to being tax-savvy, many accountants can also guide businesses owners on ways to keep cash flowing by creating a cash flow statement, financial forecasts, and budgets. They can monitor the critical financial documents (balance sheet, P&L, and income statements) to keep your business finances in order. An accountant can assist with business payroll, taxes, and audits. With an accountant, you can make sure you have a business plan that ensures you have the available finances to manage business growth. Growth goals may require additional funding. Accountants help clients gather the information and data necessary to apply for a business loan, from quantifying the current financial condition and credit needs to identifying repayment sources.
If you are looking for help managing your finances beyond tax season, Jeanine Hemingway CPA is here to help.