According to the narrator in the video, business tax planning is taking into account all facets of business, such as Admin, finance, HR, IT, operations, etc., and looking at them from a taxable standpoint. Why? Because businesses spend a lot of cash in various areas, and if all these facets aren’t considered from a taxable perspective, a business can suffer serious implications such as penalties from authorities What does business tax planning include?
Business Structuring
When people enroll in a business tax training program, they first learn business structuring. Business structure is the legal framework that influences the day-to-day operations of a company.
Business structuring should be done during the formative stages, failure to which the business will lose out on tax savings it would have gotten.
Pre-Planning Tax Payments
It’s important for businesses to pre-plan tax payments because it’s easy to forget the due date or even not have money to make the tax payment.
Cash Management
Learning how to manage cash inflows and how they fit into the tax payment plan is an important aspect of tax planning. Taxes don’t have to be paid immediately as long as they’re fully covered by the end of the year.