Tax Planning for Small Business Owners

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Tax Planning for Small Business Owners
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• Small business owners should be aware of the
  taxes that they are supposed to pay. There are
  several types of taxes a small business may have
  to pay such as income taxes (both federal and
  state), employment taxes, self-employment taxes,
  sales taxes and local taxes.

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• Many small business owners are good at performing
  their core business activities and often overlook
  the importance of tax planning. Small businesses
  need to do tax planning, a process of evaluating
  various tax options to decide how to conduct
  business as well as personal transactions to
  minimize or eliminate the tax liability.

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• Tax Planning is Not One Time Activity
• Small business owners often assume that tax
  planning is a one time activity that needs to be
  considered only while filing taxes. However, tax
  planning is an ongoing activity where you need to
  analyze your income and your expenses on a
  monthly basis, if not on a daily basis. Then when
  you meet your tax advisor, you can take full
  advantage of the provisions that are legally
  available to you for tax avoidance.

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• Tax Avoidance and Tax Evasion
• Here, we are saying tax avoidance, not tax
  evasion. Though they both sound similar, they
  are completely different. Tax avoidance is
  completely legal where you structure your
  transactions so that you reap tax benefits. Tax
  evasion on the other hand, is crime where you try
  to reduce your tax liability by deceit or
  concealment. One thing that sets tax evasion
  apart from tax avoidance is the fraudulent intent
  of the business owner.

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• Tax Planning Strategies
• There are many tax planning strategies available
  for small business owners. Some are directed at
  the small business owners individual tax
  situation while some are aimed at the business.
  Regardless of whom it is targeted at, all
  strategies try to accomplish the following goals

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• Reduce taxable income
• Lower tax rate
• Control the time when the tax is to be paid
• Claim available tax credits
• Avoid mixing tax funds with other funds
• Avoid common tax planning mistakes
• In order to achieve the above mentioned tax
  planning strategies, you need to have a good
  accounting system and hire a good small business
  accounting services company.

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• Good Accounting System
• By having a good accounting system in place, you
  will be able to track your income and expenses
  accurately. This will help you calculate and file
  taxes perfectly. Also a good accounting system
  will help you plan ahead and pay your taxes on
  time.

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• Why Hire an Accounting Services Company
• Expert accountants help you with more than just
  recording transactions and preparing reports.
  They analyze your business information and help
  you with tax planning and filing. Additionally,
  qualified small business accountants will be able
  to provide many other business services. Here are
  a few of them

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• Business Consulting with years of working
  experience with multiple business owners, they
  can offer valuable insight to help your business
  grow. They make qualified referrals (may be refer
  you to an attorney) and are often good advisors
  for a new business plan, or expansion.
• Personal Financial Advice Along with your
  business financial planning they can help you
  set up your retirement plan, and help with your
  personal financial planning.

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• Financing Advice They can help you determine
  the loan suitable for your business, prepare
  documentation and provide referrals to lenders.
• One thing you need to remember here is, not all
  accountants have business management expertise.
  So make sure you are hiring someone who has
  decent experience working with small businesses
  like yours.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax preparation in Miami.
  If you are looking for Miami accountant, Heyer
  Associates would be a right option.