Meeting the 2022 tax filing deadline is a key contributing factor to success for every business. Executing an optimal tax management system throughout the year and providing extra focus at filing season are the disciplines of success. AB Financial Group helps offer these powerful tax filing practices for businesses of all sizes.
Time Note: Tax deadlines for 2021 is March 15, 2022 for S Corporations and Partnerships. April 18, 2022 is the deadline for other business classifications.
Successful Practices For Year-Round Tax Management
Be prepared for the ultimate easy tax filing season by utilizing ongoing tax management systems. AB Financial Group offers the following recommendations:
- Partner with a professional. Year round partnership with a professional accountant will result in accurate tracking of income and spending. Monthly reports will inform the ultimate tax filing process along with several other critical benefits. These include cash flow tracking for course correction, and correct categorization of not only the business, but every asset and liability. AB Financial Group is the professional partner with a wide range of enterprises. Contact us today to learn more.
- Commit to accurate records. An accountant is only as good as the numbers provided by the business. Not only will correct numbers provide a confident position for filing season, it also works to identify any overlooked deductions, and decreases the possibility of an audit. Maintained with discipline, over time, accurate record keeping is a key component of successful tax management.
- Select the optimal business type. With an accurate perspective on business classification, a professional accountant is able to identify the best business classification for a company’s tax position. The many options and the tax liability differences are best navigated with a professional. In addition, the ever-changing tax regulation environment for each classification, including C or S Corporations, Limited Liability Partnerships or Companies, Single Member LLCs or Sole Proprietor, will determine the bottom line tax expense. AB Financial Group provides classification management for a wide range of businesses. We can partner with you on this critical tax decision.
- Payroll perfection. Meeting the tax filing requirements of payroll costs throughout the year will supply certainty and peace of mind at year end. Federal and State income tax code requirements are clear and comprehensive. A professional accountant service will provide the assurance that individual tax liabilities of employees are current, and will avoid a penalty cost to the company. Quarterly accuracy is required. Ongoing payroll management leads to tax management success.
Successful Practices For Tax Filing Season
Tax filing season will be successful with these recommendations:
- Gather the data. Ongoing balance sheets are the foundation. Include any IRS reported income including interest gains. 10-99 forms are provided early in the tax filing season for this reason. The IRS and the State expect to see the numbers reflected within a filing.
- Verify separation of personal and business expenses. Although an ongoing practice, reviewing the separation of any incorrect personal expense from the business accounting will serve as an additional protection from a potential audit. A careful review, as well as keeping separate business and personal bank accounts and credit cards, are the best ways to eliminate questionable items.
- Achieve 100% confidence in the net and gross income numbers. Year end is a favorable time to evaluate the cost of doing business. Identifying the ratio between the net, total sales, minus the cost of doing business is helpful on an ongoing basis, and at year end, also provides a turning point to develop strategies to reduce tax liabilities, streamline operations and increase gross income.
- Account for capitalization. A professional accounting partner will continue charging loss on applicable capital expenditures over time. Each tax filing season it is appropriate to review all eligible acquisitions for the tax period, and set them up on a tax reducing capitalization calendar. AB Financial Group knows the latest rules and regulations, and provides ongoing capitalization tax management for a wide range of entities. Let us partner with you.
- Account for expired new tax provisions.The IRS and State tax codes evolve every year. Staying on top of rules and regulations is a key benefit of partnering with a professional accountant. Consider some of the current changes:
- Expired provisions include credits for hybrid, electric and alternative fuel motor vehicles, credit for two wheeled electric vehicles, second generation biofuel production credit and alternative fuel vehicle refueling property.
- New tax provisions may include a final legislative passage of the Build Back Better Bill which is expected to introduce several new business tax provisions. Rely on AB Financial Group, to keep ahead of the latest information.
The key to a successful tax filing season is in ongoing management, attention to detail, and, most importantly, partnering with a professional accounting firm to optimize your tax position. Contact AB Financial Group to learn more.