As we wind down tax season, as a business owner, you may be thinking to yourself ‘what now?’.

We’ve discussed the importance of both forecasting and budgeting for the upcoming year but it’s also important to take a look at your businesses completed tax return and see if there are any major changes you expect this calendar year that could affect things like your estimated taxes or deductions. Depending on the changes, you may want to work with your accounting team to reforecast and rebudget for the remainder of this fiscal year. As a business owner, here are some questions you can ask to forecast for the upcoming year:

• Are you effectively maxing out all of the QBI deductions for your business while it is still available to you?

• Are there any upcoming changes to regulations or legislation that could impact our business?

• Did the business have any cash flow issues in the past that could be handled with better guidance?

• What are our current expenses and overhead costs, and how can we reduce them in the upcoming year?

• What new products or services can we offer to increase our revenue in the upcoming year?

• Are there any staffing changes or additions we need to make to ensure growth in the upcoming year?

• When purchasing items or paying business expenses, are you making sure to keep track of all of your receipts? In the case of an audit, receipts help to back up all expenditures in order to cover your business from further investigation.

• Have you double-checked to ensure that no tax credits are missed? Or that there are no unexpected tax liabilities? Having up-to-date tax projections can help you to stay on top of your tax bills and help to minimize the possibility of any surprises come tax season.

By asking these questions, you can gain insights into your business and make informed decisions about budgeting, staffing, marketing, and other aspects of your business that can impact its success in the upcoming year.

At Palmetto Accounting our dedicated team is here to make the questions of ‘what if’ easier for you by walking through them with you. With quality guidance, projections, and filings, you can feel assured that you will know all that is to be expected when it comes to taxes. If you need any help preparing for the 2023 tax season, give us a call.

Also, take a look at our personal tax questions and read part one of this blog series here.