In our last blog post, we talked about the benefits of early tax planning for individuals- however, this strategy can also be highly effective for businesses. Although most people don’t want to think about next year’s taxes less than 6 months after they filed their most recent return, starting to plan now can make an enormous difference when it comes to your company’s bottom line. It’s also worth noting that early business income tax planning isn’t just something that Fortune 500 businesses should be doing. The majority of businesses, regardless as to whether they have 1, 50, or 200 employees, often find that with the right guidance, they can garner serious tax savings come tax time.
Remember, the less money you owe to the government, the more money you’ll have to invest back into your business.
Below are just a few of the benefits of getting started now.
The biggest savings or deferral tool, and also the most inquired about, is to set up an employer sponsored retirement plan such as a 401(k), profit sharing, or Simple IRA plan:
- Plan for employer cost vs benefit
- Quality employee benefit and retention tool
- May need to set up now rather than wait until year-end
If you haven’t started planning for your 2022 business taxes, now is a great time to do it. For more information about the benefits of early tax planning for businesses, or to learn more about how working with a CPA can help you reduce your 2022 tax liability, we can help. Call the office of Hughes, Snell & Co, PA today to speak with an expert.