How Can You Reduce Your Tax Bill?

It’s January, you have just been to your accountant to sign of your accounts and tax returns and given your tax liability for the year. The first question you ask your accountant is how do I reduce my tax bill for that tax year?

The Limitations of Year-End Adjustments

The truth is that after the end of year we are not able to make large adjustments to your tax position, we might make some small adjustments for use of home office and travel costs if relevant which does help, but no big tax adjustments to knock money off your tax bill.

Building a Relationship with Your Accountant

What can you do then? Have a relationship with your accountant, they are best placed to give you advise on your business to help you make decisions about expenditure during the tax year that helps with tax deductions.

It’s Not Just About Tax Savings

But it is not just about making tax savings, no it is more than that. How can you make more money? Are you being efficient in your purchasing processes? Is there wastage either time or products? Do you have a high turnover of staff? Why might this be the case? Are you looking to grow your business?

Using Management Accounts to Improve Your Business

All these questions and more can be answered by your accountant. How do we do this? By preparing management accounts which shows us your current in year performance. We can then review this against other businesses and give you opportunities to consider how you can make changes, plan for taxation, plan for growth, look at how much cash you do or do not have.

Plan Ahead with Quarterly Reviews

We recommend sitting down with one of our team at least once a quarter to discuss your business needs and wants. We will guide you by providing insightful financials as well as advice on how to make changes to improve your business.

Its up to you whether or not you make these changes but at least you are being proactive rather than reactive when it come to your business.

Proactive vs. Reactive Business Management

As accountants’ management accounts and business advisory is what we love as it gives us an opportunity to help businesses change. With just compliance we are just reporting what has been done with very little opportunity to change.

Grow Your Business with Our Expertise

If you are looking to grow your business, then contact us for more information. Yes, it will cost you a little more but look at this as an investment in your time and business.