Small business tax planning involves assessing your current financial situation and strategizing how to reduce your tax liability for the upcoming year. With 2023 underway, ensuring you take advantage of any tax deductions or credits available to help reduce your overall taxable income is essential.
Tax planning helps small business owners ensure they pay the lowest amount of taxes possible, giving them more funds to reinvest back into their companies. However, tax season is often associated with stress. Fortunately, small business owners in the greater Portland metro area don’t have to stress as we at Fordham & Co. can help you with your 2023 tax planning strategies.
Small Business Tax Planning Strategies
Ensure You’re Operating Within the Correct Business Entity
Choosing the wrong business structure could lead to paying higher taxes than necessary. The type of business entity you choose affects how you pay taxes. Most small business is set up as a sole proprietorship, an LLC, a corporation or a partnership. Each type has pros and cons and should be chosen as part of an overall business and tax strategy.
Review Your Current Accounting Method
You should also review your current accounting process to ensure you use the most practical approach. The accounting method you utilize can impact the amount of taxes you owe in any one year.
For example, depending on your business, choosing an accrual basis of accounting may be more or less advantageous than utilizing a cash basis. Determination of the best method of accounting is dependent on your operations, line of business and type of business entity.
Consider Fringe Benefits for Employees
Small business owners can also provide fringe benefits to their employees.
Partner With Expert Taxation CPAs
Finally, small business owners in the greater Portland metro area should consider partnering with a CPA for planning and preparation needs. A CPA specializing in small business taxation can help you make the most of your deductions and credits while ensuring you comply with all applicable tax laws.
Why Choose Fordham & Co. for Small Business Tax Planning?
At Fordham & Co, we specialize in small business taxation. Our expert CPA team has years of experience helping small businesses throughout Washington County and the greater Portland metro area with their tax planning needs. We provide personalized, knowledgeable service that aids clients in reducing their tax liability.
We understand the complexities of small business taxation and are committed to helping you plan for the future. We provide comprehensive tax planning services to help you reduce your taxes and ensure you’re leveraging available deductions and credits. Our team constantly monitors changes in federal, state, and local small business tax laws to ensure that clients are up-to-date with the latest developments.
Contact Our Experts Today
If you’re a small business owner and you need help with tax planning for the upcoming year, contact Fordham & Co. today. Our team of experienced CPAs can provide personalized advice to small business owners on how best to plan for their taxes in 2023.
We’re dedicated to helping you make the most of your deductions and credits while ensuring you remain compliant. Contact us today to learn more about how small business tax planning can help you.