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3 Signs Your Firm Needs Tax Planning Services – What to Know

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During the first few months or years of your startup, you may have enlisted bookkeeping services to stay on top of your finances. This is a smart call—after all, you cannot handle all tasks on your own. On top of that, entrusting your books to professional accountants assures you that your records are well-kept. 

However, as time passes by and your firm starts to grow, you should know that you will need a wider range of services. Aside from maintaining accurate records of your transactions, you also need to file your tax returns on time. It is for this reason that you must consider hiring tax planning services as well. 

If you are unsure if this is something you do need, here are three of the many signs that will help you find out: 

  1. You Are Generating Steady Profits Year After Year 

Generating steady profits year after year means you are growing your income at a stable rate. While this is a positive shift, you may be seeing negative changes as well—such as steadily increasing tax rates. 

This is when you know you need the expertise of accountants specializing in tax planning strategies. 

These professionals will help you throughout the year to identify ways to reduce your tax liability legally. First, they find ways for you to maximize all available tax deductions. Aside from this, they also guide you through selecting the right accounting method and the best entity type for your business. 

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  1. You Faced an Unexpected Huge Tax Bill 

You cannot afford to lose your business’ financial resources to unexpectedly huge tax bills. 

If you have experienced this unfortunate event previously, it’s best to enlist tax planning services as soon as possible. Accounting professionals can help you avoid similar instances in the future by accurately predicting your tax liability. This will give you a good idea of what your overall tax bill will look like.   

Having an estimate of the amount you need to pay in advance will give you plenty of time to prepare for this big cash outflow. 

  1. You are Selling Your Business 

As a business owner, you are naturally thinking of new opportunities every moment. While these typically include expansions or restructuring, these may also include significant decisions, such as selling your business. 

Before anything else, you should remember that selling your company is a big move. You will need the help of skilled accountants to put together essential documents and achieve a smooth turnover. 

After this, you will also need their help regarding post-sale matters. Particularly, you need to come up with tax planning strategies that can minimize your tax exposure resulting from selling the business. Accounting professionals can help you with this by taking a closer look at your finances and implementing appropriate year-round tax reduction strategies. Ultimately, they can help you protect more of what you earned. 

Conclusion 

As your startup grows, the quality and range of accounting services you need to keep it running smoothly will also expand. You may be doing well with bookkeeping services alone at the moment, but you will eventually need taxation services on top of it. This will help you preserve your business’ hard-earned money and keep you safe from fines and penalties. Ultimately, this will help you reduce your tax liability legally and prepare you for any upcoming taxes throughout the year. 

When it comes to tax planning strategies in New York, NY, we’re the ones to call! Our highly experienced accounting professionals at FiBrick offer a suite of accounting services that will help you ensure maximum short-term and long-term savings. Learn how we can help your company—schedule a consultation today! 

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