'Tis the Season to Cut Your Biggest Expense!

As the year unfolds, many business owners begin to look ahead, strategizing on how to improve their operations, grow their revenues, and most importantly, reduce their costs. However, one significant expense that often gets overlooked until it's too late is taxes. 

That's right, tax season is not just a time for reporting; it's a golden opportunity to plan and save. I'm Kevin Johnson from Leverage Consulting, and today, I'm here to remind you that asking your accountant how to save on taxes isn't just good practice—it's essential.

Savings on taxes start with a thorough review of what happened in the past year and planning for the year ahead. It's in this planning phase that true savings can be uncovered. 

To maximize these potential savings, there are five critical questions you should be asking your accountant or CPA.

1. Is my business structured best to reduce tax liability?

The structure of your business ( S Corp vs Schedule C, C Corp vs S Corp, etc.) significantly affects your tax obligations. Different structures offer various tax benefits and liabilities. Your accountant can provide insights into whether your current structure is the most advantageous for tax purposes and suggest changes if necessary.

2. Are we taking advantage of all possible tax strategies?

Tax laws are complex and ever-changing. There are numerous deductions, credits, and incentives available to businesses. Ask your accountant if you're maximizing these opportunities. Everything from retirement plans to the type of expenses you can deduct can make a difference.

3. What tax strategies am I not asking about that you would suggest?

Sometimes, the most beneficial strategies are the ones you haven't considered. Your accountant, being immersed in tax law and its application, may know of strategies and opportunities that haven't crossed your mind. This question opens the door to new savings avenues.

4. In the new year, how often should we meet and how will you help me reduce my tax consequence?

Tax planning is not a once-a-year activity. It should be an ongoing process. Discuss with your accountant how regular check-ins can help adjust strategies as your business evolves and as tax laws change. Staying proactive can lead to significant savings.

5. How can we improve our record-keeping to make tax time smoother and more efficient?

Proper record-keeping is foundational to effective tax strategy. It's not just about being organized for tax season; it's about having the information your accountant needs to advise you throughout the year. Discuss how you can improve in this area.

By addressing these questions, you're not just preparing for tax season; you're setting your business up for a more financially efficient year.

Although I'm not a tax professional and do not provide tax advice, I consider it my duty to work in the best interests of my clients, offering them the information and resources they need to achieve their short-term and long-term goals. 

Engaging in a proactive dialogue with your accountant or CPA is a crucial step in that direction. Remember, when it comes to taxes, what you don't know can hurt you, but what you seek to understand can lead to substantial savings. 

Start the conversation today, and make this tax season a turning point for your business.