The importance of choosing the right tax consultation service provider
As a business owner, you know that financial management is critical to keeping a pulse on your business’s health. If you’ve hired a bookkeeper to assist with this, then you’re on your way to building a great financial management system. If you want to take it to the next level, it may be time to start searching for a credible tax consultation service provider.
There are several benefits of working with the right tax consultation service provider. Whether you turn to a small business accounting firm or hire a tax advisor recommended by your bookkeeper, choosing the right business advisor is one of the most important decisions you will make as a small business owner. Here are a few benefits you should expect when working with an advisor who is right for you.
Big picture, expert financial advice
When choosing a tax advisor, seek one with extensive experience working with small business owners. You want to work with someone who will scrutinise business operations and advise on financial and accounting decisions. A good tax advisor should offer big-picture financial advice as business owners often get caught up in the day-to-day business operations and forget to look at the big picture. A tax advisor skilled in small business issues can offer valuable advice to owners on major business decisions, including the purchase of a large asset or securing a loan.
Deep industry expertise
Every industry is different, and each small business is unique, so it’s important that your tax advisor fully understands the dynamics of your specific business and industry. This will allow them to deliver results and provide guidance in good economic times and bad. Ask questions to test the advisor’s knowledge and depth of understanding within your industry, and request references to learn if other business owners are satisfied with their services.
Strategic tax planning
Tax planning for your small business can help reduce the taxes that you owe. Unlike tax preparation – when you get your taxes ready for quarterly or year-end filings – tax planning means thoughtfully considering the deductions and credits your business can take throughout the year to help lower the amount of taxes you pay. In addition, tax planning helps you understand what you need to file and what records to keep. With help from a tax advisor, small business tax planning can lead to sizable savings for your business.
A tax advisor can help you maximize tax deductions for your business while adhering to taxation laws. Many businesses attempt to reduce their tax liabilities by under reporting profits or over reporting losses, which can adversely impact their ability to access financing in the future. By working with an advisor, your business will be able to take advantage of applicable deductions while maintaining your integrity in reporting.