Maximizing Profits in Your Small Business
Whether you are evaluating your investment returns or trying to improve your small business, it’s not how much you make but how much you get to keep. If your small business makes $500,000 a year but you lose more than half to taxes, you could end up just treading water. If you want your small business to succeed, you need to develop a smart tax strategy that allows you to benefit from your hard work and keep more of what you earn.
If your small business is in the financial field, you can probably take care of tax planning and preparation on your own. If not, you may want to reach out to a professional who can help you minimize your tax liability while growing your business, improving your cash flow and your profits.
One of the important things to keep in mind is that business tax preparation is a specialty. If your business tax return is a very simple one, you may be able to use the individual who prepares your personal return, but more complex tax situations require a more specialized approach.
Finding the Right Fit
Look for a tax preparer who has plenty of experience working with the specific type of business you own. The tax preparer who is expert at preparing returns for sole proprietorships may not have the skills necessary to prepare a complex return for a mid-sized corporation.
The interview process can tell you a great deal as you shop for a tax preparer. As the business owner, you should be asking plenty of questions of each potential tax partner, but the tax preparer should be asking you lots of questions as well. A good tax preparer gets to now the needs of every client, and they strive to understand the unique aspects of every business owner with whom they work. If the tax preparer is not curious about what you do, or if they express a reluctance to learn about your business, they may not be the right fit.
A good business tax preparer should also be able to discuss the finer details of the tax plan they propose. The plan may need some fine tuning after the hiring process is complete, but the individual you interview should be able to give you a good idea of what to expect. Be wary of any tax preparer who gives vague answers or is unable to sketch out a tax strategy for your small business.
The Bottom Line
Hiring a tax preparer for your small business is never easy, and nothing can make the process completely painless. Knowing what to look for, and what to avoid, can help you find the best fit. Once you find the right person or company, a good tax preparer should be able to save you more than enough to pay for their fees and expenses. And, as your business grows, the relationship should as well. You should be able to count on them for guidance to maximize your profits and even out cash flow gaps.
About Universal Funding
Universal Funding is a private funding source that has funded thousands of businesses and more than $2 billion since 1998. We turn your accounts receivable into the funding you need through invoice factoring and can have capital in your hands in a matter of days.