Louisville, KY Tax Planning Accountant: Maximize Deductions & Minimize Liability

The IRS is purposely spelled like "THEIRS", isn’t it? But hey – you don’t want to give more than is absolutely necessary. And that’s why you need an accountant you can count on, literally, because being an accountant is, well… taxing. (Sorry, we all need a bit of humor in tax season – don't know about you, but it gets me feeling depreciated.) Associates In Accounting, CPA has been around for four decades, and with this wealth of experience, they know all the right ways to help you maximize deductions, take advantage of tax credits, and manage your income and expenses to reduce tax liability.

Associates in Accounting highlights four key areas it will review for each client to identify opportunities for savings. Read on to find out how to optimize your taxes or go to https://associatesinaccountingcpa.com/ to learn more.

Choosing the Right Business Structure

Your business entity affects your tax obligations, and the best choice depends on the income level, reinvestment plans, and tax-saving goals. For example, choosing an S Corp may help you avoid paying self-employment tax on some income. In contrast, C Corps benefit from a flat 21% corporate tax rate and profit reinvestment opportunities.

Compensation Planning

The accountants will also review your compensation to determine the lowest reasonable payroll while considering personal income needs and retirement planning.

Maximizing Deductions

Associates in Accounting explains that many business owners overlook tax deductions, therefore, a thorough review of expenses is essential for effective tax planning. The team lists some commonly missed deductions, such as office supplies, car expenses, and previously purchased personal items used for business.

Other Tax Reduction Opportunities

Tax reduction strategies include the following: 

• Deferring income and accelerating expenses 
• Taking advantage of tax credits 
• Utilizing retirement plans 
• Leveraging depreciation strategies 
• Utilizing state and local tax benefits, and more!

To ensure that each client takes advantage of the most effective tax reduction opportunities, Associates in Accounting maintains and constantly updates a database of common strategies.

“We have hundreds of strategies available,” says Rick Fields, Associates in Accounting's CEO. “For example, a very common strategy is to put money into a retirement account to gain a tax deduction. Another client might want to pursue purchase of a vehicle or piece of equipment in a particular year to reduce the tax liability. These and many other strategies should be considered and explored with clients to minimize their tax liability.”

About Associates In Accounting, CPA

With its experienced team of accountants and CPAs, Associates In Accounting has been helping local businesses of all sizes since 1984. In addition to tax planning and preparation, the firm also offers bookkeeping, financial statement preparation, payroll services, retirement planning, and personal financial counseling.

Enough with the procrastin-tax-ion - reach out now to ensure your financial records are maintained and organized throughout the accounting period. Book a consultation at https://associatesinaccountingcpa.com/ and let’s tax-celerate those refunds!