Every business decision you make has a tax implication. While tax-related consequences shouldn’t necessarily drive any decisions you make for your small business, you should certainly understand how they impact your general goals.
If you aren’t aware of the total weight of your decisions, you need someone to provide tax help to ensure that you move your small business forward.
Not all tax advice is equal, however.
While tax advice impacts businesses of all sizes, small businesses stand to gain far more from the right help than medium and large companies.
Moreover, the smaller your business is, the greater the impact a mistake or error might have. Misguided advice or decisions at a larger organization have little relative impact on an individual person, but the same scenario at a small business affects you, the business owner, and potentially your family.
The most influential advice is long-lasting. For instance, will you save time or money? Will you avoid tax problems, such as penalties and interest fines? Above all, is the advice going to help you focus on the most important aspects of your business?
The best and most impactful advice is forward-thinking. Most likely, it is also unique to your small business.
No answer to a tax problem works in every situation. If your tax consultant isn’t asking questions to best understand your situation, his or her advice can’t possibly best fit your unique standing. If your consultant or advisor has engaged you in discussions and conversations in which you feel you’re part of the decision-making process, chances are you’ve received good advice.
Just as important is the timing of your tax help. It’s a common fault to seek advice when your small business taxes are being prepared. But at that point, it’s often too late to make any significant difference. Think about it: If it’s already 2015 and you’re preparing a filing for 2014, how many adjustments can you make?
Your business needs year-round tax services and support. You must have access to tax help whenever a problem arises.
Remember that all advice is not necessarily sound advice, and even good advice might not make much of an impact. If you need tax help – and most small business owners do – ensure that you’re applying forward-thinking advice that is specific to your company and situation.
Determine if your tax partner is right for your small business.