Fiscal Deity: Tax Consultant
Strategic planning throughout the year results in a minimal tax balance. The objective of planning your tax payables is not to prevent paying taxes, it is to pay no more than your fair share of taxes, and keep your money where it earns you the most.
If you aren't aware of it yet, Uncle Sam pays no interest. If he deducts your tax payment monthly or quarterly, and takes more than his fair share, he doesn't give you anything back for the privilege of using your hard earned money. By the same token, if you don't pay in enough, he charges you a penalty and interest.
As a W-2 wage earner, if you are over paying your tax debt, you may be considering it a 'forced savings plan', but you gain nothing, using that particular plan. By putting the same amount in savings every year, earning interest on the balance, and continuing to regularly invest in your savings fund, you may be able to utilize the retirement savings plan reducing your tax debt significantly. With the advice of a competent tax consultant, your savings can become an investment with a tax reduction at the end of the year.
As a business owner paying tax quarterly, over paying your taxes can cost you considerably more. Your tax debt may actually be borrowed money, on a line of credit from the bank where you pay interest for the use of the money. If tax planning were part of your business expenses, you get to deduct the amount paid to the tax consultant from your business, you don't have to pay interest on more than you need to pay in (if using a line of credit to pay taxes), and any saved money can be placed in a retirement fund or savings plan to draw interest for you. Once again, a tax consultant can save you money.
These are just a couple of ways you can save money by hiring a tax consultant. So, who is your Tax Deity? Your tax consultant or Uncle Sam?
Copyright © 2005 – Jan Verhoeff
Tax planning is an important part of setting up your business, working your job, or living in a world where taxes are a fact of life. Consider saving money on your taxes this year, by planning well, and paying yourself first. Visit eBiz Brand Performance for more information.
Related Articles:
NASA Presents ScottMadden, Management Consulting Firm, With Award for Shared Services Expertise
The National Aeronautics and Space Administration has awarded ScottMadden, Inc., a management consulting firm, the NASA Public Service Group Achievement Award for its shared services expertise.
ACOM Healthcare Business Consulting Group Adds Chiropractic Consultant with Powerful Coding, Documentation and Business Management Credentials
New consultant's combination of insurance company and clinic professional experience optimal for teaching doctors how to code and document ethically for maximum revenues, fewer challenged claims.
Amadeus Consulting Develops Integrated, Online Survey System for Medical Group Management Association
Amadeus Consulting, a leading custom software development company, today announced the completion of an advanced survey system developed for Medical Group Management Association (MGMA), the nation's principal membership association for the medical group practice profession. The custom survey application will streamline the aggregation of critical practice data and provide key performance benchmarks and industry trends to MGMA members.
TopNotchWebsites New Example Site Showcases Content Management System Features to Business Owners
TopNotchWebsites creates an example site to showcase the features and benefits of open source content management system (CMS) websites. Features include the ability to create a community of users, forums, podcasting, chat rooms and newsletters.
Datascope Consulting Release Version 2 of Their WMS (Warehouse Management System) for SYSPRO
Datascope today announced the release of version 2 of its WMS (Warehouse Management System). This warehousing solution has been specifically built for operation with SYSPRO ERP and therefore is highly integrated into SYSPRO via the standard e.net object layer. WMS fully integrates Barcoding into SYSPRO, allowing users to more efficiently process any tasks.
Acquity Group Named Top Area Management Consulting Firm by Orange County Business Journal
Acquity Group's Irvine, CA office ranks eighth on Journal's list of top management consultants
Institute of Management Consultants Announces 2008 Annual Confab Conference "Mastering the Art of Consulting"
IMC USA's annual Confab conference will take place in Reno, Nevada on October 25-28, 2008. Confab is the only conference for consultants by consultants designed to help new consultants start their consulting practice and experienced consultants to grow their consulting firms.
Midas Tunes Up Financial Management System with IDT Consulting and Microsoft Dynamics GP Software
IDT Consulting, a leading provider of business technologies, completed phase one of a new financial management system for Midas Inc., one of the world's largest providers of automotive services. Working with IDT Consulting on system selection, system implementation and integration, Midas chose Microsoft Dynamics? GP business management software. The new system has been customized to Midas' accounts receivable and billing processes. It has the ability to create a long-term interface with the company's legacy system.
Hollander Consultants Celebrates 25 Years as an Industry Leader in Successful Medical Practice Management Consulting
Hollander Consultants celebrates 25 years as an industry leader in successful medical practice management consulting.
Ontario-Based Management Consulting Firm Uses Team Approach for Small Business Solutions
Multi-Link Business Management Solutions (http://www.multilinkconsulting.com) helps its clients maximize their full potential and solve their business problems by 'linking" their customers with specialized industry professionals.