Handling business taxes in financial planning is a daunting task for many small businesses. It’s easy to get overwhelmed when it comes to taxes. However understanding the basics helps you make the best decisions for your business. Let’s take a look at some of the key points around tax planning and how you can use them to get ahead.
Identifying Taxes
Firstly, dealing with business taxes in planning is about identifying which taxes apply to your business. Understanding exactly which taxes your business is responsible for will help you stay on top of them. Furthermore, it saves money by taking advantage of deductions or credits that may be available.
Factoring In and using Tax Rates
Once you understand which taxes apply to your business, the next step is factoring in the applicable tax rates so that you can plan accordingly. This includes income taxes, capital gains taxes, payroll taxes, sales or use taxes (if applicable), property or real estate transfer taxes, as well as any other special or local taxes relevant to your business. Knowing these rates will allow you to calculate how much tax liability your business will have each year and adjust accordingly if necessary.
Timing of Tax Payments
Another important aspect of tax planning is timing when payments are due so that you don’t incur late fees or penalties. Your business and sector may apply regarding payment deadlines and filing dates. Know this when handling Business taxes in financial planning
Attitude towards Tax and not being fixated
Finally, having an appropriate attitude towards paying taxes is important. It’s important to remain mindful of any potential deductions or credits available to reduce overall liability. However, don’t be fixated on minimizing every single penny owed . Find a balance between paying what’s legally due while taking advantage of opportunities where possible .
Conclusion and next steps
If you need help getting started with developing your business financial plan help is here. Check out my Numbers Know Out Financial Planning software, resources, and help. Creating a financial plan may seem daunting at first, but it is well worth the effort to have peace of mind around money in your business.
What step will YOU take today to begin creating YOUR financial plan?
Sign up for a free trial on Numbers Know. You’ll have access to all of our resources and training so that you can start making informed decisions about your finances today. If you want more 121 help, a get it done approach then book to find out more.