Are you happy with your business tax position? Are you overpaying or just concerned you are not tax optimized? It’s a question that may make some business owners squirm, especially if they haven’t been diligent about their finances. But it’s an important one to ask, especially with the tax deadline looming in the United States on April 15th.
If you haven’t been paying close attention to your finances throughout the year, now is the time to act. There may still be time this year but if not, you can get a better handle on your tax situation in 2023 for your 2024 returns. Knowledge is power, so if you have any doubts, it’s always worth a conversation to get a second opinion from an outside and non-biased person.
Why Your Business Tax Position Matters
Your tax position is the amount of tax you owe to the government. A number of factors, including your revenue, expenses, and deductions, determine this. If you haven’t been keeping track of these throughout the year, you could be in for a big surprise come tax time.
One of the biggest mistakes business owners make is assuming they’ll be able to handle their taxes on their own. They may not have the time, resources, or expertise to do so effectively. They may not understand the impact of certain transactions. This can lead to errors on their tax returns, which can result in penalties and fines from the government. According to a survey by TD Bank, 45% of small business owners spend 5 hours or more per month managing financial tasks, with 22% spending 10 hours or more.
The Benefits of Outsourcing Your End-of-Year Finances
One way to avoid these problems is to outsource your end-of-year finances to a CFO or accountant. This can take a lot of the stress off your shoulders as a business owner, allowing you to focus on other aspects of your business. An experienced CFO can help you track your finances throughout the year, ensuring you have the documentation and data you need to file your taxes accurately and on time.
According to a study by the National Bureau of Economic Research, outsourcing financial management can lead to significant cost savings for businesses, with the average firm seeing a 9% reduction in costs when they outsource financial management functions.
There are a number of benefits to outsourcing your end-of-year finances, including:
- Time Savings
As a business owner, your time is valuable. You don’t want to spend hours sifting through receipts and financial statements, trying to make sense of everything. Outsourcing your end-of-year finances to a CFO can free up your time to focus on other aspects of your business.
- Expertise
A CFO or accountant has the expertise and knowledge necessary to handle your finances effectively. They know the tax laws and regulations inside and out, and can ensure that your business is in compliance with all applicable rules and regulations.
- Peace of Mind
Knowing that your finances are in good hands can give you peace of mind. You won’t have to worry about making errors on your tax return or missing important deadlines. Instead, you can trust that your finances are being handled professionally and efficiently.
- Cost Savings
Outsourcing your end-of-year finances can actually save you money in the long run. A CFO or accountant can help you identify areas where you may be overspending or wasting money, and can help you find ways to reduce your expenses and increase your profits.
- Preparing for Tax Season
If you haven’t already done so, now is the time to start preparing for tax season. Here are a few tips to help you get started:
- Get Organized
Gather all of your financial documents, including receipts, invoices, and bank statements. Make sure everything is organized and easily accessible.
- Review Your Finances
Take a close look at your finances and identify any areas where you may be able to save money or reduce expenses. This can help you minimize your tax liability and increase your profits.
- Work with a CFO or Accountant
Consider working with a CFO or accountant to help you prepare your tax return. They can ensure that everything is accurate and complete and can help you identify any potential issues or red flags.
- Don’t Wait Until the Last Minute
Finally, it’s important to remember that you shouldn’t wait until the last minute to start preparing for tax season. The earlier you begin, the more time you’ll have to get organized and ensure that everything is in order. Don’t let tax season stress you out – take action now to ensure that your business tax position is where it needs to be.
Conclusion: Is It Worth the Investment?
Outsourcing your end-of-year finances can be a significant investment for your business. However, it’s important to consider the benefits that come with it. Not only can it save you time and money, but it can also give you peace of mind knowing that your finances are in good hands.
So, are you happy with your business tax position? If the answer is no, it’s time to take action. Don’t wait until the last minute to start preparing for tax season. Consider working with a CFO or accountant to ensure that your finances are in order and that you’re in compliance with all applicable tax laws and regulations.
Ultimately, the decision to outsource your end-of-year finances is a personal one that depends on your unique business needs and circumstances. However, it may be worth considering if you’re feeling overwhelmed by the thought of preparing your taxes on your own. The investment you make now could pay off in the long run, both in terms of financial savings and reduced stress.
What steps can business owners take to ensure they’re in the best possible tax position, and is outsourcing their end-of-year finances the most effective option for everyone?
Working with Panterra Finance
Sam McQuade is the owner here at Panterra Finance. Sam has successfully scaled his decades-old ideas into an innovative full-service Financial Partner Solution for incubators, startups, and emerging business concepts, as well as well-established international companies, corporations and organizations with the introduction of Panterra Finance. During pivotal transitions, the Panterra Finance professional executive team members are equipped to provide an industry-leading concept of an on-demand Fractional CFO. In disrupting the traditional contracted title of CFO, Panterra Finance innovatively offers all its clients thought leadership based on international financial market experiences. Panterra Finance provides a unified global approach to businesses in the Americas, Europe, Asia, and Africa.
The Fractional CFO and Interim CFO experiences gained by the executives assigned to these positions throughout Panterra Finance offer them a broad perspective of the dynamic changes in international markets. The part-time CFO executives at Panterra Finance have access to worldwide teams that are proficient in and have initiated innovative strategies in projects centred on Defi, Blockchain, Bitcoin, Ethereum, Crypto, Tokenization, ICO, IDO, and STO services.
If you feel your business could benefit from Fractional CFO services, we invite you to book a call by clicking this link. It could transform your business.