Signs You Need Help from a Tax Planning Expert

Tax planning goes beyond preparing and paying your taxes correctly and consistently. With tax planning, you’re developing a strategy that navigates the complexities of tax laws and benefits to ensure you don’t miss any opportunities. Therefore, tax planning is a critical component of your overall financial planning strategy as you aim to achieve your operational goals. 

But while tax planning is crucial to helping your business succeed, you may not be immediately aware when it is time to seek professional help. Here are some signs you may need help from a tax planning expert: 

Rapid Business Growth 

It’s the goal of most business owners and individuals to expand their wealth. However, earning more money means you will need to transition to the next tax bracket, which increases your tax liability. When working with a tax planning professional, you can establish a strategy that leverages tax laws and benefits and ensures you don’t miss any opportunities on your taxes. A tax planning expert also helps you maximize your after-tax income, which may provide new streams of future income. 

Multiple Income Streams 

Multiple streams of income can make tax planning even more complicated. All of your sources of income, whether it’s from your wages, other business, or investment earnings, may be subject to taxes. However, each specific income stream may qualify for certain tax credits, and some withdrawals and contributions may even be tax-free. A tax planning expert can help you strategize so you can increase savings across all your income sources. 

An Audit History 

If you’ve been audited in the past, you’ll know how stressful it can be. You may have accidentally calculated wrong, reported too many losses, deducted too many business expenses, or claimed deductions you should not have. Working with a tax planning team means ensuring your finances and tax return are accurate and that you’re not claiming deductions that may trigger another audit. 

Little Time to Focus on Taxes 

The months speed by quickly as you juggle the demands of your professional and personal life. Because filing taxes come with a specified due date, it’s not uncommon for people to set aside tax preparation and planning for later. But if you find that you’re always scrambling to get your taxes done, you’re more likely to make mistakes or miss out on money-saving strategies. A tax planning expert helps you stay on top of your taxes, reducing the risk of errors. 

Tax Compliance Risks 

The tax code changes frequently, and if you’re not paying attention, you may find yourself with a tax burden and out of compliance. A big part of tax planning is staying up-to-date on all tax law changes to ensure you’re meeting local, state, and federal tax requirements. 

Lack of Knowledge in Tax Planning 

Tax planning involves applying deductions, protecting assets, and maximizing allowances, exemptions, and exclusions. While its connotation suggests that these are intentional and obscure acts to minimize tax liability, tax loopholes are legal and leveraged by those with expert tax law knowledge. And without this knowledge, you may be paying more taxes than you should and losing money that could have been reinvested into your business.    

The tax professionals at Golden Tax Relief have decades of experience in tax planning. If you recognize the signs in yourself or your business that it’s time for expert tax planning, click here for a consultation or call 844 229 8936.  

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