Tax Planning Can Give Your Business a Healthy Cashflow

1
Tax Planning Can Give Your Business a Healthy
Cashflow
2

• Growing your business and increasing cashflow is
  what a healthy business is all about, but whats
  the best way to go about doing it?
• You might not be aware of this, but by hiring a
  tax professional or outsourcing your tax
  requirements, you can expand your business and
  have a steady flow of cash thanks to savvy tax
  planning and intelligent tax preparation.
• Cash flow is essential for helping you pay your
  debts on time, maintain business operations and
  grow your business, and without it, ruin lurks
  just around the corner. But what does managing
  cash flow effectively look like?

3

• What is effective cash flow management?
• With the goal of getting you into the position of
  having a positive cash flow (more money coming in
  than going out, or being in the green), cash
  flow management is comprised of practices and
  strategies that enable you to better track,
  analyze and improve your businesses financial
  position. Hiring help from a tax professional can
  help you achieve this with ease, and here are
  just some of the most effective tax strategies
  for achieving a healthy cash flow
• Reducing your income taxes
• You can improve your cash flow immediately with a
  tax planning service, that helps you eliminate or
  at the very least, decrease, the withholding or
  estimated quarterly payments.

4

• Breaking even
• Knowing how much you need to earn before you can
  break even, is a vital step in working towards a
  positive cash flow. As soon as you go over your
  break-even point, you know youre on the right
  track, whereas if you consistently fall short of
  it, there could be a problem that needs to be
  addressed with the help of a tax professional.
• Having an emergency cash reserve
• With the help of a tax preparation service, you
  can save enough money to put towards a cash
  reserve, which ideally, should be enough to cover
  a minimum of six months worth of expenses.

5

• Making early payments
• By encouraging your customers to pay early with
  incentives such as special deals or discounts,
  you can help make sure that you always have a
  healthy pot of cash to access whenever you might
  need it.
• Prioritizing cash flow over profit
• While healthy profits are certainly a sign of a
  healthy business, they are not as important as
  managing your cash flow. With this in mind, make
  a point of always checking your incomings over
  your outgoings and break-even point.

6

• Aim to clear your inventory
• With the help of discounted sales and planned
  promotional events, you can get products moving
  out of the door and into customers homes, as
  quickly as possible. Clearing out your inventory
  is a fantastic way of giving your cash flow a
  boost, and getting you back into the green.

7

• A healthy cash flow might not happen overnight,
  but it might not happen at all without
  intervention from a tax planning and tax
  preparation professional. To kickstart your cash
  flow and put your business in a better position
  as it approaches a new year, try working with a
  tax professional in your area, or outsourcing
  your requirements, which is often a more
  cost-effective and convenient choice.
• At Heyer Inc, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax services Miami. If you
  are looking for an individual accountant in
  Miami, heyer inc would be a right option.