preparing for tax time all year long

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preparing for tax time all year long

Having a certified personal accountant working with you to prepare for your taxes throughout the year will help you in so many ways. Do you wait until the beginning of the year to get your documents in order to file your taxes? Did you realize that doing so could end up costing you money when you do file your taxes. This blog will show you some of the things that you could be missing if you aren't paying attention to your taxes until it is time to file. Maybe after reading, you will make changes to the way you go about preparing for tax time.


How Accountants Can Also Be Business Advisors

Most people think of accountants as, well, accountants​. They crunch numbers and do taxes. However, accountants can, and often do, other financially-related things. For example, accountants can be excellent business advisors. They can even sit on business advisory boards and committees. Here is how accountants are able to act as business advisors.

They Look for Patterns in Your Business

There are always patterns in business. Maybe a pervasive pattern in your business is an upswing in profits right before the third quarter of the year begins, and a complete slump at the end of the first quarter. Maybe there is a financial drain on your business accounts at certain times of the year stemming from overuse of energy. Whatever the pattern, accountants find it, and they can use these patterns to predict what might happen if there is a financial crisis in your company or predict outcomes if you want to buy another company in order to revive it at a time of the year when profits are not necessarily at their peak. Your accountant can advise you about business moves and strategies that would be more beneficial, smarter, and more profitable to you based on these patterns.

​They Watch What Is Going on in the Financial and Business Worlds

Knowing what your competitors are doing plays a huge part in the financial decisions you make for your business. You want to make the smartest and best decisions possible, but you should be looking at what your competitors are doing. Your accountant is more in the know regarding other businesses and their finances, which makes him/her the go-to person for financial advice. 

They Can Tell You If Business Loans Are a Good Idea Right Now

Everyone in business gets a little dreamy-eyed when business capital is mentioned. Expansion and paying off debt is great, but not so much if you are taking on more debt to do so. Your accountant can look at your financials to determine if another business loan is a good idea. He/she can also tell if the loans you are considering will do more financial harm than good in the long run. Higher interest rates and shorter payback terms can really destroy what businesses are attempting to do. The accountant acts as an analyzer for what your company can and cannot handle in terms of financial debt and burden, and then advises you in those regards.