Are You Overpaying Your Taxes?

We know you’re trying to do the right thing with your business, paying your taxes on time so you can avoid the risk of penalties. But do invest enough time and effort into tax planning during the year to make sure you don’t only benefit Uncle Sam, but also your own business’ interests.

Yes, you read correctly. Doing your taxes shouldn’t only involve a few weeks of scrambling to complete a submission in time. Proper tax planning throughout those 12 months could mean multiple opportunities to save and benefit your business. 

Ready to do things differently this year?

What do the Stats Say?

The numbers tell us both consumers and businesses mostly overpay their taxes:

• For individuals and businesses combined, the IRS paid refunds of over $373 billion in one year alone.
• Reports put the number of small businesses that overpay at 2000, at an average of $11 000 per business.

$11 000 is a lot of money and contrary to common beliefs, it’s not money you get back when you overpay your taxes as a business.  You heard me right, the IRS does not notify you when you file your business taxes and you overpay because you did not know about a tax benefit or strategy.  Your time is better spent planning for taxes throughout the year. Tax planning can save you some time and help you pay even less on tax than ever before? 

Is Your Uncle Keeping You Up at Night?

For many small business owners, tax time is enough to cause nightmares. Unfortunately, once at the office, you may push tax matters to the bottom of the to-do list, because it seems overwhelming. Or you rush your submission simply to get it done and to avoid penalties. Instead of planning and considering each aspect in detail, you end up overpaying your taxes. 

Tax Planning—Helping to Prevent These Common Mistakes

There are multiple reasons for overpaying and tax planning can help you circumvent most of the challenges: 

• Not taking advantage of possible deductions: You may be eligible for more deductions than you think. Have you considered benefiting from an Education Assistance Plan (EAP) and helping employees further their studies? Employees become more motivated while you benefit from their enhanced skill sets, while also becoming eligible for tax deductions. Everybody wins!
• Underestimating itemized submissions & logging small expenses: You can settle for the standard deduction or start itemizing. When done right your deduction may add up to more than the standard amount. This shows the importance of tracking expenses throughout the year. Also, don’t ignore small expenses. You’ll be surprised at how much these can add up during 12 months. All you need is an efficient system to keep track of these payments. 
• Buying or selling at the wrong time: Do you really need the new equipment or can it wait until the next financial year? You need to buy depreciable assets at the right time, or it can hurt you during tax season. To plan these expenses, you need up to date accounting figures, which once again shows the value of a proper bookkeeping process. 

Investing a little time in educating yourself and using the right resources can benefit your business exponentially in the long run. 

Never Overpay Taxes Again

Many of your tax solutions start with having accurate records of your finances and then implementing tax planning as part of your yearly goals. Precise can assist with setting up an effective accounting workflow AND help you find saving opportunities through effective tax planning. 

Taxes never have to keep you up at night again. 

Want to learn how to avoid paying more taxes this year?

Join us at this FREE webinar:

Discover Why You’re Likely to Owe More Taxes this Year than Ever Before

Let’s get you ready to put more cashback into your pocket!