April 17th was a major tax filing deadline in the U.S.
Most taxpayers breathe a sigh of relief after filing their tax return and are happy to not deal with taxes for another year. What they are missing out on is the great tax planning that can be done after filing your tax return.
Here are 5 Quick Tax Planning Tips that I recommend doing after you file your tax return.
Planning Tip #1: Implement the recommendations from your tax advisor
When my team prepares a tax return, we are not just focused on that one year. We are also looking for tax saving opportunities in future years. We make a note of these items and discuss them with our clients after the tax return is filed.
Now is the ideal time to discuss these opportunities with your tax advisor.
Planning Tip #2: Get your bookkeeping in order
Your tax advisor will often make adjustments to your accounting as part of preparing your tax return. Be sure to get those adjustments entered on your books. This makes it a great time to review any bookkeeping questions you have with your tax advisor.
Bookkeeping is one of the most powerful tools when it comes to maximizing tax savings. It’s where the activity gets captured and when done properly, it can capture additional tax savings.
Planning Tip #3: Update your company book
The company book is the place to organize the history of your company. It can include organizational information, meeting minutes, including annual minutes, annual financial statements, and much more.
This information in a company book can help support tax deductions and tax positions, which is an effective way to protect your tax savings.
When my team prepares a business tax return, we provide a list of items to include the annual minutes. Be sure to update your annual minutes so the items in your business tax returns are properly supported in your minutes.
Planning Tip #4: Track your estimated tax payments
Mark you calendar for your estimated tax payments due over the next 12 months. The real planning with estimated tax payments is making sure you are paying the right amount. This amount can change throughout the year so check in with your tax advisor throughout the year to make sure your estimated tax payments are on track.
Planning Tip #5: Get your tax return done
If your tax return is on extension, get your tax return done now. Most people don’t look forward to the tax return preparation process which makes it tempting to procrastinate. But your tax return is a tremendous tool in your tax planning so getting it done sooner may mean paying less tax sooner.
The best opportunity to reduce your taxes comes from planning your taxes not only throughout the year, but years in advance.