Many small business owners don't give much thought to tax planning and assume that it is only important one day out of the year. They couldn't be more wrong and a mistake like that could cost them thousands in tax penalties and other fees.
Here at Capium, we hear a lot of business owners complain that all their accountants talk about is the importance of tax planning and they usually just lose interest in the conversation and do nothing until it is too late. That's when they come to an accountant and ask them to fix the mess they have gotten themselves into. Now, we realize that taxes and accounting are not the best topics of conversation and nobody is going to actively seek us out to talk about their tax planning, but still, we think they should.
How important is an accountant when it comes to tax planning? The answer to that is quite simply, very important. Just as you wouldn't perform surgery on yourself or a loved one, you don't want to do your own tax planning; this is best left up to a professional. Many business owners see the importance of tax planning but miss the point of having an accountant do it for them. Using effective tax planning strategies, an accountant can ensure that you keep more of the money you earn and that your taxes are accurate and filed properly saving your business, and you, the headaches and the fines associated with correcting them later on.
Speaking of correcting tax mistakes; they are very easy to make, even for someone with experience and knowledge in the tax planning field. In fact, tax blunders happen far too often here in the UK and these blunders end up costing the business owner thousands. How do you prevent this? You guessed it, hire an accountant to prepare your tax planning strategy and get the professional tax advice you need to stay ahead of the tax collector.