What is Business Tax Planning and Do You Need It?

Business tax planning involves assessing the current tax situation of your business, as well as planning future tax strategies to help minimize the business’s tax liability. When designing a  tax plan, business owners must consider a number of factors, Including:

• Types of gross income
• Business structure
• Accounting methods used to report income and expenses
• Tax laws in effect at the time

Tax planning also involves managing deductions and credits, as well as identifying and utilizing potential tax savings strategies

Do You Need Business Tax Planning?

Whether or not a business needs tax planning will depend on the size and complexity of the business. The larger and more complex the business, the more important tax planning becomes. A business owner should evaluate their current tax situation in order to determine if it can benefit from professional tax planning. If any of the following situations apply to you, then you may need the help of a professional planner:

• You are concerned about how much your business pays in taxes
• You want to ensure that it is in compliance with the applicable tax laws
• You are expanding and need to determine the most advantageous tax structure for your new operations
• You are changing your accounting methods, or changing the way you report your income and expenses.

How Can Business Tax Planning Help Your Business?

Tax planning can help with everything from reducing your overall tax liability, while still complying with the tax laws to maximizing your deductions and credits. An expert planner can help identify and implement tax-saving strategies.

How to Get Started With Business Tax Planning

The first step in business tax planning is to assess the current tax situation of the business. This involves:

• Reviewing the types of income, expenses, and deductions.
• Assessing the current tax law, as well as staying up to date on any upcoming changes
• Developing a plan for both short-term and long-term strategies to help the business minimize its tax liability

Business owners should include strategies such as changes in accounting methods, reporting of income and expenses, and other tax-saving strategies that benefit the business.



A tax professional can provide valuable advice on the best way to design a plan for your business.

Closing Statement

Business tax planning is an essential part of running a successful business. While tax planning can be complex, it can pay off in the future. The key is to assess your business’s current tax situation and to develop a sound and effective tax plan. Call one of our friendly team members on (405) 384-4900 or EMAIL to book your appointment today.