One of the keys to running a successful business is how you manage your taxes. Just like you wouldn’t like to spend too much on manufacturing products, you would also not want to spend more than required on taxes. Most businesses want to lower their taxes as much as they possibly can. There is nothing wrong with that, but remember that the only way to legally lower your taxes is to plan them strategically.
Why Should You Be Strategic with Your Taxes?
Most people fail to think about their taxes in a planned and strategic manner, which is why they often fall prey to excessive taxes. People who devise effective tax planning strategies are often the ones who succeed in business. Karla Dennis, one of the most highly experienced people in the field, believes that being strategic in business is important for being a successful business owner. Karla is the founder and CEO of Karla Dennis and Associates, Inc. Karla believes that if you think strategically about your income taxes, you can successfully lower them. She believes that you can control the amount you pay if you think strategically about taxes and plan them wisely.
Four Things to Keep in Mind While Planning Your Taxes
Karla Dennis believes that the key to planning taxes efficiently rests on these four pillars: time, transactions, future goals, and tax laws. Let’s break each of these down for you.
Karla suggests that it is very crucial to plan your taxes ahead of time. In her book Tax Storm, she emphasizes over and over again that if you stay ready, you don’t need to get ready. This means that if you plan your taxes throughout the year, they won’t give you a headache at the end of the year. Also, the chances that you will commit blunders if you do your taxes in a rush are always high. So, always take time into account and constantly keep documenting and planning your taxes.
You have to be really creative and careful when it comes to transactions. Each and every transaction, no matter how small or big, impact your taxes. So, always vet out the tax implications whenever you are spending money or making big life decisions for yourself or your company.
- The Future
You need to have a clear understanding of your future and future goals in order to be able to plan your taxes wisely. Karla believes that linking your future goals with taxes is very important. For instance, if you are getting married, buying a home, or buying a car, you need to ask yourself how will this impact your taxes in the future and how can you structure the transaction and the timing of the transactions to be tax-smart. It will affect your taxes in the future. While making transactions, you need to be thinking about how to make the most out of them from a tax perspective.
- Tax Laws
Karla Dennis suggests that as a business owner, you need to be aware of the changing tax laws because that frequently happens. If you stay outdated, you can end up paying unnecessary taxes. You need to be aware of the current tax laws so that you can devise your business and tax strategies accordingly.
If you are having any complications regarding managing your taxes, you can always rely on Karla Dennis and Associates, Inc. Kara will help you understand how to navigate the tax laws and make the most out of your business. Karla Dennis and Associates, Inc. will look into your financial information and help you devise a perfect strategic plan for your taxes.