This time of year we find out from tax preparers what our tax liability is for the previous year’s income. Unfortunately in many cases the figure is a surprise. There are often interest and penalties added for failure to pay estimated taxes over the course of the year
. Compounding the situation is the fact that cash may have been re-invested in the business or paid out to owners and spent, and no longer readily available to pay taxes. One of our values at SmartBooks is that proper planning prevents accounting emergencies. Along those lines, proper financial accounting and reporting over the course of the year should provide business owners with the information they need to estimate their tax liability and to pay the proper amounts of quarterly estimated taxes. In March or April there will always be a final true-up of taxable income and associated liabilities. However, SmartBooks clients can have the information they need to properly pay estimated taxes over the course of the year to avoid unpleasant large surprises at year end. Intra-year tax planning is often included in our SmartPrime service package and is available on request by clients regardless of service package. Current clients, if you are concerned about understanding your tax liabilities and avoiding unnecessary surprises please contact your Accounting Associate or Team Leader.
If you are not a client and interested in learning how SmartBooks can provide tax support services for you or your clients, please contact founder Calvin Wilder at email@example.com or978.202.3064 x700.
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