Taxpayers, we are mid way through the year. Have you made your quarterly tax estimates OR are you holding cash for the threat of looming recession in our economy? Either way, I ALWAYS recommend doing mid year tax planning.
What is Mid Year Tax Planning ? – you may ask. Well, this is when you review your year to date bookkeeping and financial records. Are they accurate?
Then you meet with your tax advisor, review the year to date reports and discuss the upcoming six months and your best guesstimate of how the numbers will show up. Your tax advisor takes all these numbers and runs a mock tax return for the year. How much will you likely owe? Do you have sufficient cash set aside for the estimated taxes? Or do you need to change things up for the next six months to make sure you do have enough cash to pay your taxes?
These are the critical questions that need answering and need answering now while you still have time to make changes. Don’t wait until the 4th quarter to do tax planning as that doesnt give you much time to make changes. Now is the time!
The money you spend with your tax advisor NOW will save you more than double that before year end, if tax planning is done well.
Questions? Reach out to me athttp://wendybarlin.com and don’t forget to check out our Resources.