Corporate Tax Planning

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Taxes are unavoidable. It is impossible to avoid paying taxes when running a business. Any time a product or service is developed or sold, the business will pay taxes on the part of its profits. Taxes enable the government to provide services and protection towards the citizens. However, a business can lower its taxes and increase its working capital with tax planning. A small company can grow and be more profitable with increased working capital. The company’s accountant should discuss what types of deductions and write-offs are suitable for the business on the proper times.

Corporate tax planning is essential for just about any business to be able to meet their obligations towards the government, enhance their profits and to plan by analyzing previous years’ performance. A skilled tax accountant can guide a business from the maze of tax laws, advise about debt-reduction strategies and help you put additional cash into growth and development.

There are two key rules in tax organizing small companies. The foremost is that the company should not take on extra expenses to obtain a tax deduction. One smart tax planning approach is to wait until the end of year to purchase major equipment, but a small enterprise should do not use something but this tactic if the devices are necessary. The second rule is the reality that tax requirements to be deferred as much as you possibly can. Deferring taxes means legally putting them off until the next tax season. This frees up the money that may be available to be accustomed to pay that year’s taxes for interest-free use.

Properly controlling inventory costs can positively affect a company’s tax deductions. A tax planning accountant can advise how and when to buy inventory to create the most of deductions and alterations in stock value (valuation). There are two main inventory valuation methods: first-in, first-out (FIFO) and last-in, first-out (LIFO). FIFO is best throughout times of deflation along with in industries in which a product’s value can drop steeply, for example in high-tech areas. LIFO is far better when in rising costs, because it gives inventory in stock a lower value in comparison to prices of goods already sold.

A company’s accounting methods is going to influence its taxes and funds flow. You will find 2 main accounting methods, the money and also the accrual methods. Inside the cash method, salary is recorded if it really is actually received. This implies it actually is noted when an invoice is really paid rather of when it is sent out. The money method can defer taxes by delaying billing. The accrual approach is more complicated because it recognizes income and debt within the occasion it actually occurs as opposed to when payment is made or received. It better implies of charting a company’s long-term performance.

Good tax planning signifies that a business takes the past sales performance of those products and/or services below consideration. In addition, the state of the common economy, earnings, costs and any corporate changes need to be considered. By taking a look at previous years in line with all the “big picture,” executives can forecast in the future. Knowing an expansion or perhaps a cutback is going to be needed makes preparing it easier. The organization can stagger expenses, purchases, staff reductions, research and development and advertising as required.

A tax-planning accountant will assist an organization increase profits, lower taxes and achieve growth for future years. Discuss your business’s needs, wants, strengths, weaknesses and goals along with your corporate accountant to create a tax planning technique for the majority of these factors.

With this knowledge, it is advisable that anyone who is so inclined in seeking and who’s researching any specifics about corporate tax planning, should visit this site. We’re able to discuss in detail, several tax planning and business techniques for you, so contact us now and let us help and prepare you for the long run. Here on our website you can use the knowledge available and  speak with a professional corporate tax planning business advisors and/or Enrolled Agents who’ll help or provide the tools you need for corporate tax planning.

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As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds.


Karla, CEO of consultancy firm Karla Dennis And Associates, Inc.™, has saved her clients thousands of dollars and has been featured in various media outlets such as Forbes, MSNBC, KTLA, Yahoo! Finance, and SmartMoney, marking her as the ultimate tax expert.


As of 2014, Karla became the new host on the “Mind Your Business” radio show, KTLK AM 1150, sharing her financial and business knowledge with the greater Orange County and Los Angeles areas. As a supporter of women’s rights and issues, Karla is part of the Women Network, an organization built to educate and mentor women. In addition, Karla is the radio host for Women Network Radio, a show that aims to uplift and empower women of all walks of life.

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