Why Business Owners Need a Summer Tax Check Up
Audio version available here (2 min. 5 sec.)
Although business owners are always busy, time must be made to ensure your business is in compliance with tax laws. Doing a summer tax check up can save you time, money, and stress.
1. Tax Planning Opportunities
Around mid-year is the best time to assess your business’s potential tax liabilities and decide on strategies to optimize your tax position. Tax planning now helps avoid surprises on April 15th. You can also identify potential deductions and credits early to give you a strategic edge in reducing taxable income and keeping up with substantiation.
2. Manage Cash Flow
By understanding your tax obligation ahead of time, you can better manage your business’s cash flow. You will need cash to pay estimated taxes, and any large expenses can be planned months in advance. Without knowing your tax position, you could end up unable to pay your full tax obligation on April 15th.
3. Compliance
Estimated tax payments are vital deadlines any taxpayer who does not have income subject to tax withholding must comply with. If you are a freelancer, have side gigs, or earn any income that is not yet taxed, you will need to pay estimated taxes. Failure to comply will result in a huge tax bill on April 15th and potential underpayment penalties. The deadlines for 2024 are April 15th; June 17th; and September 16th of 2024; and January 15th of 2025.
4. Smart Decisions
Since taxes are likely your business’s largest expense of the year, tax planning goes hand in hand with smart business decisions. Whether you’re expanding, buying new equipment, or hiring, understanding your tax position and working with a tax professional is the right move.
The best way to understand the fundamentals of tax planning is to read XQ CPA’s guidebook How to Grow Your Wealth Through Tax Planning. Available exclusively on the XQ CPA website.
A summer tax check-up can provide you peace of mind. By knowing your tax situation is under control, you can focus on running your business without worrying about tax season. Not only is a check up a great business practice, it also is how you can save thousands of dollars on your tax return. Not sure how to check in on your business’s tax position? Reach out to XQ CPA’s tax professionals today! We’d love to help you.
Phone: 832-295-3353
Online Booking: https://xqcpa-bookme.acuityscheduling.com/schedule.php
Source:
Want to pay less taxes? Read XQ CPA's official tax planning guidebook! How to Grow Your Wealth Through Tax Planning.
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