If there is anything as certain in business as paying taxes, it is that tax laws are constantly evolving. How a law impacts your business today could be entirely different than how it worked in the past, or how it will work next year.
Some new laws create additional tax burden. Others open up new benefits and possibilities. Others do both – depending on how well you stay on top of things.
Maintaining an up-to-date understanding of changes in the tax code isn’t just the responsibility of your accountant. After all, there is only so much we can do after the financial actions have already been made.
Be proactive, not reactive
A smarter plan of action is to work together to take on new tax laws long before it’s time to file. There are always ways to be more tax efficient and taking the time to map out a strategic plan in advance is the best way to make this happen.
The ability to strategically manage changes in the tax code is just one of many reasons why we recommend business owners take a proactive and not reactive approach to making financial decisions. It is important for you to understand new tax laws because that is the only way to minimize their impact.
