According to the Tax Foundation, the Tax Cuts and Jobs Act of 2017 (TCJA) will result in approximately one trillion dollars worth of federal revenue and economic growth. As a business owner, the potential for growth provides the incentive to maximize your company's earning potential within the new tax law. However, companies that want to take advantage of the new tax law are finding it difficult to estimate its impact because they are not prepared for the changes.
Tax planning is a regular part of owning a business. You might delay taking income, pay off expenses quickly or donate to generously charity to reduce your tax burden, but the TCJA could radically shift the strategies your business uses - potentially for the better.
How is your business preparing for the new tax law?
According to Accounting Today, just one-third of companies say they are "very ready" for the changes brought on by the TCJA. Are you ready? As a business owner, you understand the in's and out's of your industry, but you rely on business-to-business professionals to handle your accounting, payroll and taxes. As it turns out, many business owners across the country are doing the same to prepare for the changes of the TCJA including consulting with third-party subject matter experts.
One reason it is advantageous to update your tax planning strategies with outside help is that it gives your business the opportunity to take advantage of their local knowledge and understanding of industry best practices. For example, in response to the federal TCJA, New York passed changes to the state tax code that affects charitable donations, adding another layer of complexity to understanding.
What if my business is not prepared?
Have you taken steps to prepare for the federal government's TCJA and subsequent changes to state law? If not, you may be behind the curve in reducing your tax burden and ensuring compliance. However, according to Accounting Today, tax professionals are in high demand but are only available in short supply, leaving many businesses without the proper resources in hiring and consulting.
If you find yourself lacking the necessary resources to accommodate the changes of the TCJA in your business, the experienced attorneys at Goldburd McCone LLP may be able to help you prepare by providing innovative tax strategies with their knowledge gained through 35 years of practice.