Tax planning helps you do more with your money

Tax planning is a strategic approach to managing your business’s financial affairs to minimise tax liability legally. In other words, you plan ahead to make sure you pay the taxes you should be paying, but not a penny more.

Working with your tax adviser, you can look for deductions, credits, exemptions, and tax-saving strategies that will help optimise your company’s overall tax position.

How does tax planning affect your business?

Tax planning primarily aims to reduce the taxes your business owes. But it’s also about ensuring you stay compliant with all the tax laws and regulations applicable to your business.

But what are the main advantages? Let’s look at five significant benefits of careful, strategic tax planning.

By planning your tax across the year, you can:

1. Maximise your profits – strategic tax planning helps your company find the best available tax incentives, deductions and credits. This reduces your overall tax liability, cuts your annual tax costs and increases your overall profitability as a business.
2. Boost your cashflow – tax planning is a great way to open up more liquid cash and achieve a better cashflow position for the business. Cutting down the company’s tax payments frees up cash and helps you achieve a positive cashflow position.
3. Stay compliant and mitigate your risk – being proactive with your tax planning keeps the company compliant with the relevant tax laws and regulations. It’s a sensible way to tick the compliance boxes and reduce the risk of costly penalties and legal issues.
4. Drive your strategic growth – smart use of tax planning helps you reduce your tax costs and reassign those funds to your strategic business goals. Investing in areas that promote long-term growth and competitiveness is a golden opportunity.
5. Give your business a competitive edge – if managed well, efficient tax planning leads to lower operational costs. This gives you a competitive edge in pricing, innovation, sales and revenue generation.

How can our firm help you with tax planning?

Getting strategic with your tax planning has many advantages for your financial stability as a business. But to maximise your planning, working with an experienced adviser is important.

As your tax adviser, we’ll help you look ahead across the whole financial year, looking for opportunities to reduce your tax liability and find the best tax deductions and incentives.