5 Tips on How to Reduce Tax Liabilities
Knowing how to reduce tax liabilities is one of the key factors to help your business remain successful and avoid brushing shoulders with the IRS. After all, no business would want to pay more than they have to. Then again, paying less than you need to might attract penalties or an untimely audit from the IRS.
That said, you need to find legal ways to reduce tax liability and invest more of your hard-earned money into other business ventures. Fortunately, there are several tax planning services that you can use to get your tax liabilities in order. FMA CPA provides business tax services and other advisory services to businesses in Tampa. Such services also limit the need to worry about IRS audits.
How to Reduce Tax Liabilities for Your Business in Tampa
As a business, you always have a margin to minimize your tax liability and maximize tax benefits. But this requires a lot of strategic planning and hiring a certified public accountant to help you get your tax deductions in order.
If you want to reduce your tax liability without getting into the IRS crosshairs, here are some tax tips you need to know:
1. Hire an Accountant
Hiring a professional to provide you with personal tax services is a strategic move and one that may save you a considerable amount of money on tax returns and tax credits.
Besides supporting you manage your finances, partnering with a reputable accounting firm also helps individuals and business owners clear up reporting issues, thereby saving you considerable time and money in the long run.
Let’s look at other benefits of an expert tax accountant:
- Trusted advice: an accountant will also be your reliable advisor, assisting you with cashflow management, keeping your books in order, planning for growth, and assessing your risks.
- Manage your business and personal needs: most business managers find their personal finances and businesses closely linked, making paying taxes for the company hectic. A professional and experienced accountant will help you make sound judgments for both your business and personal affairs.
Hiring a business accountant will provide you with a tax advantage and keep you informed about your business expenses at all times. You will also be better positioned to utilize wise planning to reduce your tax burden significantly and invest more of your money in other business ventures.
2. Create a Year-End Tax Planning Strategy
You will need a tax professional to provide you with business advisory services like year-end tax planning. With this data, you’ll know exactly what you are expected to pay and strategically reduce it. It’s a particularly beneficial strategy for small business owners.
One way you can do this is by making philanthropy a big part of your business venture. Businesses that give back to the community often take significant tax write-offs. Donating about 10% of your income to charitable causes will help eliminate most of the extra taxation.
3. Hire an Attorney
You will also need a professional and experienced attorney to help you create and manage all legal documents that protect your personal assets and legal business structure. An attorney will also show you the legal processes on how to reduce tax liabilities and other tax planning strategies.
FMA CPA has professional attorneys who will help you handle all your business advisory services and taxes for different types of businesses.
4. Use Accountable Plans
Accountable plans can also affect your tax bill and tax liability for the business. It’s important that you don’t count anything in your tax bill as a deduction, especially if you don’t have good records. The IRS can hit you hard whenever you don’t report honest/accurate tax returns.
As such, it is better to have fewer deductions and no IRS audit than more deductions and have the IRS breathing down your neck. You must do extensive tax preparation when filing your business’s income tax. You must also ensure you get your tax rates right to ensure you take advantage of the right accountable plans.
5. Know What You Can Write Off
Learning how to reduce tax liabilities is critical in helping you know what you can write off. You will know which office expenses to track. These include items such as sustainable equipment, conferences, furniture, and travel. You must also keep accurate records of your business income to maximize your deductions in different areas.
It is also important that you know what the IRS can give you tax breaks for and considers tax-free. The United States Federal Government gives all sorts of write-offs to companies that focus on employing union workers, manufacturing, exports, and minorities. You can exercise exports to enjoy several tax breaks like the IC-DISC.
Get in Touch with FMA CPA Today to Reduce Your Tax Liabilities and Maximize Tax Credits
Knowing how to reduce tax liabilities is important for any business. But why go through all the hassle when you can hire a professional to manage your tax planning services in Tampa?
FMA CPA offers you the right preparation and knowledge to keep ahead of your tax liabilities. We also offer comprehensive tax preparation services for sole proprietorships, trusts, estates, and not-for-profits. Start saving for your retirement plans today, knowing our tax credit experts do everything legally possible to reduce your tax liability. Contact us today for the best tax liability consultancy services or to schedule a no-cost consultation.