There is not a single person or company that looks forward to paying more taxes come tax season. While there is a definitely a feeling a defeat when you are facing a tax bill, there are also some benefits to owing more taxes that no one ever talks about. Mark Dicus & Company is here to shed some light on paying more taxes than last year at tax season.
More Taxes Equal More Income
The most important thing for businesses to remember is that when they are paying more taxes, that means that they are making more money. This is a sign that your business is thriving. If you talk to business owners, very few of them would be okay making less money just so that they didn’t have a tax bill that is higher. It is important for business owners to remember that when they are facing a bigger tax bill, it is simply a byproduct of bigger successes.
Single Year Tax Planning is a Losing Game
When it comes to tax planning, it is important that you span your plans over multiple years of taxes not just one. Rather than trying to push income out and deductions in, business owners might try instead to:
– Accelerate income into this year
– Delay deductions to future years
While you might notice that your tax bill increases the first year, you will actually end up saving money over multiple years.
Your Taxes are Informative
You don’t want your taxes to control the decisions you make for your business. The taxes should inform your decisions, instead. This is where a good a tax advisor can be hugely beneficial. They can help you navigate financial decisions for your business. They will inform you to not just buy something for the write off. You want to make smart business decisions not decisions out of panic.
A Refund isn’t Always a Good Thing
While there are some people that will get excited about a large tax refund, it isn’t always a reason to celebrate. This means that you spent the entire year overpaying the IRS. This isn’t free money, it is money that belonged to you and is being returned. The goal should be getting not refund and not owing the government any money. That is the sweet spot that everyone should be aiming for.
Tax Planning, Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
No one likes to pay taxes, and there is no way around that. Unfortunately, there are many small businesses that are overpaying. The best way to avoid overpaying is to work with the right tax advisor. At Mark Dicus & Company, we can help ensure you aren’t overpaying and help you make sound financial decisions that will leave you on top when tax season arrives. We want you to succeed as a small business and getting a handle on tax planning is part of that. Call us today!