Written by Darren Carter, Darren Carter Wealth Management & The Construction Hub
For many businesses their tax year will come and go without much thought. Unfortunately this means their corporation tax liabilities will be locked in and, come time to pay the corporation tax nine months later, owners will be asking their accountant what can be done to mitigate tax liabilities. By then the answer will be, “not much!”.
Tax planning needs to be completed throughout the year, something that is hard to do if your accounts are not kept in real time. A cloud-based field service management software that integrates with your accounting package helps you and your clients with taxes year-round. These two pieces of software give your accountant and financial adviser the reports necessary to help with corporation tax mitigation and tax planning, not just at tax season, but all year round.
What you need to know about managing tax in your field service business
With the financial tax year end in mind, the most common thing I get asked about from my clients and prospects revolve around tax, how it works and mitigation techniques. For all of these questions, there are a few basic first steps you need to know and implement before you get started.
To help manage your tax, you need the following:
- You need to be able to know your business finance figures in real time
- Tax planning and allowances need to be conducted during the tax year, not after
- A financial adviser is regulated to provide financial advice
- You need to have the right business software and accounting software in place
How cloud-based accounting and field service management software streamline tax season
Working with a cloud-based software like simPRO gives you overall control and visibility of your business as well as handling all the financial transactions in the background. This provides your accountant a real time financial position and the ability to produce financial reports at any given time.
Benefits of field service management software:
Integration from business to accounting software - Eliminate manual data entry and streamline processes. Using cloud-based accounting software that integrates with your business management software will enable you to keep your data up-to-date and optimise your processes.
Comprehensive reporting - Have important data at your fingertips. Easily customise and schedule reports, quickly collate data and identify where inefficiencies lie.
- Real-time information - Gain complete visibility of your business, as it happens. With a real-time view of your business cash flow, your accountant can plan and implement allowances throughout the year. This also helps your financial advisor gain important information as they need it.
More tips for tax and financial planning
The best outcome is achieved through collaboration between you, your accountant and financial adviser, preferably one who knows your industry. This enables everyone involved to provide views of your finances from different perspectives. Further, agreeing on the cash flow and reinvestment needs of your business, and creating a plan with surplus profit, can provide a sensible way to extract profit and plan for your future.
Don’t let another tax season pass without being fully prepared. Speak to your account and financial adviser to discuss how you can make year-round tax planning easier and improve your business finances.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
Darren Carter Wealth Management is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products.
The ‘St. James's Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James's Place representatives.