Entrepreneurs and C-suite executives are very busy making numerous decisions all the time. Whether it is handling daily operations, meeting sales targets, or strategizing for long-term business growth, these decisions keep you occupied. In this chaos, taxes may feel overwhelming.

However, proper accrual or cash basis accounting is a powerful tool beyond simple bookkeeping. It helps you reduce tax burdens and save considerably. Collaborating with professional accounting services can be a smart move to ensure a stress free, more profitable, and compliant business. 

The right systems in place and expert guidance can turn tax season from a burden into an excellent opportunity for tax savings. Let's reveal the most significant advantages of partnering with a professional accounting service provider such as Edom & Co. CPAs for your business. 

Benefits of Prompt Accounting for Your Business

Assigning the responsibility of bookkeeping, financial reporting, and filing tax returns to accounting experts brings many benefits to your business.

Proper Tax Planning

Professional accounting services go beyond recording transactions and paying taxes on time. We perform well thought out financial mapping for your business. It is about enabling clients to make informed decisions at the right time to impact their tax liability positively while fueling business growth.

Choosing Appropriate Business Structure

Your business structure directly impacts your tax liability, as different entities need to file distinct and/or various tax returns. For this reason, determining your business structure is crucial for compliance and tax savings.

Reputable business formation and development services work closely with clients as their partners in success. We recommend the most suitable business structure based on the nature of our clients' businesses, their goals, and planned milestones.

Transparent and Up-to-Date Financial Records

Accounting experts utilize modern digital and AI tools, as well as accounting software solutions, to record financial transactions, document relevant information, and perform necessary calculations. 

Maintaining accounts with utmost transparency helps you prevent errors, penalties, and unnecessary audits. Our accounting experts maintain adequate and valid records to support all tax deductions. 

Tracking and Categorizing Expenses

Are all expenses for various purposes treated equally for tax purposes? The answer is No! Experienced accountants analyze and categorize expenses properly. 

We ensure that the deductible expenses, such as office supplies, travel, and business utilities, are claimed at the right time. That way, accounting experts continuously strive to minimize the client's tax liability.

Timing Matters

The timing of expenses, revenue recognition, large purchases, or investments well before the end of the financial year, are all aspects that matter significantly in determining taxable income. 

Our accounting experts understand the consequences and help you make smart financial decisions, thereby reducing overall tax liability.

Deductions for Retirement Savings

Businesses contribute to employees' retirement savings plans, such as a Simple Employee Pension Plan (SEP) or a 401(k) plan. 

Businesses also help their employees lead a dignified retired life through these savings. At the same time, these expenses can bring tax benefits. Our account associates help companies claim these benefits.

Proper Employee Classification

Payroll management is another crucial aspect of accounting. Classifying employees and contractors is essential for ensuring compliance and making accurate tax payments. 

As professional tax and accounting experts, we are aware of these and other related regulations. We maintain accurate payroll records, ensuring proper employee classification in order to file deductions and contributions in a timely manner.

Research on Tax Credits and Incentives

Federal and State Governments in various part of the country encourage entrepreneurship by boosting the startup ecosystem, supporting research and development initiatives, promoting sustainability, employing skilled and unskilled labor, and providing retirement savings, among other measures.

As your trusted accounting partners, we are well versed in these technical details. We categorize relevant expenses and help you claim related tax benefits. That way, we allow your business to contribute to the economic development of your community.

Timely Submission of Tax Returns

Filing tax returns, considering your business structure, activities, and government norms, can be tricky. Our professional accounting experts ensure that our clients never miss a tax deadline. Delayed tax submissions can result in penalties and interest. 

We establish a proper workflow for accurate financial recording, expense categorization, and compliance with regulatory requirements of enforcement authorities. You can rest assured about the timely filing of tax returns in an error free manner. 

Staying Prepared for Tax Audits and Inspections

Our professionals are familiar with the intricacies and technicalities of tax laws and governing authorities in various parts of the country.

Accurate accounting creates a shield with a well organized accounting system. With an error free workflow and bookkeeping in place, you can stay ever ready for tax audits and inspections. 

Wrapping Up

The blog discusses various aspects of accounting excellence, a pressing need for many businesses to comply with tax regulations while fueling business growth. At Edom & Co. CPAs, we ensure compliance and provide actionable insights to help our clients reduce their tax liability and foster business growth through our suite of Client Advisory Services. 

Choose us as your Tax and Accounting partners for accurate financial records and significant tax savings. We strive to have our clients remain compliant and audit ready.

Frequently Asked Questions (FAQs)

Q 1: What does an accounting service provider do?

Accounting service provider assists businesses with accounting partially or entirely, depending on the client's needs and requirements. Professional accountants help their clients with bookkeeping, tax filing, financial reporting and analysis, forecasting and more.

Q 2: Why is filing tax returns complex?

Filing tax returns is complex due to intricate and frequently changing tax laws, government policy updates for social and economic development, and is thus complicated to navigate without expert assistance.

Q 3: How does business structure matter for taxation?

Taxation norms are different for different business structures (sole proprietorship, partnership, corporation, and LLP). Your business structure determines the Income Tax Return Forms your entity will need to file regularly.

Q 4: How do accounting services help businesses stay productive?

Professional accounting services, such as Edom & Co. CPAs, manage Accounting and Tax related burden. Thus, businesses can rely on us and concentrate on their core activities and competencies.

Contact us today for Business Advisory, Accounting, Tax and Payroll Management Services!