Tax planning and a skilled accountant: CEO's secret weapon.

Tax planning is a critical part of every CEO and entrepreneur's life, but let's face it: most CEOs aren't tax experts. It's easy to overlook the importance of this, but paying taxes on time and optimizing them can significantly impact your company's cash flow and ability to invest.

Paying too much in advance taxes eats into your cash flow, limiting the resources you could use to grow your business during the year. On the other hand, if you underpay, you could be in for an unpleasant surprise after the financial year ends: a hefty tax bill that could derail carefully planned investments or profit distribution plans.

An accurate forecast of a full-year profit/-loss is key.

At the core of tax planning is an accurate forecast of your full-year profit/-loss. This is where having a good accountant shines. They’ll keep your finances & bookkeeping up-to-date and ensure you won’t get surprises from the tax office. Your accounting firm has all the tools: the knowledge of your company’s financial status, tax deductions, and laws, plus an automated financial reporting platform to help optimize your tax situation.

Avoid the Taxman's surprises.

The earlier you act, the more options you have to manage your taxes effectively. Your accountant can optimize your taxes in advance by actively forecasting throughout the year. Waiting until the end of the year limits your choices, so start planning early to take advantage of solutions that support your company's growth and profitability.

Tax planning isn't just about minimizing taxes. It directly impacts your cash flow and business success. Keep your accountant in the loop from day one to ensure your taxes are optimized and paid on time.

5 Practical tips for successful tax planning

Monitor and forecast your P&L monthly.

Make sure to keep an eye on your Profit & Loss every month. Compare your actuals to last year's numbers and review the forecasted year-end results with your accountant. With riskrate, Your accountant can save time with AI-powered forecasting and reporting tools, or you can quickly work with your accountant to plan a budget or forecast. The better you forecast, the easier it is to predict your taxable income and avoid surprises after the end of the year.

Check your advance taxes throughout the year.

Don't wait until the end of the year. Regularly checking your estimated advance taxes against your expected taxable income will give you peace of mind and prevent the stress of unexpected tax bills. You'll also ensure you're paying only a little and draining your cash reserves unnecessarily.

Take advantage of tax-deductible expenses and investments.

Sit down or book an online meeting with your accountant to identify which expenses you can deduct and how well-timed investments can affect your taxable income. Strategic investments can significantly reduce your tax burden.

Submit credit card receipts to your accountant on time.

Make it a habit to hand in your receipts promptly. Keeping your accounting up to date is crucial, and even small tax-deductible expenses, such as representation costs, can add up to significant savings over time. Discipline pays off here.

Plan and update your P&L forecast monthly.

It's essential to review and update your company's profit forecast monthly to keep it current. This helps you anticipate upcoming tax and financial obligations and avoid cash flow problems.

By incorporating these elements into your monthly routine, you can achieve peace of mind and optimize your taxes and cash flow throughout the year.

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