Accounting Consultants are Valuable Business Assets
There is a tendency when thinking of accounting consultants to think of them as similar to other business consultants. It is true that accounting consultants give advice about the financial affairs of operating a business. However, a tax team can do much more to support a business and help it to grow and achieve success.
A considerable amount of advice the accounting consultants provide connects the business finances to those of the owners. Tax and retirement advice applies to both entities, and how the business transitions income to the owners can make a major difference in how much of the business profit is given to the government versus how much the owners get to keep. The advice provided by accounting consultants relative to retirement planning impacts both current tax liability and retirement income decades in the future.
The suite of services that are available from a tax or accounting group includes these important tax related matters as well as other financial advice and services:
- Business cleanup – When a tax team takes on a new business client, their accounting consultants go over all the current financial, bookkeeping, and tax reporting to offer advice on cleaning up the current processes and getting them organized for efficiency and IRS compliance.
- Tax planning – Tax planning covers a wide range of financial topics for both current tax advantages as well as long term planning for tax savings. The job of a tax professional includes staying up to date on federal and state taxation law and changes that impact your business and personal finances.
- Bookkeeping – The accounting consultants in cooperation with bookkeepers assure that your records are kept in a manner approved by the IRS. Should the IRS have questions, you will fare better if your response shows a well-organized bookkeeping system that properly categorizes income and expenses per IRS rules.
- Tax preparation – The firm prepares your tax returns and associated supporting documents. Using a professional tax team provides assurance that they are up to date on all regulations and current required forms.
- Business entity formation – Depending on the financial situation of the owners and the type of business, your accounting advisors can help you to choose a business entity for tax and liability purposes. Other than a sole proprietorship, you could form as a partnership, LLC, Limited Liability Company, S-Corporation, or a full corporation. The choice, though possible to change later, is a decision best made early in the life of the business.
- Asset protection – There are other considerations in addition to business entity that are critical to protecting the assets that you accumulate during business and personal financial activities. There are various protective strategies to stave off threats to your valuable assets.
- Estate planning – As you grow your business and build personal wealth, you want expert advice and help in planning how to structure your estate and pass it over to heirs without excessive taxation. You also need to set up legal documents to handle management of your estate and your care should you become incapacitated.
Why try to figure out and manage all these details when you can hire accounting consultants in a tax team to take care of it for you?