What is Tax Planning?
Tax planning is the process of looking at various tax options to determine when, whether, and how to conduct business transactions to reduce or eliminate tax liability.
Many small business owners ignore tax planning. They don’t even think about their taxes until it’s time to meet with their CPAs, EAs, or tax advisors but tax planning is an ongoing process, and good tax advice is a valuable commodity. It is to your benefit to review your income and expenses monthly and meet with your CPA, EA, or tax advisor before the end of the year to analyze how you can take full advantage of the provisions, credits, and deductions that are legally available to you.
A couple weeks ago I posted some tax mistakes that business owners make. Well, as I worked with several clients since then I found five more tax mistakes that consistently popping up.