Planning has got to be one of the most beneficial things we do as humans, and one of the hardest to get ourselves to do. We all know this! How many times have you ever wished that you would have taken a few moments to figure out something beforehand that came back to bite you? I won't raise my hand because it has happened more than I care to admit.
I just spent the last 3 days in a conference in which each speaker explained that the most important part of the process they were presenting was planning where you wanted to go. I think the late, great Yogi Berra put it well when he said, "If you don\'t know where you are going, you might not get there!"
The ultimate problem is, they are right. Lack of planning is a killer!
One great planning item that many business owners procrastinate is tax planning. For most businesses it is their largest expense after payroll, rent, and equipment purchases; yet, the amount of time devoted to figuring this out can be almost non-existent.
The greatest benefits our clients have enjoyed because of tax planning over the years include:
- Review of deductions and current tax laws to present choices to lower or defer taxes
- An understanding of potential taxes owing so they can better cash-flow the payment
In short, a detailed tax planning review helps you identify tax savings so you can pay the least amount of tax that you are legally allowed to pay.
All this information combines to allow a business to make better, more informed decisions. Benefits of these decisions including being able to retain more cash, putting funds towards assets to grow the business, or even to increase retirement contributions.
Now that is getting where we want to go!