Business Tax Planning

Business Tax Planning

Tax Planning Strategists and Business Consultants in Phoenix

How does your Phoenix business handle its taxes? If you’re like many small business owners in the state of Arizona, you may turn to TurboTax or H&R Block’s DIY tax filing solutions. 

The term cheap applies to those types of solutions in both of its contexts. They are a lower cost alternative to professional business tax preparation services and they’re inevitably of a lower quality. Despite their inherent limitations, using DIY business tax software is adequate for some small businesses, independent contractors and sole proprietors with extremely straightforward businesses and no complicating factors. 

However, if your business doesn’t fit the cookie-cutter mold, you may run into issues both in terms of compliance and opportunity costs.

Tax preparation software is not an alternative to tax planning strategies. It’s simply a glorified calculator that plugs numbers into boilerplate IRS forms. They can’t help you take steps in your business dealings or your business’s billing, records keeping or bookkeeping practices that will position you to get the most out of your potential tax credits and deductions. 

That’s why working with a business and tax consulting team like H&H Accounting Services can be so lucrative. We can (and would be happy to) prepare your business taxes. We can handle all your other bookkeeping and accounting services as well. 

Our Phoenix business consultants can do far more than just prepare your taxes, handle your payroll or manage your books. We will strive to help you owe the government less so you can invest those savings back into your business. 

Verifiable Return on Investment

It’s easy to view business consulting services, like tax planning strategies, as another added expense rather than an investment with a quantifiable ROI. Unlike some consulting services, like interior office design or branding, you actually can clearly track the return on investment you get from hiring a tax planning strategist for your business. All you need to do is a YoY comparison of your taxes (adjusted for revenue) to see exactly how much you’ll save thanks to our tax planning strategies.




Advantageous Adjustments of Your AGI

Your business’s adjusted gross income is really the key metric when it comes to calculating tax burden. In many cases, your taxes are simply a percentage of that number. It’s also how brackets are determined. Steps you take to lower your AGI may shift you into a lower bracket and result in seriously meaningful tax savings. 

As an LLC owner or sole proprietor there are several potential ways you can legally reduce your AGI through salary adjustments. Examples include things like tax-deferred retirement plan contributions, itemizing instead of taking the standard deduction or making contributions to an HSA. 

Strategic Tax Elections   

Your business’s expenses can have a direct impact on your tax burden. For example, investments in new equipment may lead to lucrative deduction opportunities. Alternatively, depreciating existing assets can allow you to spread those benefits out over years instead of getting them all at once. A tax planning strategist can help you understand which will be most advantageous based on your AGI and future projected income. 

The IRS offers a diverse array of deduction opportunities, but not all of them are easy (or safe) depending on your circumstances. Deducting office expenses can be lucrative, but also potentially problematic if you can’t back it up with receipts. 

A tax planning strategist can make sure your strategy both maximizes tax savings and shields you from audits. 

Timing

Asset acquisition can play a significant role in reducing your tax bill, as long as they’re purchased in the right year. Carryover deductions and tax credits can yield significant benefits even if you don’t fully use them this calendar year. Things like capital losses and deferring taxable income can be leveraged for your benefit in the future if you and your tax planner understand timing and its implications for your taxes. 

Get Help With Your Business Tax Planning in Phoenix

Aren’t sure if you should be using cash-method accounting? Don’t know whether it would be better to abandon property rather than report a capital loss? These are tough questions for many small business owners. The right answer might not always be the same for every business, and it likely won’t be obvious at first glance.


Working with a tax planning strategist who understands your business and goals can help you answer the tough questions and take the steps today that are necessary to save you money in the future.


Talk about your tax planning options with our business consultants and tax specialists by calling (480) 561-5805.


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