Reviewing a Business Tax Return: The Next 4 Steps
Another difficult tax filing season comes to a close this week.
I'm not sure I've ever seen anything like it. With last-minute legislative amendments, software update delays, and IRS service glitches, this tax season could very well be the most chaotic and stressful in decades.
Despite an intense tax season, we're never finished, and we're always available for YOU – including a company tax return review. I'll get to that in a minute.
We understand that things haven't been easy for your Charlotte company, and we appreciate the faith you've placed in us to help you get through this difficult period.
Despite the world's current issues, we remain positive about the future and look forward to continuing to work with you as you grow and improve your business during the rest of 2021 and beyond.
Reviewing a Business Tax Return: The Next 4 Steps
So, how about we chat about that (your Charlotte business)?
Just because tax season is finished doesn't mean we've forgotten about you.
In fact, right now is an excellent time to check your business tax returns. This implies we'd like to assist you in examining your company's finances and making changes that will put you in a better position for the future. Here are a few "what ifs" to consider, which we may be able to assist you with in the coming months.
Step 1 of the Business Tax Return Review: What if you could cut some of your business expenses?
It's quite rare for a company to be as lean as it possible can be. When it comes to lowering your running costs, there is also a point of diminishing returns. However, we can assist you in finding a happy medium. Let's talk about how to:
- Get rid of software that you're paying for but don't use.
- Find out what you're doing yourself that could be done better and cheaper by hiring someone else - and vice versa.
- Look for ways to cut the expense of the administrative tasks that come with running a firm.
- Examine what parts of your business could be automated without sacrificing quality.
Some cost-cutting measures are easier to implement than others. The low-hanging fruit, for example, is switching corporate cell phone contracts or finding a cheaper credit card processing service.
However, with some research, we may be able to assist you in finding additional ways to save money without bringing any drawbacks.
Step 2 of the Business Tax Return Review: What if you could streamline some of your company's processes?
Over the years, we've worked with companies in a variety of industries in Charlotte. It's been fascinating to observe the variances and similarities in what makes each sort of business "tick" during that time. One of the most exciting aspects is that ideas from one industry may frequently be transferred to a completely different industry to significantly increase the efficiency of that company's operations.
For example, we can assist you in determining who does what in your company so that you have the right people performing the correct jobs. We can also look at how information is delivered at all levels of your company, identifying methods to cut down on unnecessary back-and-forth and shorten wait times for important decisions. You almost certainly have workflows that could be digitised to improve efficiency. These are just a few examples of the types of process improvements with which we may assist you.
We like to say around here that Efficient Business = Profitable Business. We can assist you with evaluating some of your business processes in order to uncover areas for development, allowing you to grow your company. And without having to pay the exorbitant management consulting costs that a large consulting firm would want!
Step 3 of the Business Tax Return Review: What if you could raise your prices?
You may have noticed that costs have recently risen on everything from food to timber to old vehicles. While Federal Reserve Chairman Jerome Powell recently stated that these price rises will be temporary as the economy recovers, I believe that some prices will never return to their previous levels. And this is something that many of you in Charlotte are experiencing.
When was the last time you looked at your own prices in your Gastonia company? Let's chat about it if it's been a while. Your labour and supplier costs have almost certainly grown. Not to mention the fact that, when costs rise around you, you must grow your own net income in order to sustain your own lifestyle. So, let's take a close look at all of your business's inputs to see if it's time to raise your rates and, if so, how much.
Step 4 of the Business Tax Return Review: What if you could save some money?
Many small firms were operating on fumes just a year ago. In reality, according to news reports at the time, most small businesses had only 29 days of cash on hand. As a result, when lockdowns occurred, they lacked the necessary cash reserves to survive.
If your company had an emergency reserve, it could withstand most short-term economic catastrophes. If you've ever wondered how huge firms can post multibillion-dollar losses in a quarter, it's because they either:
- Have huge cash reserves, or
- Have access to huge lines of credit.
For example, Apple, a little computer business that you may have heard of, has more than $195 billion in cash on hand. That's...wow... That's a LOT of cash. It's so much money that it's difficult to imagine anything, short of an asteroid obliterating the entire world, being able to kill Apple as a firm.
While you may not require such a large sum of money, wouldn't it be good to have a 3-6 month cushion in case something unexpected occurs? That is unquestionably a discussion worth debating.
So, just because your business tax return has been filed doesn't mean you're done with it. We can assist your Gastonia company in a variety of ways in the future. Here's where you can set up a meeting:
To getting things done,
The IRS slaps tax debtors with a slew of fines every year.
We are totally absorbed in our tax preparation process now that the Winter Olympics are over.