Why Do You Need a Tax Advisor When Your Business Is Growing - Vince Iannello

1. Why Do You Need a Tax Advisor When Your Business Is Growing? The moment your business begins to take off you will face many new challenges. As a business owner, there are so many things that you need to think about and plan for. This is especially the case if your company starts to grow rapidly or you begin to bring in more revenue than you can manage alone. At this stage, it is essential to have an experienced tax advisor like Vince Iannello, President of Iannello and Associates Professional Corporation on hand to help with planning, accounting, and advice on how best to reinvest profits or avoid paying unnecessary taxes. It might seem like something that can wait until later but giving it the attention it deserves right now can save you a lot of money in the long run. Here are some reasons why having a tax advisor at this stage is essential for any growing business. • Understanding the Tax Process The first thing to remember is that there is a difference between tax planning and tax advice. Tax planning is the process of identifying your business’s tax obligations and managing these as best you can. Tax advice, on the other hand, occurs when someone has already completed this process and is providing you with a set of recommendations to follow. Tax planning is a more involved process since it requires you to consider your business’s circumstances. This is why you must have an accountant who can assist you with the planning process. • You May Have to Stabilize Your Cash Flow More As your business grows, you may find that you have to pay more in terms of taxes each year. This is even more likely if you are seeing higher levels of profit. Another occurrence that you may find as you expand is that you are required to pay your taxes every quarter rather than annually. Having a tax advisor at this stage can help you to manage how much you are paying in taxes so that you have enough cash on hand to operate normally. They can also help you to make sure that you are meeting all of the tax requirements so that you do not have to worry about being penalized for anything. • Protecting Your Company’s Assets and Assessing Risk of Growth At this stage, you will want to consider the long-term impact that growth could have on your assets. This includes things like your buildings, inventory, and equipment. When it comes to assets, your main concern will be how they are being used. If they are being used to generate income, they will be considered capital assets. Tax advisors like Vince Iannello can help you maximize your deductions related to these capital assets. Conclusion The moment that your company begins to grow, you will need to have a tax advisor on hand to assist with planning and advice. This is because it is important to understand the process that you will be going through and how it can affect your business. It is also important to protect your company’s assets and take advantage of any deductions that you are eligible for. Having a tax advisor at this stage will