Taxes are always the most difficult financial aspect of operating a business and very high on the list of usual expenses. Taxes are also the most difficult to control because, generally, you as the business owner have little to say about the amount or type of taxes that will be assessed in any given year.
There are over 70,000 pages in the US tax code, including IRS regulations and revenue rulings… and they are all written in pencil!
Pencil? Because congress can and does change the playing field annually.
I admit that I don’t have the tax code memorized but I do know what works well for the many businesses that I represent.
Typical goals for businesses should be to maximize the tax breaks afforded them and lean your operation down by cutting waste and hard costs wherever and whenever possible.
By improving profitability, you will usually see an increase in taxation. When that takes place, the trick is to look closely at business deductions of all types, weighing each to determine the immediate and long-term benefits and costs for each strategy.
Covenant Business Planning Solutions offers personalized planning services for business leaders just like you. If you’re wondering whether this is the right time to review your business planning, check out our resources at: www.covenant-business.com