Tax Optimized Accounting

Accounting procedures can have a profound impact on a company’s tax obligations. In some cases the regulations may permit the taxpayer to use different methods for tax and financial accounting. Tax optimized accounting involves the selection of methods and procedures that produce the greatest deferral or avoidance of taxes.

Once the decision to use a method of accounting is made a company must use it consistently unless given special permission to do otherwise by the IRS, so it is beneficial to put some thought into your long-term tax mitigation strategy at the outset of a new venture. We understand, however, that tax considerations are often an afterthought until business owners realize that nearly half of their bottom line is being sent in to the government.

That being said, a company can make a reasonable investment in optimizing their tax structure. For instance, a business has flexibility in choosing whether to use accrual or cash basis accounting, which inventory procedures to use and whether to take advantage of accelerated depreciation methods. Over time a business’s operational profile may change and there can sometimes be significant tax savings achieved by electing to use tax optimized accounting procedures.

We can help you determine the accounting methods best suited to your operational profile and long-term business objectives.

Call us today to find out how tax optimized accounting can help your business save money.

Tax optimized accounting involves the selection of methods and procedures that produce the greatest deferral or avoidance of taxes. Podraza CPA can help you determine the accounting methods best suited to your operational profile and long-term business objectives.